Term
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Definition
| Status of any option not closed or exercised, but allowed to expire worthless. |
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Term
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Definition
| Any outcome from a trade or investment either above or below the expected return. |
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Term
| Absolute breadth index (ABI) |
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Definition
| A technical indicator used to track volatility without regard to price direction. The difference between advancing and declining issues is the key factor in ABI, on the theory that larger gaps between the advance/decline imply greater volatility in near-future prices. |
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Term
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Definition
| (a)Holdings in securities positions, including reinvested capital gains and dividends; (b) large purchases of stock by institutional investors; (c) retention of net profits from operations to expand markets, versus paying out dividends. |
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Term
| Accumulation/distribution |
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Definition
| Technical indicator tracking momentum to determine whether buyers or sellers are dominant. Formula: ((close-low)-(high-close))/volume |
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Term
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Definition
| Technical indicator descriptive of the price range in which prices do not drop, anticipating near-term increased buyer activity. |
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Term
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Definition
| Alternate term for the quick assets ratio; the current ratio excluding inventory. Formula; (current assets-inventory)/current liabilites |
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Term
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Definition
| A market experiencing higher than average levels of volume. |
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Term
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Definition
| Commodities underlying specific futures contracts or options on futures. |
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Term
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Definition
| The basis in stock, reduced by profits or increased by losses in covered call trades. |
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Term
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Definition
| Changes in value, such as stock splits or stock dividends, requiring adjustment in option valuation. |
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Term
| Advance/decline line (AD) |
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Definition
| A technical indicator summarizing the difference between advancing and declining issues and accumulating the trend. Formula; (advances-declines) + previous AD value. |
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Term
| After-tax breakeven point |
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Definition
| Net profit after deducting tax liabilities, including federal and state income taxes applicable to investment profits. |
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Term
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Definition
| The exchange of futures for cash, arranged between two hedgers. |
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Term
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Definition
| A multi-contract option specifying that the entire transaction has to be filled and that no partial orders are acceptable. |
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Term
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Definition
| The creation of a channel or band consisting of two trend lines, one above and one below a moving average; this provides an averaging of price ranges, used in technical analysis. |
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