Trading terms, explained in a sentence

120 terms, each with a plain definition and an Indian example. The Hindi phrase is there where one is in common use.

Basics: 58 Charts: 22 Options: 14 Risk: 16 Psychology: 4 Forex: 6

5

52-week high and lowsaal ka sabse ooncha aur sabse neecha bhav: The highest and lowest prices a stock has traded at during the last 52 weeks, used to judge where the current price sits in its yearly range.

A

After-market order (AMO)market band hone ke baad lagaya gaya order: An order placed after market hours that the broker holds and sends to the exchange when the next trading session opens.
Algo tradingcomputer program se automatic trading: Trading where a computer program places orders automatically based on pre-set rules, without a person clicking buy or sell each time.
Ask pricebechne wale ka bhav: The lowest price at which a seller is currently willing to sell a share; the price you pay if you buy immediately with a market order.
ATR (Average True Range)roz ka average utaar-chadhav: An indicator that measures how much a stock typically moves in a period, used to size stop losses and positions to the stock's volatility.

B

Backtestingpurane data par strategy ka test: Testing a trading rule on historical price data to see how it would have performed before risking real money on it.
Bank Niftybanking sector ka index: NSE's index of the largest and most liquid Indian banking stocks, and one of the most actively traded index derivatives in the country.
Bid pricekharidne wale ka bhav: The highest price a buyer is currently willing to pay for a share; the price you receive if you sell immediately with a market order.
Blue-chip stockbadi, bharosemand company ka share: Shares of large, established companies with long operating histories and stable earnings, such as the biggest names in Nifty 50.
Bollinger Bandsprice ke upar-neeche ke bands: Three lines around price: a moving average plus upper and lower bands set by standard deviation, showing whether volatility is expanding or shrinking.
Bracket ordertarget aur stop loss ke saath ek order: An intraday order that places the entry, a target and a stop loss together, so the exit is defined before the trade begins.
Breakoutresistance ko todkar upar jaana: When price moves decisively through a resistance or support level that had held earlier, often with rising volume.
Brokeragebroker ki fees: The fee a broker charges for executing your buy or sell order, charged as a flat amount per order or a percentage of trade value.
BSEBombay Stock Exchange, Dalal Street wala exchange: The Bombay Stock Exchange, Asia's oldest stock exchange, based in Mumbai and home of the Sensex index.

C

Call optionkharidne ka haq, farz nahi: A contract that gives the buyer the right, but not the obligation, to buy the underlying at a fixed strike price before or at expiry.
Candlestickprice chart ki mombatti jaisi shakal: A chart bar showing a period's open, high, low and close as a body and wicks, coloured by whether price closed above or below its open.
Circuit limitek din mein price kitna upar-neeche ja sakta hai, uski seema: The maximum percentage a stock or index can move in a session before the exchange halts trading or stops accepting orders beyond that price.
Contract notehar trade ka official bill: The legal document your broker sends after each trading day listing every trade, its price, brokerage, taxes and charges.
Cover ordercompulsory stop loss wala intraday order: An intraday order where the entry is placed together with a compulsory stop loss, so the maximum loss is defined from the start.
Currency derivativesNSE par currency ka legal futures aur options: Exchange-traded futures and options on INR currency pairs such as USD/INR, the only legal way for Indian residents to trade forex.
Currency pairdo currencies ka bhav, jaise USD/INR: A quote showing how much of one currency buys one unit of another, such as USD/INR, the exchange rate between the US dollar and the rupee.

D

Deliveryshare kharid kar demat mein rakhna: Buying shares and holding them beyond the trading day, so they are transferred into your demat account, as opposed to intraday trading.
Deltaunderlying ke ek rupee move par option kitna hilega: An option Greek showing roughly how much the option's premium changes for a one-rupee move in the underlying price.
Demat accountshares rakhne ka electronic account: An account that holds your shares and securities in electronic form, opened through a depository participant and linked to your trading account.
Demat DP chargesshare bechne par lagne wala depository charge: A fee your depository participant charges each time shares leave your demat account on a sale, regardless of how many shares are sold.
DIIdesi bade investors, jaise LIC aur mutual funds: Domestic Institutional Investors: Indian mutual funds, insurance companies, banks and pension funds that invest large sums in the stock market.
Dividendcompany ke munafe mein se shareholder ko hissa: A share of a company's profit paid out in cash to shareholders, usually per share, announced by the board and approved by shareholders.
Dojiopen aur close lagbhag same, ek line jaisi candle: A candlestick whose open and close are almost equal, leaving a very small body, which shows indecision between buyers and sellers.
Double bottomW shape ka chart pattern: A chart pattern where price falls to a low, bounces, falls again to roughly the same level and rises, forming a W that can signal a bottom.
Double topM shape ka chart pattern: A chart pattern where price rises to a high, dips, rises to roughly the same high and falls, forming an M that can signal a top.
Drawdownpeak se kitna neeche gaya account: The fall in your trading account from its highest point to a later low, measured in rupees or percent, showing how much pain a strategy inflicts.

E

Engulfing patternbadi candle jo pichli candle ko poori dhak le: A two-candle pattern where the second candle's body completely covers the first's in the opposite colour, hinting at a shift in control.
ETFexchange par share ki tarah trade hone wala fund: An exchange-traded fund: a fund that holds a basket of assets, such as the Nifty 50 stocks or gold, and trades on the exchange like a share.
Expectancyhar trade se average mein kitna milega ya jayega: The average rupee amount a trading strategy makes or loses per trade over many trades, combining win rate with average win and average loss.
Expirycontract khatam hone ki tareekh: The last day a futures or options contract is valid, after which it is settled and ceases to exist.

F

FEMAvideshi mudra ka kanoon: The Foreign Exchange Management Act, 1999, the Indian law governing foreign currency transactions and the reason overseas forex trading is restricted.
Fibonacci retracementFibonacci levels se pullback napna: Horizontal levels drawn between a swing high and swing low at ratios such as 38.2%, 50% and 61.8%, used to estimate where a pullback might pause.
FIIvideshi bade investors: Foreign Institutional Investors, now called FPIs: overseas funds and institutions that buy and sell Indian stocks and strongly influence the market.
FOMOchhoot jaane ka darr: Fear of missing out: the urge to jump into a trade because the price is already running and others seem to be making money.
Forward testinglive market mein bina paise lagaye strategy check karna: Running a trading strategy in real time on paper or with tiny size after backtesting, to confirm it still works with live prices and real emotions.
Futurestay bhav par aage ki tareekh ka sauda: A contract to buy or sell an asset such as Nifty or SBI shares at a fixed price on a future date, traded in lots with margin.

G

Gap downpichle close se neeche khulna: When a stock or index opens well below the previous session's close, leaving an empty space on the chart, usually on overnight bad news.
Gap uppichle close se upar khulna: When a stock or index opens well above the previous session's close, leaving an empty space on the chart, usually on overnight good news.
GTT ordertrigger price lagao, order mahino tak valid rahe: Good Till Triggered: an order that stays live for a long period and is sent to the exchange only when your chosen trigger price is reached.

H

Hammerlambi neeche wali wick, chhota body, hathoda jaisa: A candlestick with a small body near the top and a long lower wick, appearing after a decline, which suggests sellers were rejected.
Head and shouldersteen chotiyon wala reversal pattern: A reversal pattern with three peaks, the middle one highest, and a neckline below; a close under the neckline suggests the uptrend is ending.
Hedgingnuksan se bachne ke liye ulta sauda: Taking a second position that offsets the risk of an existing one, such as buying a put option to protect a portfolio of shares against a fall.

I

Implied volatilityoption price mein chhupi hui expected halchal: The market's expectation of how much the underlying will move, worked backwards from option prices; higher IV means costlier options.
Index fundNifty jaise index ki copy karne wala mutual fund: A mutual fund that simply copies an index such as Nifty 50, holding the same stocks in the same weights, with low fees and no stock picking.
India VIXNifty ka darr ka meter: NSE's volatility index showing the expected annualised movement in Nifty over the next 30 days, derived from Nifty option prices.
Intradayusi din kharidna aur bechna: Buying and selling the same shares within one trading session, so no position is carried overnight and nothing reaches your demat account.
IPOcompany pehli baar public ko share bech rahi hai: Initial public offering: the first sale of a company's shares to the public, after which the shares list and trade on the stock exchange.

K

KYCapni pehchaan verify karana: Know Your Customer: the identity and address verification you complete with PAN, Aadhaar and bank details before opening a trading or demat account.

L

Large capsabse badi companies: The 100 largest listed companies in India by market capitalisation, as ranked by AMFI, such as Reliance, TCS, HDFC Bank and SBI.
Leverageudhaar lekar bada sauda: Controlling a position larger than your own capital by putting up only a margin, which multiplies both gains and losses.
Limit orderapni price par kharidne ya bechne ka order: An order to buy or sell only at a price you specify or better; it waits in the order book until the market reaches that price.
Liquidityshare aasani se kharid-bech sakte hain ya nahi: How easily and quickly an asset can be bought or sold at a stable price; high liquidity means many buyers and sellers and tight spreads.
Lot sizeek contract mein kitne shares: The fixed number of units in one futures or options contract, set by the exchange; you can trade only in multiples of this quantity.
Lower circuitdin ki neechli seema, sirf sellers bache: The lowest price a stock is allowed to trade at in a session; when hit, sell orders pile up with no buyers and trading effectively freezes.
LRSvidesh paisa bhejne ki RBI scheme: The Liberalised Remittance Scheme, which lets Indian residents send up to a set amount abroad each year for permitted uses, not for margin forex trading.
LTCGlambe samay tak rakhe shares par tax: Long-term capital gains: profit on listed shares or equity funds held for more than 12 months, taxed at a concessional rate above an annual exemption.
LTPaakhri trade ka bhav: Last traded price: the price at which the most recent trade in a stock was executed, which is the number shown on most screens and apps.

M

MACDdo moving averages ka farak dikhane wala indicator: Moving Average Convergence Divergence: an indicator built from the gap between two exponential moving averages, used to gauge trend momentum and its shifts.
Marginsauda karne ke liye jama ki gayi rakam: The money you must deposit with the broker to open and hold a leveraged position, such as a futures contract or an intraday trade.
Margin callbroker ka paisa bharne ka notice: A demand from your broker to add funds when losses have reduced your margin below the required level, failing which positions are squared off.
Market capcompany ki total market value: Market capitalisation: a company's total market value, calculated as the share price multiplied by the number of shares outstanding.
Market orderjo bhi bhav mile, turant sauda: An order to buy or sell immediately at the best available price in the order book, prioritising speed of execution over price.
Mid capbeech ke size ki companies: Companies ranked 101 to 250 by market capitalisation in AMFI's list; larger than small caps, more volatile than large caps.
Moving averagepichle kuch din ke bhav ka average line: A line showing the average closing price over a set number of periods, such as 20 or 50 days, used to smooth noise and see the trend.
MTMroz ka profit-loss settle karna: Mark-to-market: the daily process of settling the profit or loss on open futures positions in cash based on that day's closing price.
Mutual fundsabka paisa jod kar professional manager ke through invest: A pooled investment run by a fund house that collects money from many investors and invests it in shares, bonds or both according to a stated objective.

N

Nifty 50NSE ki top 50 companies ka index: NSE's benchmark index of 50 large, liquid Indian companies across sectors, weighted by free-float market cap; the most-traded index in India.
NSENational Stock Exchange, India ka sabse bada exchange: The National Stock Exchange of India, based in Mumbai, home of Nifty 50 and the exchange where most Indian equity and derivatives volume trades.

O

Open interestkitne contracts abhi khule hain: The total number of outstanding futures or options contracts that have not been closed or expired, showing how much money is committed at each strike.
Option chainsab strikes ke calls aur puts ki table: A table listing every available strike price for an underlying with the premium, open interest, volume and implied volatility of each call and put.
Order booksab pending buy-sell orders ki list: The live list of pending buy and sell orders for a stock at each price, showing market depth and where supply and demand actually sit.
Overtradingzaroorat se zyada trades lena: Taking far more trades than your plan calls for, out of boredom, excitement or the urge to recover, which multiplies costs and mistakes.

P

Paper tradingnakli paise se practice: Practising a strategy with simulated money, recording entries and exits at real market prices, to learn the process before risking capital.
PE ratioshare ka bhav, per share kamai ke mukable: Price-to-earnings ratio: the share price divided by earnings per share, showing how many rupees investors pay for each rupee of annual profit.
Pipcurrency rate ka sabse chhota badlav: The smallest standard price movement in a currency pair; for USD/INR futures on Indian exchanges, one tick is 0.0025 rupee per dollar.
Pledgingshares girvi rakh kar margin lena: Using shares or funds in your demat account as collateral to get trading margin from your broker, without selling them.
Position sizeek trade mein kitne shares ya lots lene hain: The number of shares or lots you trade, calculated from how many rupees you are willing to lose and the distance to your stop loss.
Positional tradingkai din ya hafton tak position rakhna: Holding a trade for several days to a few weeks, usually based on daily charts and larger trends, between swing trading and long-term investing.
Pre-market session9:00 se 9:15 tak ka opening session: The 15-minute window from 9:00 to 9:15 AM on NSE and BSE when orders are collected and matched to discover the opening price before regular trading.
Premiumoption kharidne ki keemat: The price paid by an option buyer and received by the seller for the contract, quoted per share and multiplied by the lot size for the actual cost.
Put optionbechne ka haq, farz nahi: A contract that gives the buyer the right, but not the obligation, to sell the underlying at a fixed strike price before or at expiry.

R

RBIReserve Bank of India, desh ka central bank: The Reserve Bank of India, the central bank that sets interest rates, manages the rupee and decides what forex trading Indian residents may legally do.
Resistanceupar ki rukawat, jahan sellers aa jaate hain: A price level where a stock has repeatedly stopped rising because sellers appear, acting like a ceiling until it is broken.
Revenge tradingnuksan ka badla lene ke liye trade karna: Jumping straight back into the market after a loss to win the money back, usually with bigger size and no plan, which deepens the loss.
Risk managementnuksan ko seema mein rakhne ka tareeka: The set of rules that limit how much you can lose per trade, per day and overall, so that a run of losses cannot end your trading.
Risk-reward ratiokitna risk lekar kitna target: The comparison between what you stand to lose if the stop loss hits and what you aim to gain at the target, such as risking ₹10 to make ₹20.
RSIshare overbought hai ya oversold, 0 se 100 ka meter: Relative Strength Index: a momentum oscillator from 0 to 100 comparing recent gains with recent losses; above 70 is called overbought, below 30 oversold.

S

Scalpingchhote-chhote profit ke liye bahut saare fast trades: A style of intraday trading that aims for very small gains on many quick trades, holding positions for seconds to minutes.
SEBIshare market ka regulator: The Securities and Exchange Board of India, the regulator of stock exchanges, brokers, mutual funds and advisers, whose rules protect investors.
Sector rotationpaisa ek sector se doosre sector mein jaana: The shift of money from one industry group to another as the economic cycle or market mood changes, such as from IT stocks into banks.
SensexBSE ki top 30 companies ka index: BSE's benchmark index of 30 large, well-established companies, the oldest widely followed stock market indicator in India.
Short sellingpehle bechna, baad mein kharidna: Selling shares you do not own, expecting to buy them back cheaper; in Indian cash equities this is allowed only within the same day.
SIPhar mahine fixed rakam invest karna: Systematic Investment Plan: investing a fixed amount into a mutual fund at regular intervals, usually monthly, regardless of the market level.
Slippagejo bhav chaha aur jo mila, uska farak: The difference between the price you expected a trade to fill at and the price it actually filled at, usually worse in fast or illiquid markets.
Small capchhoti companies, zyada risk: Companies ranked 251st and below by market capitalisation in AMFI's list; the largest group of listed stocks and the most volatile and least liquid.
Spreadbid aur ask ke beech ka farak: The difference between the best bid and the best ask price; a hidden cost of every trade that is small in liquid stocks and large in illiquid ones.
Square offkhula sauda band karna: Closing an open position by taking the opposite trade: selling what you bought or buying back what you sold short.
STCGkam samay ke shares par tax: Short-term capital gains: profit on listed shares or equity funds sold within 12 months of purchase, taxed at a flat rate higher than long-term gains.
Stock splitek share ko kai chhote shares mein todna: A corporate action that divides each share into several shares of lower face value, cutting the price proportionally without changing the company's value.
Stop lossnuksan rokne ka order: A pre-set order that closes your position if price moves against you to a chosen level, capping the loss on a trade before it grows.
Strike priceoption ka tay bhav: The fixed price at which an option's buyer can buy (call) or sell (put) the underlying, chosen from the list the exchange offers for each expiry.
STThar share trade par sarkari tax: Securities Transaction Tax: a tax the government collects on every equity and derivatives trade on the exchange, deducted automatically by the broker.
Supportneeche ka sahara, jahan buyers aa jaate hain: A price level where a falling stock has repeatedly stopped and bounced because buyers step in, acting like a floor until it breaks.
Swing tradingkuch dinon ka trade, ek move pakadne ke liye: Holding a position for a few days to a couple of weeks to capture one swing in price, using daily charts and defined stops.

T

T+1 settlementtrade ke agle din shares ya paisa aana: The settlement cycle on Indian exchanges where shares and money change hands one working day after the trade date.
Thetahar din option ki keemat kitni ghat rahi hai: An option Greek measuring how much premium an option loses each day from the passage of time alone, with other factors unchanged.
Tick sizeprice ka sabse chhota step: The smallest increment by which a price can move on the exchange, such as 5 paise for most NSE equities or 0.0025 for USD/INR futures.
Trading journalhar trade ka record aur uska kaaran: A written record of every trade with the reason for entry, stop, target, result and what you felt, used to find and fix repeating mistakes.
Trailing stop lossprofit ke saath upar sarkne wala stop loss: A stop loss that moves in your favour as the price moves, locking in gains while still allowing the trade room to run.
Trendbhav ki overall disha: The general direction of price over a period: higher highs and higher lows in an uptrend, lower highs and lower lows in a downtrend.

U

Upper circuitdin ki oopri seema, sirf buyers bache: The highest price a stock is allowed to trade at in a session; when hit, buy orders pile up with no sellers and trading effectively freezes.

V

Volatilitybhav kitna aur kitni tezi se hilta hai: How much and how fast a price moves over time; high volatility means large swings in both directions and larger potential losses.
Volumekitne shares ka sauda hua: The number of shares or contracts traded in a period; rising volume shows participation and helps confirm whether a price move is genuine.
VWAPdin ka volume ke hisaab se average bhav: Volume-weighted average price: the average price a stock has traded at during the day, weighted by the volume at each price, used as an intraday benchmark.

W

Win ratekitne percent trades profit mein band hue: The percentage of your trades that end in profit; important only when combined with the size of average wins and losses.

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