Reading the market regime before prices move
198 terms in 20 categories, each with a plain definition.
No matching term. Try the English name or pick a category.
Gamma Flip
The price where dealers' net gamma exposure flips from positive to negative. Above it they tend to calm moves, below it they tend to amplify them. It is the single most important level on the positioning map.
Example Price 769 and flip 770 → the market is in negative territory: expect a wider move
Call Option · Call
A right (not an obligation) to buy 100 shares at a set price (the strike) before expiration. Profits when the stock rises above breakeven (strike + premium).
Buy 1 AAPL Call $190 ← the right to buy 100 shares at $190
Put Option · Put
A right (not an obligation) to sell 100 shares at a set price (the strike) before expiration. Profits when the stock falls below breakeven (strike − premium).
Buy 1 TSLA Put $250 ← the right to sell 100 shares at $250
Strike Price · Strike
The price fixed in the contract at which the option can be exercised (to buy or to sell), regardless of the market price.
Strike $190 = the right to buy at $190 even if the stock reaches $220
Premium · Premium / Price
The contract price you pay. Multiply by 100 to get the actual cost. It is the maximum possible loss when buying the option.
Premium $2.50 = $250 cost of one contract
Expiration Date · Exp / Expiry
The date the option's life ends. After it, the option is worthless if not exercised.
Exp Jun 20 = expires on June 20
0DTE (Zero Days to Expiration) · 0DTE
Contracts that expire on the same trading day. Theta accelerates sharply in the final hours, which hurts the buyer and helps the seller. Available on SPX, SPY and QQQ every trading day.
Buy SPX Call 0DTE at 9:30 ET ← expires the same day at the close
LEAPS
Contracts running one to three years that move close to the stock itself because of their high delta. An alternative to owning shares outright with less capital.
AAPL LEAPS Jan 2027 Call $150, a long-dated contract for someone who believes AAPL will rise over two years
American Style · American
An option exercisable any time before expiration. Most single-stock options are American.
European Style · European
An option exercisable only at expiration. Most index options (SPX, NDX) are European and cash-settled.
At the Money · ATM
The option's strike is roughly equal to the current price. It carries the highest time value in relative terms.
AAPL @ $190 / Call $190 = ATM
Intrinsic Value
The part of the premium tied to how far in the money the option is. It exists only for ITM options.
Call $185 / AAPL @ $192 ← intrinsic value = $7
Extrinsic Value / Time Value · Extrinsic / Time Value
The extra part of the premium above intrinsic value. It decays daily until it reaches zero at expiration.
Premium $9.50 − intrinsic value $7 = time value $2.50
Break Even · Break Even / B/E
The price where actual profit begins: Call → strike + premium. Put → strike − premium.
Call $190 / Premium $3 → Break Even = $193
| Sensitivity | Term | What it measures |
|---|---|---|
| Delta | Delta (Δ) | How much the contract moves for each dollar the stock moves. Call: between 0 and +1 (positive). Put: between 0 and −1 (negative). It is also a rough gauge of the chance the contract finishes in the money. Delta 0.50 = Call moves $0.50 for every $1 rise in the stock |
| Theta | Theta (Θ) | How much the contract loses each day as time passes, speeding up as expiration approaches. Theta −0.05 = the contract loses $5 per day (0.05 × 100) |
| Time decay | Time Decay | The broad phenomenon of time value eroding as a contract nears expiration, accelerating non-linearly (a curve, not a straight line). Theta is the daily numeric measure of this decay. A 60-day contract: loses ~33% of its time value in the last 30 days |
| Gamma | Gamma (Γ) | How much delta changes for each $1 the stock moves. It is high at ATM and near expiration, making the contract accelerate non-linearly. Buyers benefit from high gamma, sellers fear it. Gamma 0.05 / delta 0.50: if the stock rises $1 ← delta becomes 0.55 |
| Vega | Vega (ν) | The contract's sensitivity to changes in implied volatility (IV). For every 1% change in IV, the contract's premium changes by the vega amount. Vega 0.10: if IV rises 1% → the contract premium rises $0.10 |
| Rho | Rho (ρ) | The contract's sensitivity to changes in interest rates. Its effect is limited on most short and medium-term trades. |
| Total position delta | Net Delta | The sum of the delta of all your positions: it tells you your net directional exposure. Zero means neutral (delta neutral). |
| Delta neutral | Delta Neutral | A position a market maker aims for to stay neutral on direction, earning from IV and time rather than from the move. |
| Vanna | Vanna | How much delta changes when implied volatility changes (it is also the change in vega when price moves). It explains why market maker hedging shifts as fear rises or calms, even if the stock barely moves. A volatility drop after earnings raises call delta ⇐ hedging purchases push price higher |
| Charm | Charm | How much delta changes with the passage of time alone. It intensifies before major expirations, forcing the market maker to adjust hedges just because a day passed. Monthly expiration week: high charm ⇐ price shifts with no new news |
Implied Volatility · IV / IV%
The market's expectation of future volatility, derived from option prices. Rises before earnings and major events.
IV 45% = the market expects an annual move of ±45%
IV Rank · IVR / IV Rank
Where IV stands now relative to its range over the past year (0–100%). Above 30% it counts as high and suitable for selling options. Above 50% = very high. Different from IV Percentile.
IVR 70 = IV now in the top 70% of its values over the past year
IV Crush
A sharp drop in implied volatility after a big event (earnings, a Fed decision...). It wipes out option premium even when the direction was right.
NVDA rose 8% after earnings but IV collapsed, so the contract lost 40%
Historical Volatility · HV / RV
Realized volatility, calculated from past price moves (a look backward). Comparing it with Implied Volatility (IV) tells you whether options are expensive (IV > HV) or cheap (IV < HV), which matters when choosing a strategy.
HV 20% / IV 35% = options are relatively expensive ← selling options is favored
VIX
The CBOE measure of expected implied volatility in S&P 500 over 30 days, computed from SPX. option prices. Below 15 = calm and comfort. 15–25 = normal. Above 30 = worry and fear. Above 40 = panic.
VIX 12 = cheap options, a calm rising market. VIX 40 = panic, very expensive options
Volatility Risk Premium · VRP
The gap between the implied volatility priced into options and the realized volatility that actually occurred. Usually positive, meaning insurance is sold for more than it cost.
Implied 18% and realized 12% ⇐ a premium of +6 points: option sellers are in a comfortable spot
VVIX
An indicator measuring the volatility of VIX itself, meaning how jumpy the "fear gauge" is. When it rises, the market is unsure even of how afraid it is.
VIX steady and VVIX jumping ⇐ pricing a possible shock before it happens
Contango
A forward price structure where far contracts cost more than near ones, the normal state in calm times. Its inversion (backwardation) signals immediate stress.
Spot VIX 14 and the two-month contract 17 ⇐ contango: no immediate panic
“Gamma Flip” is in this category, and you will find it at the top of the page.
Option Chain
A list of all the option contracts available for a stock, organized by expiration date and strike price.
Bid
The highest price a buyer pays right now. You receive it when you sell the option.
Bid $2.40 / Ask $2.60 ← place a Limit order at $2.50 (the midpoint)
Ask
The lowest price the seller accepts right now. You pay it when you buy the option.
Liquidity
How easily you can get in and out at a fair price. Measured by a tight Bid-Ask spread and high Volume and Open Interest.
Volume · Volume / Vol
The number of contracts traded today. It reflects activity right now, and a rise points to growing interest.
Open Interest · OI / Open Interest
Total Open Interest not closed by the end of the session. It differs from Volume: OI reflects cumulative interest, Volume reflects today's activity. When OI rises, new positions are being opened.
OI 10,000 + Volume 500 → 500 trades today on 10,000 open contracts
Put Wall
The strike with the largest put exposure below the current price. It often acts as a floor because dealer hedging there tends to be buying.
Put Wall 770 → nearest structural support, not a line drawn on the chart
Call Wall
The strike with the largest call exposure above the current price. It often acts as a ceiling that resists a breakout.
Call Wall 775 → likely resistance until expiration
Max Pain
The strike where the most contracts expire worthless, meaning option holders lose the most. Read it as a pull near expiration, not a prediction.
Max Pain 775 on Friday ⇐ price tends to settle near it into the close
Long · Long / Buy to Open (BTO)
Long position: you pay the premium and gain the right. Your maximum loss is limited to the premium paid.
Long 1 Call AAPL $190, you bought the right by paying $250
Short · Short / Sell to Open (STO)
Short position: you collect the premium and take on the obligation. Theta works for you, but the risk is higher.
Short 1 Put AAPL $180, collected $200 premium
Assignment
A random obligation that falls on the option seller when the right is exercised: Short Put → you must buy 100 shares at the strike. Short Call → you must sell 100 shares. OCC (the Options Clearing Corporation) assigns it randomly among sellers.
Short Put $180: the stock falls to $170 → Assignment ← you buy at $180 (loss of $1,000)
Rolling · Roll / Roll Out
Closing an open trade and opening another with a later expiration (sometimes a different strike) when the analysis still holds.
Roll Jun Put → Jul Put: extend the position by one more month
BTO / STO / BTC / STC
BTO: buy to open. STO: sell to open. BTC: buy to close a Short. STC: sell to close a Long.
Cash Settlement · Cash Settled
Cash settlement at expiration instead of receiving shares, with no Assignment risk. A feature of index options (SPX).
Exercise
The option buyer's decision to use the right to buy or sell the underlying asset at the preset strike price, instead of closing the trade by selling the contract.
If you buy a call option (Call Option) on a stock with a strike price of $100 and the stock rises to $130, you can exercise the right to buy the stock at $100 and profit from the price difference.
Stop Loss · Stop Loss / SL
A price level set in advance for exiting a trade to protect capital and limit losses if the market moves against you. As a rule of thumb in options, consider activating the stop-loss when you lose 50% of the premium value at most.
Bought at $2.00 → stop loss at $1.00 (50% loss)
Profit Target
The target percentage for taking profit: usually 50–100% of the premium. Set it before entering, not after.
Sell a contract for $2.00 premium → profit target: close at $1.00 (50% profit)
1% Rule
Never risk more than 1% of your capital on a single trade. It protects you from disaster when you are wrong.
Portfolio $10,000 ← max loss $100 per trade
Diversification
Spreading trades across different sectors to avoid concentrating in one part of the market.
Partial Close
Take part of the profit and keep the rest with a stop (Stop) at breakeven. It cuts risk and keeps the opportunity open.
Long Call
Buy a call: a bet on a clear rise. Max loss = the premium. Max profit = theoretically unlimited.
Buy 1 AAPL Call $190 ← gains if it rises above $190 + the premium
Long Put
Buy a put: a bet on a clear drop. Max loss = the premium. Max profit = strike price − premium.
Buy 1 SPY Put $480 ← gains if SPY falls below $480 − the premium
Covered Call
Selling a call on shares you own: steady monthly income. Assignment means your shares are sold at the strike.
Own 100 AAPL + Sell Call $200 → collect $150 monthly
Protective Put
Buy a put on shares you own: insurance against a sharp drop. You pay a premium to protect your portfolio.
Own 100 AAPL + Buy Put $180 → protected if it falls below $180
Collar
Covered Call + Protective Put together on the same shares, capping profit and loss at a low cost.
Own AAPL + Sell Call $200 + Buy Put $180 = Collar
Cash-Secured Put · CSP / Cash-Secured Put
Selling a put with enough cash reserve to buy the shares if assigned: income, or a purchase at a lower price.
Sell Put $175 AAPL + $17,500 cash-secured ← collect the premium or buy at $175
Naked Put
Selling a put without enough cash reserve: high risk, requires broker approval.
Wheel Strategy
A cycle between CSP and Covered Call: sell a put → Assignment → sell a call → called away → back to the put.
Wheel on AAPL: CSP $175 → Assignment → Covered Call $190 → repeat
Bull Call Spread · Bull Call Spread / Vertical Spread
Buy a call at the lower strike and sell a call at the higher strike. Profit and loss are both capped, at a lower cost than a Long Call alone.
Buy Call $190 / Sell Call $200 ← max profit $10 − net cost
Bear Put Spread · Bear Put Spread / Vertical Spread
Buy a put at the higher strike and sell a put at the lower strike. It gains from a limited drop, at a lower cost than a Long Put alone.
Buy Put $190 / Sell Put $180 ← gains if it falls below $190
Bull Put Spread · Bull Put Spread / Credit Spread
Sell a higher put + buy a lower put: you collect a net premium. Profits if the price holds or rises.
Sell Put $185 / Buy Put $180 → collected $1.50 net
Bear Call Spread · Bear Call Spread / Credit Spread
Sell a lower call + buy a higher call: you collect a net premium. Profits if the price holds or falls.
Sell Call $200 / Buy Call $205 → collected $0.80 net
Iron Condor
Bull Put Spread + Bear Call Spread together, 4 legs. It gains from a calm market and the stock staying in range.
Sell Put $170 / Buy Put $165 + Sell Call $200 / Buy Call $205
Iron Butterfly
Like Iron Condor but the sold strikes sit at ATM, giving higher profit and a narrower profit range.
Straddle
Buy a call and a put at the same strike (ATM) and the same expiration. It gains from a sharp move in either direction. Its risk: IV Crush.
Buy Call $190 + Buy Put $190 = Straddle, gains if the stock moves more than the premium
Strangle
Buy a call OTM and a put OTM at two different strikes. Cheaper than a Straddle, but it needs a bigger move to profit.
Buy Call $200 + Buy Put $180 = Strangle on AAPL @ $190
Short Straddle / Short Strangle
Sell a call + put ATM (or OTM for a strangle). Collects a high premium and profits from calm, but the risk is large: unlimited on the upside (the call) and very large on the downside (the put). Requires Tier 3 approval at most brokers.
Calendar Spread
Sell a near-expiry contract + buy a farther contract at the same strike. Benefits from the theta difference between the two.
Sell May Call $190 + Buy Jun Call $190 = Calendar
Diagonal Spread
Like Calendar but with different strikes. The best known: Poor Man's Covered Call, a monthly LEAPS + Short Call.
OCC (Options Clearing Corporation) · OCC
The central body that clears and settles all listed options trades in US markets, founded 1973. It guarantees both sides perform and carries out Assignment randomly among sellers.
Market Maker
An institution that makes the market and earns from the Bid-Ask spread. It does not bet on direction and stays delta neutral through the session.
Sweep
Urgent execution of a huge order across several venues at once, a sign of institutional urgency.
Dark Pool
Private trading venues among large institutions that do not show up in the regular market.
Hedge
Coverage of an existing position, not a directional bet. Unusual Flow may be a Hedge and not a bullish or bearish call.
GEX (Gamma Exposure) · GEX
A measure of how gamma affects dealer activity. It tells you the levels where mechanical buying or selling pressure may appear.
Gamma Walls
Levels where huge gamma builds up, acting as natural barriers that block or speed up the stock's move.
SPX
Index options on S&P 500: European-style, cash-settled, no Assignment, very liquid, better tax treatment.
Market Regime
The prevailing market state: stable and range-bound, or volatile and fast-moving. It decides which strategy works today. Finviro's term: “Market Regime”.
Key Price Levels
Prices where options positioning concentrates, so price slows or reverses there more than elsewhere. Finviro's term: “Key Price Levels”.
Algorithmic Bias
The engine's summary of positioning and flow data, not a human opinion or a recommendation. Finviro's term: “Algorithmic Bias”.
Range-Bound Market
Price stuck between a ceiling and a floor with no clear direction, a setting that rewards selling options rather than buying them. Sometimes mislabeled as a sideways chop regime; the platform's term is Range-Bound Market.
Options Strategy
The structure that suits the current market regime, offered for study, not as an order to execute. Finviro's term: “Options Strategy”.
Options Spreads
A trade made of more than one contract at once (a buy and a sell) to fix the risk in advance instead of holding a naked contract. Sometimes mislabeled as composite contracts; the platform's term is Options Spreads.
Peak Gamma Strike
The strike with the most gamma. Trading is pulled toward it because dealer hedging is densest there. Sometimes mislabeled as the magnet, highest absolute gamma or strongest liquidity cluster; the platform's term is Peak Gamma Strike.
Volatility Skew
Is the market paying more for protection contracts (fear) or speculation contracts (optimism)? Sometimes mislabeled as smile distortion; the platform's term is Volatility Skew.
Term Structure
How implied volatility differs between near and far expirations. It shows where the market expects the event. Sometimes mislabeled as term shape; the platform's term is Term Structure.
Hedging Demand
Volume of institutions buying puts to insure their portfolios: insurance, not a bearish bet. Finviro's term: “Hedging Demand”.
Macro Environment
Inflation, rates and liquidity: the fuel the market runs on before any technical analysis. Also called: macro desk. Finviro's term: “Macro Environment”.
MOC Imbalance
The surplus of buy or sell orders at the close, which moves the last ten minutes of the session. Sometimes mislabeled as the closing order gap; the platform's term is MOC Imbalance.
Advanced Volatility Structure
Reading VIX, the volatility term structure and VVIX together instead of a single number, to tell real calm from hedged calm. Sometimes mislabeled as 3D volatility analysis; the platform's term is Advanced Volatility Structure.
Market Breadth
How many stocks are rising versus falling: it shows whether an index rise is real or carried by a few names. Sometimes mislabeled as market breadth in other wording; the platform's term is Market Breadth.
Sector Rotation
Investors pull money out of one sector and move it into another, which often comes before a change in market leadership. Sometimes mislabeled as liquidity rotation; the platform's term is Sector Rotation.
Risk-On
Optimism that moves money into growing cyclical sectors as the economy strengthens. Also called: RISK-ON. Finviro's term: “Risk-On”.
Risk-Off
Fear moves money into stable defensive sectors (staples, utilities, healthcare). Finviro's term: “Risk-Off”.
Bid-to-Cover
Bids ÷ amount offered. Above 2.5× means strong demand. Also called: demand quorum, avg b2c. Finviro's term: “Bid-to-Cover”.
DTE
The number of days left until the contract expires. Sometimes mislabeled as 68DTE · 42d · 0d; the platform's term is DTE.
Macro Confluence
Rates, inflation and bonds pointing the same way, stronger than any single indicator. Finviro's term: “Macro Confluence”.
Net Liquidity
The Fed balance sheet minus the Treasury account and reverse repo: the cash actually available to assets.
VRP · Variance Risk Premium
The difference between the volatility the market priced and what actually happened. Positive rewards the seller.
Composite Bias
A single summary of several indicators, with no opinion and no recommendation. Finviro's term: “Composite Bias”.
Standard Deviation
The range price is expected to stay within, with 68% probability.
Squeeze
A sharp move in which a trapped side is forced to buy or sell, so it accelerates, with no set direction in advance. What the platform shows is “Squeeze Potential”: a screen for how likely one is, not a forecast.
Yield Curve Spread
The spread between yields at different maturities. Its inversion is the strongest historical recession warning, with a lead time of 6–18 months.
DEX (Delta Exposure)
The amount of the asset market makers must buy or sell to neutralize their positions.
Realized Volatility (RV)
What the market actually moved over the last 20 sessions. Sometimes mislabeled as actual volatility; the platform's term is Realized Volatility.
Backwardation
Near-term is pricier than far-term, a sign of stress. Finviro's term: “Backwardation”.
Short Squeeze
A rise that forces short sellers to buy, which pushes the rise further.
Indirect Bidders
Bids placed through brokers, mostly central banks and institutions. Sometimes mislabeled as foreigners; the platform's term is Indirect Bidders.
TGA
The US Treasury's checking account at the Federal Reserve, where taxes and bond proceeds are deposited and spending is paid from. A rising balance pulls cash out of the banking system. A falling balance returns it.
RRP
A facility where money market funds park their cash overnight at the Federal Reserve for interest, which takes that cash out of the market cycle. A rising balance means idle cash. A falling balance means it is returning in search of yield.
Coverage Universe
The list of symbols the platform tracks. Sometimes mislabeled as the platform universe, the watch universe or the full pair universe; the platform's term is Coverage Universe.
Debit Spread
You pay a net amount at opening. Finviro's term: “Debit Spread”.
Credit Spread
You receive a net amount at opening. Finviro's term: “Credit Spread”.
0DTE
Option contracts that expire in the same day's session. Their time value is almost zero, so they move violently on any price change. Dealer hedging of these contracts does the most to amplify index moves within the session.
Win Rate
Winning trades ÷ total closed trades. Also called: hit rate, success rate, WIN RATE. Finviro's term: “Win Rate”.
R:R
The first number is what you risk, the second is what you target. Also called: R:R, R/R, return/risk. Finviro's term: “R:R”.
Setup
The technical signals the trade was built on. Finviro's term: “Setup”.
Swing
Trades held open for days to weeks. Sometimes mislabeled as Swing trader; the platform's term is Swing.
Scalping
Trades lasting seconds to minutes. Sometimes mislabeled as Scalping or the scalper; the platform's term is Scalping.
RVOL
Today's volume relative to its usual level. Also called: RVol. Finviro's term: “RVOL”.
Percentile
Where the current reading sits among the readings of the period. Sometimes mislabeled as the centile; the platform's term is Percentile.
Basis Point
0.01%, one hundred basis points = 1%. Sometimes mislabeled as bp; the platform's term is Basis Point.
13F
A quarterly filing required of every institution managing over $100 million in US equities, listing its positions. It is filed within 45 days of quarter end, so it is a delayed picture, not a live one.
Zombie Company
Its operating income does not cover its debt interest for three years in a row. Finviro's term: “Zombie Company”.
Yen Carry Trade
Borrowing in cheap yen to buy higher-yielding assets. Also called: yen campaign, carry cycle. Finviro's term: “Yen Carry Trade”.
Equity (account)
Current capital after gains and losses. Finviro's term: “Equity”.
AUM
The total value of the portfolio, not the cash balance. Finviro's term: “AUM”.
Spot
Buying and selling the asset itself, with no leverage and no futures. Sometimes mislabeled as spot; the platform's term is Spot Trading.
Options Order Flow
Track large trades moment by moment: where institutional money is placing its bets now. Finviro's term: “Options Order Flow”.
Institutional Flow
Money from banks and hedge funds, moving in sizes that change the price, unlike retail trading. Finviro's term: “Institutional Flow”.
UOA · Unusual Options Activity
A sudden volume far above normal on a specific contract, sometimes ahead of news. Finviro's term: “Unusual Options Activity”.
Net Premium Flow
The difference between money paid on calls and money paid on puts. Also called: net premium. Finviro's term: “Net Premium Flow”.
Net Flow Drift
Whether net premium flow builds up or down across the session. The accumulation matters more than the snapshot. Sometimes mislabeled as directional pressure drift; the platform's term is Net Flow Drift.
Flow Crossover
The moment liquidity on one side overtakes the other, a switch in side rather than in intensity. Sometimes mislabeled as flipping of the dominant side; the platform's term is Flow Crossover.
Divergence
Price rises while liquidity leaves (or the reverse), a warning of a misleading move or a coming reversal. Finviro's term: “Divergence”.
Premium Selling
Selling the contract instead of buying it to benefit from time decay. Finviro's term: “Premium Selling”.
Option Leg
One contract in a multi-leg strategy. On its own it may not be directional. Sometimes called “leg” or “side”. Finviro's term: “Option Leg”.
Most Active
Symbols that drew the largest premium in the session, where the liquidity is, not where the direction is. Finviro's term: “Most Active”.
Trade Scanner
Automated detection of trades that meet the entry filters: candidates to study, not execution orders. Finviro's term: “Trade Scanner”.
Structural Invalidation
A break of the level the trade was built on ⇐ the reason for entry no longer holds. Sometimes mislabeled as structural breakdown; the platform's term is Structural Invalidation.
Bull Trap / Bear Trap
A false breakout that lures traders in, then reverses against them. Also called: trap. Finviro's term: “Bull Trap / Bear Trap”.
Mean Reversion
The tendency of price to return to its historical average after an exaggerated rise or fall.
VWAP
The average cost of the market's actual positions today: above it is strength, below it is weakness.
OBV · On-Balance Volume
Adds up the volume of up days and subtracts the volume of down days, revealing the true direction of money flow.
CMF · Chaikin Money Flow
An indicator measuring where the candle closed within its range, weighted by volume over twenty sessions. Above zero means accumulation (quiet institutional buying), below it means distribution (gradual selling).
Accumulation / Distribution
Quiet institutional buying (accumulation) or gradual hidden selling (distribution).
Overbought
A fast rise that leaves the price temporarily expensive and exposed to profit-taking. Sometimes mislabeled as exaggerated buying; the platform's term is Overbought.
Oversold
A harsh drop that makes price temporarily cheap, a candidate for a bounce. Sometimes mislabeled as selling exhaustion; the platform's term is Oversold.
ADX · Trend Strength
It does not say where price is heading, only whether the trend has any strength or the market is range-bound.
ATR · Average True Range
How far the symbol moves per day in dollars on average, the basis for placing a stop-loss.
Correlation Matrix
Do two assets move together or against each other? It answers: does this protect me if that one collapses? Sometimes mislabeled as the linkage matrix; the platform's term is Correlation Matrix.
Inverse Correlation
Two assets that move in opposite directions: the market rises and the fear index falls. The signal is the breakdown of this opposition, not its existence.
Dealer Positioning
Where the people who sell and buy the contracts stand. Their hedging either restrains price moves or amplifies them, and it is the strongest driver within the day.
Rolling Correlation
The strength of the relationship between two assets, computed over a window that moves forward with time. It shows when the relationship itself changes, not when the price changes. Sometimes mislabeled as Rolling Correlation in other wording; the platform's term is Rolling Correlation.
Z-Score
How far the current figure is from its average, in standard deviation units. 1.5 or more = an event that happens less than 7% of the time.
Systemic Risk
Stocks, bonds and gold falling together, which cancels the benefit of diversification. Sometimes mislabeled as systemic pressure; the platform's term is Systemic Risk.
Carry Trade
Borrowing in a low-rate currency to buy higher-yielding assets, which unwinds violently in a panic. Finviro's term: “Carry Trade”.
TTM · Trailing Twelve Months
Summing the last four consecutive quarters to standardize the comparison period across companies with different fiscal years.
FCF · Free Cash Flow
Cash left after expenses and expansion. The most important number for an investor because it is hard to dress up.
P/E Ratio
How many dollars you pay for every dollar the company earns per year.
ROE · Return on Equity
How well the company turns shareholders' money into profit.
Current Ratio
The company's ability to pay its short-term obligations from the assets it has available.
Interest Coverage Ratio
How many times earnings cover interest on debt. Higher = safer.
Quick Ratio · cmp:quick_ratio
Like the current ratio but without inventory: is the quick money alone enough for this year's debts?
Current assets $500M, of which inventory $150M, and current liabilities $300M. Ratio = (500 − 150) ÷ 300 = 1.17×: even without selling inventory, the quick money covers the near-term debts. (Teaching example of a hypothetical company)
Cash Ratio · cmp:cash_ratio
Cash and equivalents ÷ current liabilities, the most conservative liquidity measure.
Cash $100M and current liabilities $300M. Ratio = 100 ÷ 300 = 0.33×: cash alone covers a third of the near-term debts, which is normal for many companies. (Teaching example of a hypothetical company)
Net Working Capital (NWC) · cmp:nwc
Current assets − current liabilities ($). The short-term operating cushion.
Current assets $500M and current liabilities $300M. Net working capital = 500 − 300 = 200, in $ millions. (Teaching example of a hypothetical company)
Cash Flow from Operations (CFO) · cmp:ocf
Cash generated by core operations ($), an indicator of earnings quality.
Net profit $100M, and cash from operations $130M. Cash is above the reported profit, a sign of real earnings. (Teaching example of a hypothetical company)
Earnings Per Share (EPS) · cmp:eps
Net income ÷ number of shares ($): the profit earned per share.
Net profit $100M and 100M shares. EPS = 100 ÷ 100 = $1 per share. (Teaching example of a hypothetical company)
Book Value Per Share · cmp:bvps
Shareholders' equity ÷ number of shares ($), the book value per share.
Shareholders' equity $1,000M and 100M shares. Book value per share = $10, and the stock trades at $25, or 2.5 times its book value. (Teaching example of a hypothetical company)
Book Value · cmp:book_value
Total shareholders' equity ($): the company's net book value.
Assets $2,000M and total liabilities $1,000M. Book value = 2,000 − 1,000 = 1,000, in $ millions. (Teaching example of a hypothetical company)
Payout Ratio · cmp:payout
Dividends ÷ net income: the share of earnings paid out to shareholders in cash.
Net profit $100M and cash dividends $40M. Payout ratio = 40 ÷ 100 = 40%, leaving 60% for growth or paying down debt. (Teaching example of a hypothetical company)
Asset Turnover · cmp:asset_turnover
Revenue ÷ total assets: how efficiently assets generate sales.
Revenue $1,000M and total assets $2,000M. Turnover = 1,000 ÷ 2,000 = 0.5×: each dollar of assets brought in half a dollar of sales. (Teaching example of a hypothetical company)
Current Asset Turnover · cmp:current_asset_turnover
Revenue ÷ current assets: how efficiently short-term assets are used.
Revenue $1,000M and current assets $500M. Turnover = 1,000 ÷ 500 = 2×. (Teaching example of a hypothetical company)
Fixed Asset Turnover · cmp:fixed_asset_turnover
Revenue ÷ fixed assets: how efficiently plants and equipment generate sales.
Revenue $1,000M and fixed assets $800M. Turnover = 1,000 ÷ 800 = 1.25×. (Teaching example of a hypothetical company)
Debt Ratio · cmp:debt_ratio
Total debt ÷ total assets. The share of assets financed by debt.
Total debt $600M and total assets $2,000M. Ratio = 600 ÷ 2,000 = 30%: three tenths of the assets are funded with debt. (Teaching example of a hypothetical company)
Debt to Equity · cmp:debt_to_equity
Total debt ÷ shareholders' equity. How much funding relies on borrowing versus ownership.
Debt $600M and shareholders' equity $1,000M. Ratio = 600 ÷ 1,000 = 0.6×: for every dollar from the owners, 60 cents are borrowed. (Teaching example of a hypothetical company)
Equity Multiplier · cmp:equity_multiplier
Total assets ÷ shareholders' equity. How much leverage inflates the assets.
Total assets $2,000M and shareholders' equity $1,000M. Multiplier = 2,000 ÷ 1,000 = 2×. (Teaching example of a hypothetical company)
Gross Margin · cmp:gross_margin
(Revenue − cost of sales) ÷ revenue. Product profitability before operating expenses.
Revenue $1,000M and cost of sales $600M. Margin = (1,000 − 600) ÷ 1,000 = 40%. (Teaching example of a hypothetical company)
Net Margin · cmp:net_margin
Net income ÷ revenue: what is left of every sales dollar after all costs.
Revenue $1,000M and net profit $100M. Margin = 100 ÷ 1,000 = 10%: from every $100 of sales, $10 is left. (Teaching example of a hypothetical company)
Operating Margin · cmp:operating_margin
Operating income ÷ revenue: profitability of the core business before interest and taxes.
Revenue $1,000M and operating profit $150M. Margin = 150 ÷ 1,000 = 15%. (Teaching example of a hypothetical company)
Return on Assets (ROA) · cmp:roa
Net income ÷ total assets: how efficiently the company turns assets into profit.
Net profit $100M and total assets $2,000M. Return = 100 ÷ 2,000 = 5%. (Teaching example of a hypothetical company)
Selective Trading Algorithm
A systematic program that rarely enters: it waits for all of a strict set of conditions before any trade. Also called: the sniper. Finviro's term: “Selective Trading Algorithm”.
Paper Trading
Virtual money on real prices, to prove an idea works before risking real money. Also called: paper demo. Finviro's term: “Paper Trading”.
Spot Trading
Actually buying and owning the asset, with no leverage or borrowing ⇐ no forced liquidation however far the price falls. Sometimes mislabeled as spot only; the platform's term is Spot Trading.
Entry Filters
A series of conditions that must all be met before execution. If one fails, there is no trade. Sometimes mislabeled as gates; the platform's term is Entry Filters.
Institutional Invalidation
Blocks entry when institutional money is seen leaving at the same moment. Sometimes mislabeled as institutional rejection; the platform's term is Institutional Invalidation.
Relative Volume Spike
Trading volume several times its normal average, a sign of real momentum, not noise.
False Breakout
A move through resistance that lures traders in, then reverses. The most common cause of trader losses. Finviro's term: “False Breakout”.
R:R · Risk/Reward Ratio
How much you earn for every dollar you risk: 2.46 means two and a half times.
Trailing Stop
Rises automatically with price to lock in profit if the market suddenly reverses.
Time Stop
Closing after a set time if the price does not move. Capital tied up in a stagnant asset is a hidden loss. Also called: time close, dead track. Finviro's term: “Time Stop”.
Cooldown Period
Blocks re-entry into the same symbol after a stop is hit, which cuts off revenge trading. Sometimes mislabeled as cooling off; the platform's term is Cooldown Period.
Underlying Price (S)
The current price of the stock or index, the base from which the contract price is derived.
ITM · In The Money
The contract is past its strike, so it carries real value right now.
OTM · Out of The Money
Price has not yet reached the strike ⇐ its value is purely time value.
SPY flip point today: $770.00 · positive gamma, so the market tends to dampen moves around this level.
This is one level from a grid that updates during the session. The full grid and the pre-open report are inside the platform.
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