Hollow Point Academy / quick reference

Trading cheat sheets

Hear it on stream. Find it here. 329 trading terms, organized into nine quick-reference sheets.

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Start here / stream shorthand

The four that started this sheet

PML

Premarket low

Lowest price in the selected premarket window; match chart session settings.

PMH

Premarket high

Highest price in the selected premarket window.

PDH

Previous-day high

Prior trading day's high; specify regular or full session.

4DL

Four-day low

HPT screenshot meaning: four-day low. Confirm whether the indicator includes today's developing session.

Use the same symbol, timezone and session window as the stream. A futures overnight low can differ from a cash-equity premarket low. “Previous day” may mean regular hours or the full session.

Read a callout in plain English

“Reclaim PMH, watch PDH; lose PML and 4DL is the next reference.”

Price regains the premarket high; the previous-day high is another area to watch. If price falls below the premarket low, compare it with the four-day low. These are chart references. An entry still needs a defined trigger, invalidation and position size.

Head and shoulders: a top has three peaks with the head highest and two lower shoulders. The inverse has three troughs with the head lowest. The neckline connects the reaction points between them; a drawing alone does not confirm a reversal.

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329 of 329 terms · Download all definitions

Stream levels & sessions 38

PMLPremarket low: Lowest price in the selected premarket window; match chart session settings.
PMHPremarket high: Highest price in the selected premarket window.
PDHPrevious-day high: Prior trading day's high; specify regular or full session.
PDLPrevious-day low: Prior trading day's low; specify regular or full session.
4DLFour-day low: HPT screenshot meaning: four-day low. Confirm whether the indicator includes today's developing session.
4DHFour-day high: High across a four-day lookback; confirm inclusion of today's session.
PDCPrevious-day close: Prior session's closing price; distinct from futures settlement.
PDOPrevious-day open: Prior session's opening price.
HODHigh of day: Highest traded price so far in the selected day/session.
LODLow of day: Lowest traded price so far in the selected day/session.
ONHOvernight high: High during the configured overnight window.
ONLOvernight low: Low during the configured overnight window.
PWHPrevious-week high: Highest price in the prior completed trading week.
PWLPrevious-week low: Lowest price in the prior completed trading week.
PWCPrevious-week close: Closing price of the prior completed trading week.
PMoHPrevious-month high: Prior calendar month's high; spelling varies by indicator.
PMoLPrevious-month low: Prior calendar month's low; distinguish from premarket low.
ATHAll-time high: Highest price in the available comparable history; adjustments matter.
ATLAll-time low: Lowest price in the available comparable history.
52-week highRolling yearly high: Highest price over the last 52 weeks.
52-week lowRolling yearly low: Lowest price over the last 52 weeks.
RTHRegular trading hours: Product-specific regular session; US cash equities generally 9:30 a.m.–4 p.m. Eastern.
ETHExtended trading hours: Trading outside regular hours; may also mean Ether in crypto.
PremarketBefore cash open: Equity trading before the regular cash session.
After-hoursAfter cash close: Equity trading after the regular cash session.
Opening rangeInitial session range: High and low over a defined opening interval, such as five or fifteen minutes.
ORHOpening-range high: High of the chosen opening interval.
ORLOpening-range low: Low of the chosen opening interval.
ORBOpening-range breakout: Move beyond that interval's boundary; a break can fail.
IBInitial balance: Often the first hour's range in market-profile work; confirm methodology.
Cash openRegular-session start: Opening of the underlying cash market.
GlobexCME electronic venue: Electronic futures marketplace; trading hours depend on the contract.
SettlementOfficial daily reference: Exchange-calculated daily value used for marking futures positions.
Session VWAPSession volume-weighted average: Average trade price weighted by volume since the session anchor.
Anchored VWAPEvent-anchored average: Volume-weighted average starting from a chosen time or event.
Gap upHigher opening: Opening above the chosen prior reference, often the previous close.
Gap downLower opening: Opening below the chosen prior reference.
Gap fillReturn through a gap: Price revisits a defined gap reference; not an inevitable event.

Price action & structure 44

SupportPotential buying area: Area where buying previously slowed a decline; it can break.
ResistancePotential selling area: Area where selling previously slowed a rise; it can break.
Supply zoneSelling-interest area: Chart area interpreted as potential selling interest, not proof of resting orders.
Demand zoneBuying-interest area: Chart area interpreted as potential buying interest.
TrendDirectional structure: Persistent price direction over a stated timeframe.
UptrendRising structure: A sequence commonly described by higher highs and higher lows.
DowntrendFalling structure: A sequence commonly described by lower highs and lower lows.
HHHigher high: Swing high above the prior comparable swing high.
HLHigher low: Swing low above the prior comparable swing low.
LHLower high: Swing high below the prior comparable swing high.
LLLower low: Swing low below the prior comparable swing low.
Swing highLocal peak: A high surrounded by lower highs under a defined swing rule.
Swing lowLocal trough: A low surrounded by higher lows under a defined swing rule.
RangeBounded trading: Price moving between identifiable upper and lower boundaries.
ConsolidationPrice compression: Sideways or narrowing movement following or between directional moves.
BreakoutMove above a boundary: Price trades above a defined resistance or range.
BreakdownMove below a boundary: Price trades below a defined support or range.
RetestReturn to a level: Price revisits an area after moving away or breaking through it.
ReclaimRegain a level: Price returns above a previously lost reference; define acceptance criteria.
RejectionFailure to sustain: Price tests an area and moves away without sustained acceptance.
AcceptanceSustained trading: Time or volume building near or beyond a level under a stated rule.
False breakoutFailed upside break: Price breaks upward and returns inside the prior structure.
False breakdownFailed downside break: Price breaks downward and returns inside the prior structure.
Bull trapFailed bullish move: An upside move reverses and leaves late buyers under pressure.
Bear trapFailed bearish move: A downside move reverses and leaves late sellers under pressure.
PullbackCountertrend pause: A temporary move against the observed trend.
RetracementPartial reversal: Price gives back part of a prior move.
ReversalDirection change: A change in the prevailing directional structure.
ContinuationTrend resumption: Movement in the prior trend's direction after a pause.
ImpulseStrong directional leg: A relatively forceful move over the chosen timeframe.
ChopOverlapping movement: Frequent reversals and limited follow-through.
WhipsawRapid reversal: A move that triggers participation and quickly reverses.
Mean reversionReturn toward an average: A tendency or trade thesis involving return toward a reference mean.
ExtensionDistance from reference: A move stretched from an average, level, or prior range.
ConfluenceOverlapping evidence: Several independent observations point to the same area or scenario.
BOSBreak of structure: Break of a defined swing point; rules differ across methods.
CHOCHChange of character: Method-specific early shift in directional structure.
MSSMarket structure shift: A method-defined change in the prevailing swing structure.
FVGFair value gap: In common three-candle usage, non-overlap between the first and third candle extremes; not an exchange pricing guarantee.
Order blockMethod-defined chart zone: A candle or zone interpreted as preceding displacement; does not prove institutional orders.
Liquidity sweepTrade beyond a reference: Price crosses a visible high or low, often followed by a reversal; intent is not directly observable.
DisplacementRapid directional expansion: A forceful move with relatively little overlap.
Equal highsSimilar swing peaks: Highs clustered near the same price within a chosen tolerance.
Equal lowsSimilar swing troughs: Lows clustered near the same price within a chosen tolerance.

Chart patterns & candles 31

OHLCOpen high low close: Four prices describing a bar over its interval.
Candle bodyOpen-to-close area: Distance between a candle's opening and closing prices.
WickIntrabar extension: Line showing movement beyond the candle body.
DojiSimilar open and close: Candle with a small body relative to its range.
HammerLong lower wick: Small body near the top of a candle after a decline; context matters.
Shooting starLong upper wick: Small body near the bottom after an advance; context matters.
Bullish engulfingUpward body overlap: An up candle's body envelops the prior down candle's body.
Bearish engulfingDownward body overlap: A down candle's body envelops the prior up candle's body.
Inside barContained range: Bar high and low sit within the preceding bar's range.
Outside barExpanded range: Bar high exceeds and low falls below the preceding bar's extremes.
MarubozuLittle-wick candle: Candle whose body occupies nearly its entire range.
Head and shouldersThree-peak structure: Middle peak is highest; shoulders are lower peaks around it. A neckline break is commonly used for confirmation.
Inverse head and shouldersThree-trough structure: Middle trough is lowest; shoulders are shallower troughs. The shoulders need not point in opposite directions.
NecklinePattern reference line: Line connecting reaction lows in a head-and-shoulders top, or highs in its inverse.
Double topTwo-peak pattern: Two similar highs separated by a decline; confirmation rules vary.
Double bottomTwo-trough pattern: Two similar lows separated by a rally.
Triple topThree-peak pattern: Three tests of a similar resistance area.
Triple bottomThree-trough pattern: Three tests of a similar support area.
Bull flagPause after a rally: Tight sideways or downward consolidation after an upward impulse.
Bear flagPause after a decline: Tight sideways or upward consolidation after a downward impulse.
PennantSmall converging pause: Brief converging range following an impulse.
Ascending triangleFlat highs rising lows: Compression between horizontal resistance and rising support.
Descending triangleFlat lows falling highs: Compression between horizontal support and falling resistance.
Symmetrical triangleConverging boundaries: Falling swing highs and rising swing lows.
Rising wedgeRising converging lines: Both boundaries rise and narrow; directional outcome requires confirmation.
Falling wedgeFalling converging lines: Both boundaries fall and narrow.
Cup and handleRounded base and pause: Rounded recovery followed by a smaller consolidation.
Rounded bottomGradual base: A broad transition from decline to recovery.
ChannelParallel boundaries: Price structure bounded by roughly parallel trend lines.
TrendlineSwing reference line: Line connecting selected highs or lows; selection is discretionary.
Measured moveProjection method: Estimate based on the size of a preceding leg or pattern; not a promised target.

Indicators & volume 32

SMASimple moving average: Arithmetic average over a chosen number of observations.
EMAExponential moving average: Average that weights recent observations more heavily.
WMAWeighted moving average: Average using specified unequal observation weights.
RSIRelative strength index: Momentum oscillator based on average gains and losses over a lookback.
MACDMoving average convergence divergence: Difference between two exponential averages, commonly paired with a signal average.
MACD histogramMACD minus signal: Difference between the MACD line and its signal line.
ATRAverage true range: Smoothed measure of price range including gaps; measures movement, not direction.
Bollinger BandsDeviation bands: Bands usually drawn a set number of standard deviations from a moving average.
Keltner ChannelsRange-based bands: Bands commonly placed around an EMA using ATR.
Stochastic oscillatorClose within recent range: Momentum measure comparing the close with a recent high-low range.
ADXAverage directional index: Indicator of trend strength rather than trend direction.
ROCRate of change: Percentage price change over a chosen lookback.
CCICommodity channel index: Oscillator measuring deviation from a statistical price reference.
OBVOn-balance volume: Running volume measure adding on up closes and subtracting on down closes.
MFIMoney flow index: Volume-weighted oscillator based on price and volume.
RVOLRelative volume: Volume compared with a baseline; time-of-day alignment matters.
VolumeQuantity traded: Shares or contracts exchanged over an interval.
Volume profileVolume by price: Distribution of traded volume across price levels.
POCPoint of control: Price with the highest volume in the selected volume profile.
VAHValue-area high: Upper edge of a chosen profile value-area percentage.
VALValue-area low: Lower edge of the selected profile value area.
HVNHigh-volume node: A local concentration of volume in a profile.
LVNLow-volume node: A local valley of volume in a profile.
TPOTime price opportunity: Market-profile unit recording a price's presence within a time bracket.
DivergenceIndicator disagreement: Price makes a new extreme while a chosen indicator does not.
OverboughtElevated oscillator reading: Indicator at a high threshold; does not mean price must fall.
OversoldDepressed oscillator reading: Indicator at a low threshold; does not mean price must rise.
BreadthParticipation measure: How broadly securities participate in a market move.
Advance-decline lineCumulative net advances: Running total of advancing issues minus declining issues.
TICKUptick-downtick measure: Exchange-specific count difference between stocks last trading on upticks and downticks.
Relative strengthComparative performance: Performance of one asset against another; different from RSI.
Sector rotationLeadership changes: Capital or performance leadership shifting among sectors.

Orders & execution 34

BidDisplayed buying price: Highest displayed price buyers currently offer in the chosen feed.
AskDisplayed selling price: Lowest displayed price sellers currently request; also called offer.
SpreadBid-ask difference: Gap between best bid and ask; elsewhere can mean a multi-leg position.
MidpointQuote average: Arithmetic midpoint of best bid and ask; execution there is not assured.
Market orderImmediate execution request: Order seeking execution at available prices; final price is not guaranteed.
Limit orderPrice-bounded order: Buy at the limit or lower, or sell at the limit or higher; may remain unfilled.
Stop orderTriggered market order: Becomes a market order when its trigger condition is met; execution may differ from stop price.
Stop-limit orderTriggered limit order: Becomes a limit order at its trigger; may not execute.
Trailing stopMoving stop trigger: Stop reference moves with favorable price movement under the broker's rules.
Bracket orderLinked entry and exits: Entry paired with protective and target orders; linkage and behavior depend on the platform.
OCOOne cancels the other: Linked orders where execution of one cancels the other under supported rules.
DAYDay order duration: Order expires at the end of its applicable trading session if unfilled.
GTCGood till canceled: Order remains active until canceled or broker expiration rules apply.
IOCImmediate or cancel: Executes available quantity immediately and cancels the rest.
FOKFill or kill: Must execute the entire requested quantity immediately or cancel.
Partial fillIncomplete execution: Only part of an order's quantity executes.
SlippageExpected versus actual fill: Difference between intended or reference price and executed price.
LiquidityAbility to transact: Ability to trade size with limited price impact; varies by price and time.
Market depthResting orders by level: Displayed order quantities at multiple bid and ask prices.
DOMDepth of market: Ladder interface showing prices and available order-book depth.
Level IIDepth quote display: Multiple quote levels or participants; coverage depends on feed.
Time and salesTrade tape: Sequence of reported executions with price, size, and time.
Aggressive orderLiquidity-taking order: Order that executes against available resting liquidity.
Passive orderLiquidity-providing order: Order resting rather than immediately crossing the spread.
AbsorptionTrading without much progress: Repeated executions absorbed near a price; inferred from order-flow data.
Iceberg orderPartially displayed size: Order displaying only a portion of its total size.
Order-flow deltaBuy minus sell volume estimate: Aggressive buy volume minus aggressive sell volume under the feed's classification.
CVDCumulative volume delta: Running sum of classified order-flow delta; not options delta.
Footprint chartVolume within each bar: Displays traded volume at price levels, often split by bid and ask classification.
ImbalanceUnequal buying and selling: Large relative difference in defined order-flow quantities; methodology matters.
Queue positionPlace among resting orders: Execution priority at a price under venue rules.
Short saleSale of borrowed shares: Selling borrowed stock with an obligation to return it; losses can exceed proceeds.
Short coveringBuying back a short: Purchase that reduces or closes a short position.
Short squeezeForced buying pressure: Sharp rise amplified by shorts buying to reduce exposure.

Options essentials 49

CallRight to buy: Option granting its holder the right to buy the underlying at the strike under contract terms.
PutRight to sell: Option granting its holder the right to sell the underlying at the strike under contract terms.
StrikeExercise price: Contract price used when an option is exercised.
ExpirationContract end date: Date an option expires; trading and exercise deadlines can differ.
DTEDays to expiration: Time remaining until expiration; counting conventions vary.
0DTEExpires today: An option with expiration on the current trading date.
PremiumOption price: Price paid by buyer and received by seller, before costs.
UnderlyingReferenced asset: Security, index, or futures contract an option is based on.
Contract multiplierValue scaling factor: Converts quoted premium into contract value; standard US equity options commonly use 100, but adjusted contracts differ.
ITMIn the money: Call strike below underlying price, or put strike above it.
ATMAt the money: Strike near the current underlying price.
OTMOut of the money: Call strike above underlying price, or put strike below it.
Intrinsic valueImmediate exercise value: Nonnegative difference favorable to exercise, before costs and contract nuances.
Extrinsic valuePremium beyond intrinsic: Option premium minus intrinsic value.
Time decayLoss of time value: Effect of time passing on an option, holding other pricing inputs constant.
IVImplied volatility: Volatility input inferred from market option prices through a pricing model.
HVHistorical volatility: Volatility measured from past price changes.
IV crushDrop in implied volatility: Rapid IV decline that can reduce option value even after a correct directional view.
IV rankIV within a range: Current IV's position between a lookback high and low; provider formulas vary.
IV percentileHistorical IV comparison: Percentage of lookback observations with IV below the current reading.
Volatility skewIV differences by strike: Pattern of implied volatility across strikes for a given expiration.
Term structureIV across maturities: Pattern of implied volatility by expiration.
Open interestOutstanding contracts: Number of open contracts, distinct from daily trading volume; often updated daily.
ExerciseUse contractual right: Holder invokes the option's buy or sell right under its terms.
AssignmentSeller obligation activated: Short option holder is required to perform under contract terms.
Early assignmentAssignment before expiry: Possible for American-style short options before expiration.
American styleExercise before expiry allowed: Exercise can occur before expiration under the contract's rules.
European styleExercise at expiry only: Exercise is restricted to expiration under contract rules.
Cash settlementCash obligation: Settlement uses cash rather than delivery of the referenced asset.
Physical settlementAsset delivery: Exercise or assignment produces delivery of the underlying asset.
BTOBuy to open: Purchase establishing or increasing a long option position.
STCSell to close: Sale reducing or closing a long option position.
STOSell to open: Sale establishing or increasing a short option position.
BTCBuy to close: Purchase reducing or closing a short option position; BTC also means Bitcoin in crypto.
Debit spreadNet-premium-paid spread: Multi-leg options position opened for a net payment.
Credit spreadNet-premium-received spread: Multi-leg options position opened for a net receipt, with remaining obligations.
Vertical spreadSame expiry different strikes: Options of the same type at different strikes and the same expiration.
Calendar spreadDifferent expirations: Options at different expirations, commonly with the same strike.
Diagonal spreadDifferent strikes and expirations: Spread combining different strikes and maturities.
StraddleCall and put same strike: Call and put with the same strike and expiration; can be bought or sold.
StrangleCall and put different strikes: Call and put at different strikes with the same expiration.
Iron condorPaired credit spreads: Commonly an out-of-the-money put credit spread plus call credit spread in one expiration.
ButterflyThree-strike spread: Commonly a 1:-2:1 option structure with equally spaced strikes; variants exist.
Covered callStock plus short call: Long underlying shares with a corresponding short call; upside is capped and downside remains.
Cash-secured putCash-backed short put: Short put backed by sufficient cash for potential share assignment.
Naked optionUncovered short option: Short option without the corresponding covering asset or hedge; substantial loss exposure.
RollClose and reopen: Close an option and open another strike or expiry; does not erase the closed result.
BreakevenZero-result reference: Price where the position's modeled result is zero under stated timing and cost assumptions.
Pin riskNear-strike expiration uncertainty: Uncertainty about exercise or assignment and resulting exposure near a strike.

Greeks & gamma context 22

DeltaUnderlying-price sensitivity: Modeled change in option price for a one-unit underlying move, with other inputs held constant.
GammaDelta sensitivity: Modeled change in delta for a one-unit underlying move.
ThetaTime sensitivity: Modeled effect of time passing; convention and units depend on the platform.
VegaVolatility sensitivity: Modeled premium change for an IV change, commonly one percentage point.
RhoInterest-rate sensitivity: Modeled premium change as interest rates change.
VannaDelta-volatility sensitivity: Change in delta with IV, equivalently change in vega with underlying price under smooth models.
CharmDelta-time sensitivity: Change in delta as time passes; sign conventions differ.
VommaVega-volatility sensitivity: Change in vega as implied volatility changes.
SpeedGamma-price sensitivity: Change in gamma as underlying price changes.
GEXGamma exposure estimate: Model-based aggregate gamma measure; assumptions about positions, units, and signs differ by provider.
DEXDelta exposure estimate: Aggregate modeled delta exposure under a provider's positioning assumptions.
Positive gammaLong-gamma exposure: For a long-gamma hedger maintaining delta neutrality, rising prices can prompt selling and falling prices buying.
Negative gammaShort-gamma exposure: For a short-gamma hedger maintaining delta neutrality, rising prices can prompt buying and falling prices selling.
Gamma flipEstimated sign-change level: Modeled underlying level where net gamma changes sign; not a guaranteed pivot.
Call wallProvider-defined call concentration: A strike identified by a provider's call-positioning metric; not guaranteed resistance.
Put wallProvider-defined put concentration: A strike identified by a provider's put-positioning metric; not guaranteed support.
Zero gammaEstimated neutral-gamma level: Level where the provider's net modeled gamma is approximately zero.
Dealer hedgingInventory-risk adjustment: Transactions used by dealers to manage exposure; actual inventory is usually not directly observable.
Delta neutralNear-zero net delta: Position with approximately zero modeled first-order directional exposure at that moment.
Gamma scalpingDynamic delta hedging: Adjusting the underlying against option gamma; costs and time decay affect results.
Max painExpiry payout estimate: Strike minimizing a simplified payout calculation based on open interest; not a reliable price magnet.
Expected moveModel-based range estimate: Magnitude implied by an option-based or statistical method; not a price boundary.

Futures & instruments 30

Futures contractStandardized forward obligation: Exchange-traded agreement to buy or sell a specified underlying under contract terms.
Tick sizeSmallest price increment: Minimum permitted price change for an instrument.
Tick valueValue of one tick: Dollar change per contract for one minimum price increment.
Point valueValue per price point: Contract's dollar profit or loss for a one-point price move.
Notional valueUnderlying economic exposure: Contract price multiplied by its applicable multiplier or size.
Initial marginOpening performance bond: Required collateral to establish futures exposure; not maximum possible loss.
Maintenance marginOngoing collateral minimum: Minimum account equity required to maintain positions under applicable rules.
Margin callAdditional collateral demand: Request to restore required equity; positions may be liquidated under broker rules.
Mark to marketRevalue at market: Recognizing position gains and losses against market or settlement references.
Front monthNearest relevant expiry: Nearest listed expiration generally used for active trading; rollover conventions vary.
RolloverSwitch contract months: Close exposure in one expiration and establish it in another.
Continuous contractStitched futures history: Chart combining contract months; adjustments and roll rules can change levels.
BasisCash-futures difference: Difference between spot and futures prices under the stated sign convention.
ContangoHigher deferred futures: Futures curve with later contracts priced above nearer contracts.
BackwardationLower deferred futures: Futures curve with later contracts priced below nearer contracts.
ESE-mini S&P 500 futures: CME equity-index futures tracking S&P 500 exposure; consult current contract specifications.
MESMicro E-mini S&P 500 futures: Smaller-sized S&P 500 futures contract.
NQE-mini Nasdaq-100 futures: CME futures providing Nasdaq-100 index exposure.
MNQMicro E-mini Nasdaq-100 futures: Smaller-sized Nasdaq-100 futures contract.
YME-mini Dow futures: Futures providing Dow Jones Industrial Average exposure.
RTYE-mini Russell 2000 futures: Futures providing Russell 2000 index exposure.
CLWTI crude oil futures: NYMEX futures referencing West Texas Intermediate crude oil.
GCGold futures: COMEX futures referencing gold under exchange contract terms.
SPXS&P 500 index: Index value; distinct from SPY shares and ES futures.
NDXNasdaq-100 index: Index tracking a defined portfolio of major Nasdaq-listed nonfinancial companies.
SPYS&P 500 ETF: Exchange-traded fund seeking to track the S&P 500.
QQQNasdaq-100 ETF: Exchange-traded fund seeking to track the Nasdaq-100.
IWMRussell 2000 ETF: Exchange-traded fund seeking small-cap Russell 2000 exposure.
ETFExchange-traded fund: Pooled investment vehicle traded on an exchange.
IndexMarket benchmark: Calculated measure of a defined basket of securities or other assets.

Risk, process & macro 49

LongPositive asset exposure: Position generally benefiting when the asset rises, subject to instrument structure.
ShortNegative asset exposure: Position generally benefiting when the asset falls, subject to instrument structure.
FlatNo open exposure: No position in the referenced instrument or strategy.
EntryPosition initiation: Execution establishing or adding exposure.
ExitPosition reduction: Execution reducing or closing exposure.
Stop lossPlanned loss control: Order or rule intended to limit losses; actual loss can exceed the planned amount.
Take profitPlanned profit exit: Order or rule to reduce exposure at a favorable objective.
InvalidationThesis failure condition: Observation that makes the original trade reasoning no longer applicable.
Position sizingExposure selection: Choosing quantity based on risk budget, instrument behavior, and execution constraints.
RInitial risk unit: Planned initial risk for a trade; actual outcomes may exceed it.
R multipleResult relative to risk: Trade result divided by its defined initial risk.
Risk rewardRisk versus objective: Comparison of planned loss and profit distances or amounts; specify ordering.
DrawdownPeak-to-trough decline: Loss from an account or strategy equity peak to a subsequent trough.
Maximum drawdownLargest observed decline: Greatest peak-to-trough loss over the stated sample.
Realized P&LClosed-position result: Profit or loss recognized on closed exposure, with cost treatment stated.
Unrealized P&LOpen-position result: Marked profit or loss on positions still open; can change before exit.
Gross P&LResult before costs: Profit or loss before the stated fees and other deductions.
Net P&LResult after costs: Profit or loss after the included costs; state which costs are included.
Win rateWinning-trade proportion: Winning closed trades divided by the chosen closed-trade sample.
ExpectancyAverage expected result: Win probability times average win minus loss probability times average loss, with costs handled consistently.
Profit factorGross profits divided by losses: Sum of winning trade profits divided by absolute losing trade losses under stated cost treatment.
Scale inBuild exposure gradually: Add position size across multiple entries.
Scale outReduce exposure gradually: Close portions of a position across multiple exits.
RunnerRemaining position portion: Size left open after partial exits, still carrying market risk.
Averaging downAdding below cost: Adding to a long position at lower prices, increasing total exposure.
HedgeOffsetting exposure: Position intended to reduce a defined risk; may introduce other risks.
CorrelationCo-movement statistic: Measure of association between returns; changes across samples and regimes.
LeverageExposure relative to equity: Controlling market exposure larger than committed equity; magnifies gains and losses.
Buying powerAvailable trade capacity: Broker-calculated capacity under account and margin rules.
FOMOFear of missing out: Pressure to enter because a move is already happening.
Revenge tradingEmotion-driven recovery attempt: Taking trades mainly to win back a prior loss.
OvertradingExcess activity: Trading beyond the strategy's valid opportunities or risk limits.
Trading journalDecision and outcome record: Record of setup, execution, risk, behavior, and results for review.
BacktestHistorical rule evaluation: Test of specified rules on past data; results depend on assumptions and costs.
Forward testProspective rule evaluation: Observe a strategy on newly arriving data, often in simulation.
Paper tradingSimulated execution: Practice trades without live capital; fills and behavior may differ from live trading.
Sample sizeObservation count: Number of trades or events supporting an estimate.
CPIConsumer price index: Measure of changes in prices paid by consumers for a defined basket.
PCEPersonal consumption expenditures: Spending measure; its price indexes are widely watched inflation measures.
NFPNonfarm payrolls: US payroll employment measure excluding specified categories, released in the jobs report.
FOMCFederal Open Market Committee: Federal Reserve committee responsible for US monetary-policy decisions.
GDPGross domestic product: Measure of economic output over a period.
YieldIncome or return measure: For bonds, a return measure tied to price and cash flows; specify the yield convention.
DXYUS Dollar Index: Benchmark measuring the dollar against a defined currency basket.
VIXCboe Volatility Index: Options-implied measure of expected S&P 500 volatility over roughly 30 days; not market direction.
CatalystPotential repricing event: News or event that may alter expectations and market prices.
EarningsCompany results event: Corporate financial report that can change price and implied volatility.
HaltTrading pause: Temporary suspension under exchange or regulatory rules.
Circuit breakerRule-based market pause: Trading interruption triggered by specified market thresholds.

How to use this reference

Learn the meaning, locate it on your chart, then explain what would invalidate your scenario. Definitions describe concepts; they do not establish a profitable strategy. Options Greeks are model estimates, and gamma maps depend on provider assumptions. Contract terms and broker rules control execution and obligations.

HPT shorthand PML, PMH, PDH and 4DL follows the stream clarification supplied October 26, 2026. Other platform-specific labels may use different conventions.

Further reading: SEC Investor.gov — order types · OIC — options Greeks · CME — futures glossary.

Educational reference · Updated October 26, 2026 · Continue in HPT Academy →