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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

ITR

Regulation & tax
Also called: Income tax return

The income tax return — ITR-1 for salary alone, ITR-2 once there are capital gains from shares or funds, ITR-3 where intraday or F&O activity makes it business income.

In plain terms

Delivery trades produce capital gains; intraday and F&O produce business income, taxed at slab and carrying audit thresholds. A few casual intraday trades genuinely change which form you file.

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Arbitration

Regulation & tax

A binding dispute-resolution stage reached through the online dispute resolution mechanism once conciliation has failed.

In plain terms

Binding, far cheaper than court, and measured in months where a civil suit is measured in years. What it runs on is the paper trail you kept.

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Regulatory arbitrage

Regulation & tax

Structuring a product so it falls outside the rules that would apply to its regulated equivalent.

In plain terms

Not always sinister and always worth noticing. The question is which protections you gave up in exchange for the convenience.

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ODR

Regulation & tax
Also called: Online Dispute Resolution

Online Dispute Resolution — the online route for conciliation and then arbitration of an investor's dispute with a market intermediary.

In plain terms

The stage after SCORES and before the courts. Binding, far cheaper than litigation, and it exists precisely because a civil suit is not a realistic remedy for a ₹40,000 dispute.

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Efficient market

Technical analysis

The claim that prices already reflect available information, so no repeatable pattern in past prices can be exploited.

In plain terms

The strongest objection to technical analysis, and it holds in part: simple published systems do decay once everyone can see them. What does not get arbitraged away is the discipline to follow a rule consistently.

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Point and figure

Technical analysis

A chart type that plots columns of rising and falling boxes, ignoring time entirely and recording only price moves larger than a chosen box size.

In plain terms

Clean very-long-term structure and unambiguous breakouts, at the cost of the same box-size arbitrariness as Renko. Little used now.

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RS line

Technical analysis
Also called: Relative strength line

A plot of a stock's price divided by an index's price, rebased to 100 at the start of the measurement period.

In plain terms

The direction is the entire signal; the level is arbitrary because it depends on when you started.

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Indian stock market glossary · Market Vidyalaya