Glossary
This glossary explains the trading words you meet in Indian markets, from stop-loss and lot size to open interest, max pain and the Greeks. Each term has a short definition and a line on where you use it in ZeroStake. Link to any term with its anchor, for example #stop-loss.
Market breadth
Advance-decline compares the number of stocks that rose with the number that fell. It shows how broad a market move is.
In ZeroStake: The Analyze tab shows advance-decline by sector for NSE or BSE, as a heatmap or a list. Analyze
AMO
An after-market order is an order you place when the market is closed. It waits and goes to the market when the next session opens.
In ZeroStake: Queue an AMO after the close. It goes in at the next open, and you can cancel it until then. Features
ATM
An option is at the money when its strike price is closest to the current price of the underlying.
In ZeroStake: One tap recentres the Option Chain on the ATM strike. Option Chain
Average True Range
ATR measures how much a price moves in an average candle. Traders use it to size stop-losses to the market.
In ZeroStake: Add ATR to the chart in Historical Replay. Historical Replay
NIFTY Bank
BANK NIFTY is an NSE index of the largest and most traded Indian bank stocks. Its options are among the most traded in India.
In ZeroStake: You can trade BANK NIFTY futures and options, read its Option Chain and replay its past sessions. NIFTY and BANK NIFTY paper trading
A basket order sends several orders together, such as the legs of an options strategy.
In ZeroStake: Send Option Chain legs as one basket, or save baskets that mix stocks, futures and options. Options paper trading
Bid-ask spread
The bid is the highest price a buyer offers now. The ask is the lowest price a seller accepts. The gap between them is the spread.
In ZeroStake: The Option Chain can show bid and ask columns, and market depth shows the buy and sell split. Option Chain
Bollinger Bands draw a moving average with one band above and one below it. The bands widen when price swings grow and narrow when the market is quiet.
In ZeroStake: Add Bollinger Bands to the chart in Historical Replay. Historical Replay
The breakeven is the price where a trade neither makes nor loses money. For an option buyer, it is the strike plus or minus the premium paid.
In ZeroStake: Strategy Builder shows every breakeven of your strategy on the payoff chart. Options paper trading
Brokerage is the fee a broker charges for each order. Taxes and exchange charges come on top of it.
In ZeroStake: Every trade shows estimated charges, and ZeroStake Pro lets you set your own broker's brokerage. P&L and Trade Journal
Long buildup, short buildup
Buildup compares price change with open interest change. Price and OI both up is long buildup; price down with OI up is short buildup.
In ZeroStake: The Option Chain can show buildup for each strike over 5 minutes, 15 minutes or a day. Option Chain
A bull call spread buys a call and sells a higher strike call on the same expiry. It costs less than one call, and both profit and loss have a limit.
In ZeroStake: Pick a bull call spread in Strategy Builder and see its payoff before you trade. Options paper trading
A butterfly uses three strikes to bet that the price stays near the middle strike. Both the maximum profit and the maximum loss have a limit.
In ZeroStake: Strategy Builder has the iron butterfly, a four-leg version built from calls and puts. Options paper trading
CE
A call option gives the buyer the right to buy the underlying at the strike price until expiry. Buyers gain when the price rises above the strike plus the premium.
In ZeroStake: Buy or sell calls from the Option Chain or in Historical Replay. Options paper trading
Change in OI is how much open interest grew or fell today. It shows whether traders open new positions or close old ones.
In ZeroStake: The Option Chain shows the change in OI for every call and put. Option Chain
Delta shows how much an option premium moves when the underlying moves by one point. A delta of 0.5 means about half a point.
In ZeroStake: Delta appears for each strike in the Option Chain and for the whole strategy in Strategy Builder. Option Chain
Drawdown is the fall from the highest point of your account to the lowest point after it. Maximum drawdown is the deepest of these falls.
In ZeroStake: The P&L review shows your drawdown from your closed trades. P&L and Trade Journal
Exponential Moving Average
An EMA is a moving average that gives more weight to recent prices. It reacts faster than a simple moving average.
In ZeroStake: Add EMA or EMA Cross to the chart in Historical Replay. Historical Replay
Expectancy is the average amount you make or lose per trade. Positive expectancy means your wins outweigh your losses over many trades.
In ZeroStake: The P&L review works out your expectancy from your closed trades. P&L and Trade Journal
Expiry is the last day a futures or options contract trades. After it, the contract settles and ends.
In ZeroStake: Pick the expiry at the top of the Option Chain. Option Chain
Futures and options
F&O is the derivatives segment of the market. It covers futures and options on indices, stocks and commodities.
In ZeroStake: Practise index and stock F&O on NSE and BSE, and MCX futures and options. Options paper trading
Foreign and domestic institutional investors
FIIs are foreign institutions that invest in India. DIIs are Indian institutions such as mutual funds and insurers. Their daily net buying or selling can move the market.
In ZeroStake: The Analyze tab shows daily FII and DII data for cash, index F&O and stock F&O. Analyze
A futures contract is an agreement to buy or sell an asset at a set price on a future date. Futures trade in lots and need margin.
In ZeroStake: Trade index, stock and MCX futures with virtual money, or replay past index futures sessions. Trade on Chart
Gamma shows how fast delta changes when the underlying moves. Gamma is highest for at-the-money options near expiry.
In ZeroStake: Gamma appears in the Option Chain and in Strategy Builder. Option Chain
Good Till Triggered
A GTT order waits for a trigger price that you set. When the price reaches the trigger, the order goes to the market. It stays active until it triggers or expires.
In ZeroStake: A GTT trigger waits up to 7 days, and its exits can be SL-M, SL-L, TGT-M or TGT-L. Trade on Chart
IV
Implied volatility is the size of move that option prices expect. High IV makes options expensive, and low IV makes them cheap.
In ZeroStake: The Option Chain shows IV for each strike. Option Chain
ITM
A call is in the money when the price is above its strike. A put is in the money when the price is below its strike.
In ZeroStake: Compare in-the-money strikes with the ATM strike in the Option Chain. Option Chain
MIS
An intraday trade opens and closes on the same day. Brokers close open intraday positions near the end of the session.
In ZeroStake: Pick intraday when you place the order. Open intraday positions are squared off near the close, as with a broker. Trade on Chart
An iron condor sells a call spread and a put spread around the current price. It gains when the price stays in a range, and both profit and loss have a limit.
In ZeroStake: Build an iron condor in Strategy Builder and read its breakevens first. Options paper trading
A limit order buys or sells only at your price or better. It may wait or never fill.
In ZeroStake: Set a limit entry line on the chart to wait for your price. Trade on Chart
The lot size is the fixed number of units in one futures or options contract. You trade F&O in whole lots.
In ZeroStake: Trade on Chart shows the lots of your position and the margin it needs. Trade on Chart
Moving Average Convergence Divergence
MACD compares two EMAs to show the strength and direction of a trend. Traders watch where the MACD line crosses its signal line.
In ZeroStake: Add MACD to the chart in Historical Replay. Historical Replay
Margin is the money you must block to open a futures or short options position. It covers the risk of the trade.
In ZeroStake: Trade on Chart shows the margin the trade needs from your virtual money. Trade on Chart
Market depth lists the top bid and ask prices with the quantity at each level. It shows how much buying and selling waits near the price.
In ZeroStake: Open a stock to see the buy and sell split. ZeroStake Pro adds the full bid and ask levels. Features
A market order buys or sells at the current market price. It fills fast, but the price is not fixed.
In ZeroStake: Tap Buy or Sell on the chart to place a market order. Trade on Chart
Historical replay
Market replay plays a past session candle by candle. You trade it as if it were happening now.
In ZeroStake: Historical Replay plays past NIFTY 50, BANK NIFTY and SENSEX F&O sessions at up to 24x. Historical Replay
Max pain is the strike where option buyers as a group would lose the most at expiry. Some traders watch it near expiry, but it does not predict the close.
In ZeroStake: The Option Chain shows max pain for the selected expiry. Option Chain
Multi Commodity Exchange
MCX is the main commodity derivatives exchange in India. It lists futures and options on energy, metals and more.
In ZeroStake: Trade MCX futures and options, with option chains for six commodities. Option Chain
NIFTY 50 is the main NSE index. It tracks 50 large Indian companies across sectors.
In ZeroStake: Trade NIFTY futures and options, read its Option Chain and replay its past sessions. NIFTY and BANK NIFTY paper trading
OI
Open interest is the number of futures or options contracts that are open and not yet closed. High OI at a strike often marks a level traders watch.
In ZeroStake: The Option Chain shows OI for each call and put strike. Option Chain
An option chain lists all calls and puts of an underlying for one expiry, strike by strike. It shows price, OI, volume and IV for each.
In ZeroStake: ZeroStake has option chains for 5 indices and 6 MCX commodities. Option Chain
An option gives the buyer a right, not a duty, to buy or sell at a set price before expiry. The buyer pays a premium; the seller takes the premium and the risk.
In ZeroStake: Trade index, stock and MCX options from the Option Chain or the Strategy Builder. Options paper trading
OTM
A call is out of the money when the price is below its strike. A put is out of the money when the price is above its strike. OTM options hold only time value.
In ZeroStake: Compare OTM strikes in the Option Chain before you pick one. Option Chain
Virtual trading
Paper trading is practice trading with virtual money. You place orders on market prices, but no real money moves.
In ZeroStake: ZeroStake is a paper trading app for NSE, BSE and MCX. Paper trading app India
Parabolic SAR puts dots above or below the price to show the trend. When the dots flip sides, the trend may change.
In ZeroStake: Add Parabolic SAR to the chart in Historical Replay. Historical Replay
A partial fill is when only part of your order quantity trades at first. The rest trades later, at other prices, or not at all.
In ZeroStake: Turn on LiveFill, and your orders can fill in parts. Features
Pivot points are levels worked out from the last session's high, low and close. Traders use them as possible support and resistance.
In ZeroStake: Add Pivot Points to the chart in Historical Replay. Historical Replay
The premium is the price of an option. The buyer pays it and the seller receives it.
In ZeroStake: The Option Chain shows the premium of each call and put. Option Chain
Profit factor is your total profit divided by your total loss. A value above 1 means you made more than you lost.
In ZeroStake: The P&L review shows your profit factor. P&L and Trade Journal
PE
A put option gives the buyer the right to sell the underlying at the strike price until expiry. Buyers gain when the price falls below the strike minus the premium.
In ZeroStake: Buy or sell puts from the Option Chain or in Historical Replay. Options paper trading
PCR
The put-call ratio divides the open interest of puts by the open interest of calls. It shows the balance of positions, and traders read it in different ways.
In ZeroStake: The Option Chain shows PCR for the selected expiry. Option Chain
Relative Strength Index
RSI measures the speed of recent price moves on a scale of 0 to 100. Above 70 is often called overbought, and below 30 oversold.
In ZeroStake: Add RSI to the chart in Historical Replay. Historical Replay
SENSEX is the main BSE index. It tracks 30 large Indian companies.
In ZeroStake: Trade SENSEX futures and options, read its Option Chain and replay its past sessions. Historical Replay
Slippage is the gap between the price you expect and the price you get. It grows in fast or thin markets.
In ZeroStake: By default, orders fill at the last price. Turn on LiveFill, and fills can slip, more so on a harder level. How the simulator works
Simple Moving Average
An SMA is the average closing price over a set number of candles. It smooths the price to show the trend.
In ZeroStake: Add SMA to the chart in Historical Replay. Historical Replay
SL
A stop-loss is an order that closes your trade when the price moves against you to a set level. It limits the loss on one trade.
In ZeroStake: Drag the SL handle on the chart to set your stop-loss. Trade on Chart
A straddle buys or sells a call and a put at the same strike and expiry. A long straddle gains from a big move in either direction.
In ZeroStake: Build long or short straddles in Strategy Builder. Options paper trading
A strangle uses a call and a put at different strikes, both out of the money. It costs less than a straddle but needs a bigger move.
In ZeroStake: Build long or short strangles in Strategy Builder. Options paper trading
The strike price is the fixed price at which an option buyer can buy or sell the underlying.
In ZeroStake: Each row of the Option Chain is one strike price. Option Chain
Supertrend draws one line below the price in an uptrend and above it in a downtrend. It uses ATR to set the distance.
In ZeroStake: Add Supertrend to the chart in Historical Replay. Historical Replay
TGT
A target is the price where you plan to book your profit. A target order closes the trade when the price reaches it.
In ZeroStake: Drag the TGT handle on the chart to set your target. Trade on Chart
Theta is how much an option premium falls each day as time passes. Time decay grows fast near expiry.
In ZeroStake: Theta appears in the Option Chain and in Strategy Builder. Option Chain
TSL
A trailing stop-loss moves with the price when the trade goes your way and stays put when it does not. It protects a part of your gain.
In ZeroStake: In Trade on Chart, tap the stop-loss, tap its pencil and turn on Trailing SL. Trade on Chart
Vega shows how much an option premium changes when implied volatility moves by one point.
In ZeroStake: Vega appears in the Option Chain and in Strategy Builder. Option Chain
Volume Weighted Average Price
VWAP is the average price of the day, weighted by volume. Intraday traders use it as a fair value line.
In ZeroStake: Add VWAP to the chart in Historical Replay. Historical Replay
Win rate is the share of your trades that made money. A high win rate can still lose money if the losses are large.
In ZeroStake: The P&L review shows your win rate and your day win rate. P&L and Trade Journal
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