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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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Divergence risk

Technical analysis

In a pairs trade, the risk that the spread keeps widening because the relationship between the two legs has genuinely changed.

In plain terms

The failure mode that erases many winners: you lose on both legs at once, and the short leg's loss is theoretically unbounded.

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Indian stock market glossary · Market Vidyalaya