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840 terms · page 16 of 35
Hedging
Taking an offsetting position to reduce the loss an existing exposure would suffer from an adverse move.
Technical Analysis & Chart PatternsHeikin-Ashi
A modified candlestick chart in which each period's values are averaged with the previous period's to smooth the series.
Market Psychology & Behavioural FinanceHerd Behaviour
The tendency to follow the actions of a larger group rather than one's own analysis.
Orders, Execution & Market StructureHigh-Frequency Trading
Algorithmic trading characterised by very short holding periods, very high order counts and competition on latency.
Bonds & Fixed IncomeHigh-Yield Bond
A bond rated below investment grade, offering a higher coupon to compensate for higher default risk.
Market Psychology & Behavioural FinanceHindsight Bias
The tendency to believe, after an event, that it was more predictable than it actually was.
Derivatives, Futures & OptionsHistorical Volatility
The realised standard deviation of an underlying's returns over a past period, annualised.
Corporate Actions, Dividends & GovernanceHolding Company
A company whose principal assets are controlling stakes in other companies rather than an operating business of its own.
Market Psychology & Behavioural FinanceHome Bias
The tendency to hold a far larger proportion of domestic assets than global market weights would suggest.
Market Psychology & Behavioural FinanceHot-Hand Fallacy
The belief that a run of successes will continue because the performer is on a streak.
Market Psychology & Behavioural FinanceHouse Money Effect
Taking greater risks with money regarded as winnings than with money regarded as one's own.
Funds, ETFs & Index InvestingHybrid Fund
A mutual fund that invests across both equity and debt, in proportions set by its stated category.
Market Psychology & Behavioural FinanceHyperbolic Discounting
Discounting future rewards at a rate that falls as the delay increases, producing inconsistent preferences over time.
Orders, Execution & Market StructureIceberg Order
A large order that reveals only a small portion to the order book at a time, refreshing as each slice is filled.
Indicators & OscillatorsIchimoku Cloud
A multi-line system plotting conversion and base lines, a shaded cloud projected forward, and a lagging span behind price.
Funds, ETFs & Index InvestingIDCW Option
The plan option under which a fund periodically distributes part of the NAV to unit holders as income distribution cum capital withdrawal.
Market Psychology & Behavioural FinanceIllusion of Control
The belief that one can influence outcomes that are largely determined by chance.
Orders, Execution & Market StructureImmediate-or-Cancel Order
An order that executes whatever quantity is available at once and cancels the remainder rather than resting in the book.
Orders, Execution & Market StructureImpact Cost
The cost, expressed as a percentage, of executing a stated order size against the current order book relative to the mid price.
Fundamental Analysis & ValuationImpairment
A write-down of an asset's carrying value when its recoverable amount falls below what the balance sheet records.
Derivatives, Futures & OptionsImplied Volatility
The volatility figure that, put into an option pricing model, reproduces the option's current market price.
Derivatives, Futures & OptionsIn the Money
An option that would have positive value if exercised immediately.
Funds, ETFs & Index InvestingiNAV
The indicative net asset value of an ETF, computed and published continuously through the trading day.
Corporate Actions, Dividends & GovernanceIndependent Director
A board member with no material pecuniary relationship with the company, its promoters or its management.