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1492 terms

Glossary

Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.

Showing 7 terms

Closing price

Trading & orders

On Indian exchanges, the volume-weighted average price of the final thirty minutes of the session — not the last trade.

In plain terms

Designed so that one late trade cannot set the close, which makes manipulation substantially harder. It is also why a close beyond a level counts for more than a touch.

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200-day moving average

Technical analysis
Also called: 200-DMA

The average closing price over roughly one trading year.

In plain terms

The market’s shared definition of "long-term trend". Best used as an on/off regime switch.

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Close-out rate

Trading & orders

The formula price at which a failed delivery is settled in cash when the auction finds no seller — the higher of the highest traded price from the trade day to the auction day, and the auction-day closing price plus 20%.

In plain terms

Written to sit above the market so that failing to deliver is never the cheaper option. In an illiquid stock, where auctions most often find nobody, the penal 20% is usually the binding term.

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Line chart

Technical analysis

A chart that plots closing prices only, joined into a single continuous line.

In plain terms

It discards the open, high and low, which is the point. Good for overall shape and for comparing several stocks at once; useless for reading who won the session.

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Moving average

Technical analysis
Also called: SMA, EMA, DMA

The average of the last N closing prices, plotted as a line.

In plain terms

Smoothing. Smoother always means slower — that trade-off has no escape.

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Post-closing session

Trading & orders

A short window after the regular session in which orders may be entered at the closing price once that price has been determined.

In plain terms

The honest answer to "can I actually trade the close". It needs your broker to offer it and somebody on the other side, which in a thin name often means nobody is.

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Reversal

Technical analysis

A change in the prevailing direction of price.

In plain terms

Judge it on closing prices, not on wicks. Intraday probes through obvious levels are routine.

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Indian stock market glossary · Market Vidyalaya