1. Alpha

Extra return you make above the market’s return.

2. Beta

Shows how risky a stock is compared to the market.

3. Sharpe Ratio

Tells if your returns are worth the risk you took.

4. Standard Deviation

Measures how much a stock’s price moves away from its average.

5. Arbitrage

Risk-free profit by buying in one market and selling in another instantly.

6. Hedging

Protecting yourself from losses by taking an opposite position.

7. Futures

An agreement to buy or sell something at a fixed price in the future.

8. Options

A contract that gives you the right, but not the obligation, to buy/sell something at a set price.

9. Call Option

Right to buy an asset at a fixed price.

10. Put Option

Right to sell an asset at a fixed price.

11. Strike Price

The pre-decided price used in options.

12. Premium

The price you pay to buy an options contract.

13. Open Interest

Number of active futures and options contracts in the market.

14. Gamma

How fast the delta of an option changes when price moves.

15. Delta

How much an option’s price will move if the stock moves ₹1.

16. Theta

How much an option’s price decreases as time passes (time decay).

17. Vega

How sensitive an option is to volatility.

18. Intrinsic Value

Actual value of an option if exercised now.

19. Time Value

Extra amount you pay for time left until option expiry.

20. Margin

Money you must keep with your broker to trade futures/options.

21. Mark-to-Market (MTM)

Daily profit/loss adjustment in futures trading.

22. Short Selling

Selling shares you don’t own — you borrow and sell, hoping price falls.

23. Short Covering

Buying back the shares you shorted earlier.

24. Algo Trading

Computer-based automatic trading using algorithms.

25. High-Frequency Trading (HFT)

Ultra-fast trading using powerful computers.

26. Block Deal

Large-volume trade done between two big investors at a fixed price.

27. Bulk Deal

Any trade exceeding 0.5% of a company’s total shares.

28. Promoter Pledge

Promoters use their shares as loan collateral.

29. Buy on Dips

Buying when price falls within an uptrend.

30. Sell on Rise

Selling when price rises within a downtrend.

31. Sector Rotation

Moving money from one sector to another as the economy changes.

32. Yield Curve

Shows interest rates for different time periods — used to predict recession.

33. Quantitative Easing (QE)

Government pumps money into the economy to boost growth.

34. Quantitative Tightening (QT)

Government removes liquidity from the economy.

35. Market Breadth

Shows how many stocks are rising vs falling — tells market strength.

36. Float

Shares available to trade in the open market (excluding locked shares).

37. Free Cash Flow

Cash left after paying all expenses — indicates real business strength.

38. EBITDA

Earnings before interest, taxes, depreciation, and amortization — shows core profit.

39. Cash Conversion Cycle

Time taken to convert goods into cash.

40. Insider Trading

Illegal trading based on non-public company information.

41. Corporate Governance

How honestly and efficiently a company is run.

42. SPAC

A company formed only to buy another company and take it public.

43. Unicorn

A startup valued at over $1 billion.

44. Moat

Company’s competitive advantage that protects it from rivals.

45. Drawdown

The fall from your portfolio’s highest value.

46. Risk-Adjusted Return

Return calculated after considering risk taken.

47. Dead Cat Bounce

Temporary price rise in a falling stock — a trap.

48. Reversal

When a trend (up or down) changes direction.

49. Consolidation

Stock moves in a small range before a big breakout.

50. Breakout

Price moves strongly above resistance or below support — fresh trend begins.