Market Master Glossary

Financial terms, explained clearly.

Concise definitions connected to deeper guides, transparent tools, and practical next steps.

Position Sizing

The process of translating a predefined loss limit and stop distance into the number of shares, contracts, or units to trade.

A rolling average of price that smooths short-term fluctuations and helps describe trend direction.

The largest observed peak-to-trough decline over a selected history.

The market value of a company calculated by multiplying its share price by diluted shares outstanding.

A measure of how widely gains or losses are distributed across securities in a market.

An instruction to buy no higher than, or sell no lower than, a specified price.

The level of future variability embedded in an option price under a pricing model.

Cash generated after operating expenses and capital expenditure, available for debt reduction, reinvestment, dividends, or buybacks.

The annual operating cost of a fund expressed as a percentage of average assets.

A pooled investment vehicle that trades on an exchange and can hold stocks, bonds, commodities, or other assets.