Browse All 840 Stock Market Terms A–Z

Hedging Risk & Portfolio Management ratio (x, times) Taking an offsetting position to reduce the loss an existing exposure would suffer from an adverse move. Hedge Ratio = Value of Exposure x Beta / Contract Value of the Hedging Instrument

Heikin-Ashi Technical Analysis & Chart Patterns ₹ A modified candlestick chart in which each period's values are averaged with the previous period's to smooth the series. HA Close = (Open + High + Low + Close) / 4; HA Open = (Previous HA Open + Previous HA Close) / 2

Herd Behaviour Market Psychology & Behavioural Finance qualitative The tendency to follow the actions of a larger group rather than one's own analysis. Test: the decision follows what others are doing, without independent evidence being gathered or weighed

High-Frequency Trading Orders, Execution & Market Structure qualitative Algorithmic trading characterised by very short holding periods, very high order counts and competition on latency. Test: holding periods measured in milliseconds to seconds, with order-to-trade ratios far above those of ordinary participants

High-Yield Bond Bonds & Fixed Income qualitative A bond rated below investment grade, offering a higher coupon to compensate for higher default risk. Test: the rating is BB+ or lower on the standard scale

Hindsight Bias Market Psychology & Behavioural Finance qualitative The tendency to believe, after an event, that it was more predictable than it actually was. Test: recalled prior probability estimates shift toward the outcome that actually occurred

Historical Volatility Derivatives, Futures & Options % The realised standard deviation of an underlying's returns over a past period, annualised. Historical Volatility = Standard Deviation of Daily Log Returns x square root of 252, expressed as a percentage

Holding Company Corporate Actions, Dividends & Governance qualitative A company whose principal assets are controlling stakes in other companies rather than an operating business of its own. Test: the company controls the composition of another company's board or holds more than half its voting power

Home Bias Market Psychology & Behavioural Finance % The tendency to hold a far larger proportion of domestic assets than global market weights would suggest. Test: domestic allocation substantially exceeds the home market's share of global market capitalisation

Hot-Hand Fallacy Market Psychology & Behavioural Finance qualitative The belief that a run of successes will continue because the performer is on a streak. Test: the predicted probability of continued success rises with the length of a prior run of successes

House Money Effect Market Psychology & Behavioural Finance qualitative Taking greater risks with money regarded as winnings than with money regarded as one's own. Test: risk tolerance rises after gains, treating profits as a separate account with lower value

Hybrid Fund Funds, ETFs & Index Investing % A mutual fund that invests across both equity and debt, in proportions set by its stated category. Test: the scheme holds a defined mix of equity and debt, with the allocation range specified in the scheme document

Hyperbolic Discounting Market Psychology & Behavioural Finance qualitative Discounting future rewards at a rate that falls as the delay increases, producing inconsistent preferences over time. Test: preference between two future rewards reverses as both move closer in time, though the interval between them is unchanged

Iceberg Order Orders, Execution & Market Structure qualitative A large order that reveals only a small portion to the order book at a time, refreshing as each slice is filled. Test: total quantity exceeds the disclosed quantity, and a fresh slice enters the book only after the previous one is fully executed

Ichimoku Cloud Indicators & Oscillators ₹ A multi-line system plotting conversion and base lines, a shaded cloud projected forward, and a lagging span behind price. Conversion Line = (9-period High + Low) / 2; Base Line = (26-period High + Low) / 2; Leading Span A = average of those two, plotted 26 periods ahead; Leading Span B = (52-period High + Low) / 2, plotted 26 periods ahead

IDCW Option Funds, ETFs & Index Investing ₹ The plan option under which a fund periodically distributes part of the NAV to unit holders as income distribution cum capital withdrawal. Post-Payout NAV = Pre-Payout NAV - Amount Distributed per Unit

Illusion of Control Market Psychology & Behavioural Finance qualitative The belief that one can influence outcomes that are largely determined by chance. Test: confidence in a favourable outcome rises with involvement or effort, without any change in the actual probability

Immediate-or-Cancel Order Orders, Execution & Market Structure qualitative An order that executes whatever quantity is available at once and cancels the remainder rather than resting in the book. Test: any unfilled quantity is cancelled immediately on submission instead of joining the order book

Impact Cost Orders, Execution & Market Structure % The cost, expressed as a percentage, of executing a stated order size against the current order book relative to the mid price. Impact Cost % = (Actual Execution Price - Ideal Mid Price) / Ideal Mid Price x 100

Impairment Fundamental Analysis & Valuation ₹ crore A write-down of an asset's carrying value when its recoverable amount falls below what the balance sheet records. Impairment Loss = Carrying Amount - Recoverable Amount, where Recoverable Amount is the higher of fair value less costs to sell and value in use

Implied Volatility Derivatives, Futures & Options % The volatility figure that, put into an option pricing model, reproduces the option's current market price. Test: solve the pricing model for the volatility input that makes the model price equal the observed market price

In the Money Derivatives, Futures & Options qualitative An option that would have positive value if exercised immediately. Call: Spot > Strike; Put: Spot < Strike

iNAV Funds, ETFs & Index Investing ₹ The indicative net asset value of an ETF, computed and published continuously through the trading day. iNAV = (Live Value of the Underlying Basket + Cash Component) / Units Outstanding

Independent Director Corporate Actions, Dividends & Governance qualitative A board member with no material pecuniary relationship with the company, its promoters or its management. Test: the director meets the statutory independence criteria on relationships, remuneration and tenure, and is so declared annually

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