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 32 terms
In a pairs trade, the gap between two related stocks — the thing the position is actually held in.
The position is the spread, so the stop belongs on the spread. A stop on one leg alone converts a market-neutral trade into a naked directional one at the worst moment.
The gap between the best bid and the best ask.
The cost of being in a hurry. In illiquid stocks it is often your largest single cost.
Yield on assets minus cost of funds — two rates, subtracted.
The measure a capital raise cannot flatter. Net interest margin rises when more of the book is funded by shareholders’ money; the spread, being a difference of two rates, cannot move for that reason.
The difference between the value a fixed exchange ratio or cash offer implies for a target share and the price the target actually trades at.
Payment for the wait and for the chance the scheme never completes. It narrows as approvals land and gaps out the moment one is in doubt.
Reading volume against the candle’s range to judge whether a move was easy or difficult.
Volume is effort, range is result. When they disagree, someone large is on the other side.
Spreading the cost of an intangible asset across its useful life.
The intangible equivalent of depreciation. Goodwill is the exception — it is not amortised.
The final phase of a decline, marked by heavy-volume selling and widespread exhaustion.
The mood is not caution — it is disgust, and people questioning whether equity works at all.
A stable long-run relationship between two price series, such that the spread between them oscillates around a mean rather than trending away.
The statistical name for what a pairs trader checks by eye: plot the ratio over three years and see whether it oscillates or simply wanders off.
The cumulative effect of brokerage, taxes, spreads and slippage on returns, rising with how often the account is turned over.
An account turned over twice a month pays roughly 6% of capital a year in friction before any question of skill. Choosing a rhythm is choosing a headwind.
In a pairs trade, the risk that the spread keeps widening because the relationship between the two legs has genuinely changed.
The failure mode that erases many winners: you lose on both legs at once, and the short leg's loss is theoretically unbounded.
Spreading capital across holdings to reduce exposure to any single one.
Most of the benefit is captured by about fifteen genuinely uncorrelated positions.
A floating loan rate expressed as a published external benchmark plus a spread fixed at sanction.
The benchmark moves for everybody; your spread was set the day you signed. Lenders compete by cutting the spread on new loans, which is why the bank next door quotes less than your own bank charges you.
The present value of the excess interest spread on a sold loan pool, recognised in income at the moment a transfer qualifies to come off the balance sheet.
Future interest brought into this quarter. It does not repeat unless another pool is sold, and it rests on disclosed assumptions about prepayment and default that reduce the spread actually collected.
Investing a large sum in a single transaction rather than spreading it across time.
It wins more often than staggering, because markets rise more often than they fall. It also produces the one experience — everything deployed the week before a 20% correction — that makes people abandon equity altogether.
A participant who continuously quotes both a bid and an ask, earning the spread for standing ready to trade either side.
The reason you can transact at all in a less liquid instrument. Their absence is why some stocks show a 2% spread.
The spread of outcomes you would see from repeated draws of the same underlying process.
Thirty trades is thirty trades of information, however many times you reshuffle them. A small sample presented a thousand ways is still a small sample.
The total of brokerage, STT, stamp duty, GST, spread and impact.
Charged per trade, so frequency is the largest controllable drag on returns.
The fixed periodic interest a bond pays, expressed as a percentage of its face value.
Not your return. Buy above face value and the premium is a loss spread across the holding period, which yield to maturity captures and the coupon does not.
A lender agreeing not to act on a breach on this occasion, without giving up the right it acquired.
It was not granted free — look for what it cost, in a wider spread, security created, a dividend not declared or capital expenditure deferred. And a waiver reached after the reporting date does not move a reclassified loan back to non-current.
The outright sale of a loan portfolio to a buyer — often a bank meeting its priority sector obligations — with the seller retaining a prescribed minimum share of every loan and continuing to service them.
Where the transfer qualifies, the loans leave the balance sheet and the future spread is recognised now. The borrower never notices: the same branch, the same collections, a different owner of the interest.
A lender’s revenue other than interest — processing charges, distribution commission and fees for services rendered.
A processing fee integral to the loan’s yield is folded into the effective interest rate and spread over the loan’s life; commission and service charges are earned at origination. Fee income growing much faster than the book means more of the return is being taken up front.
A short symbolic trading session held on Diwali.
A tradition rather than an opportunity — thin volume and wide spreads.
A breadth measure counting stocks making fresh 52-week highs against those making fresh 52-week lows.
In a healthy advance new highs vastly outnumber new lows. Expanding new lows while the index still rises means damage is spreading beneath the surface.
Net interest margin — net interest income divided by average interest-earning assets.
Never read it without GNPA: a rising margin earned by lending to riskier borrowers is not skill. It is also not the same number as the lending spread, because the margin counts the assets funded by the lender’s own capital, which cost nothing.
The high and low established in the first minutes of the session, used as a reference level by many intraday methods.
In India it forms with no pre-market behind it, so it carries more auction residue and wider spreads than the imported material assumes.
Buying one stock and shorting a related one, betting only that the gap between them narrows rather than on either's direction.
A spread widens either because the market is temporarily wrong or because something genuinely changed, and the two look identical on a chart. In India the short leg usually forces the trade into futures, which is why it remains largely institutional.
Re-running a valuation across a range of growth and discount-rate assumptions to see how far the answer moves.
The output is a spread rather than a figure, and the spread is the honest answer. A DCF quoted to the rupee is a claim the model cannot support.
Deliberately realising gains up to the annual long-term exemption, or realising losses to offset gains, before the financial year closes.
The exemption does not carry forward — unused, it disappears. Selling and rebuying resets your cost base higher at no tax cost, spreading one large future gain across several years of exemption.
The rupee amount an investment is worth on the date the money is actually needed.
The quantity that decides whether a goal is met. Percentages narrow as the horizon lengthens; the rupees at the end spread further apart.
The smallest increment by which a security's price may move, typically 5 paise for most Indian equities.
It sets a floor on how tight a bid-ask spread can ever be. That floor bites hardest in low-priced stocks, where one tick is a meaningful percentage.
The claim that holding equity for a longer period reduces its risk.
True of the annualised return, which converges roughly with the square root of the horizon, and false of the final amount, whose spread widens over the same years. Most arguments about it are two people each defending one half.
Interest income divided by average interest-earning assets — what a lender earns on what it has lent.
Half of the spread, and the half that is easiest to misread. A high yield is not skill; it is the price of the risk the lender agreed to carry, and the credit cost line is where that bill arrives.