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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.

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Confluence

Technical analysis

Two or more independent methods marking the same price zone.

In plain terms

Mark the zones on a clean chart before you have a view. Hunt for them after choosing the trade and you will always find a retracement, an average or a round number within a couple of per cent.

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Option chain

Derivatives

The strike-by-strike table of open interest, change in open interest, volume and implied volatility for an underlying's options, published live and free by the NSE.

In plain terms

The strike with the largest call open interest often acts as resistance and the largest put strike as support, because writers hedging those positions generate real buying and selling. One source of confluence, not a forecast.

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Indian stock market glossary · Market Vidyalaya