Investing & Trading Terms, Explained
Chart patterns and options jargon get thrown around as though everyone already knows them. This section covers the indicators, the option mechanics and the market phrases that fill trading commentary, each at three depths plus a slang version. These are explanations of the vocabulary, not advice about what to buy.
Featured
What are Call and Put Options?
The right to buy or sell at a locked price, and why buyers risk only the premium.
How do Candlestick Charts Work?
Four prices, one shape — how a candle shows who controlled the session at a glance.
What is a Short Squeeze?
When short sellers are forced to buy — and their own buying drives the price they're fleeing.
All 16 terms
What are Bollinger Bands?
A 20-day average with self-sizing boundaries — a live map of how volatile a stock has been.
What is a Breakout (and a Fakeout)?
Price finally passing a level it kept failing at — and the three checks that separate real from fake.
What are Call and Put Options?
The right to buy or sell at a locked price, and why buyers risk only the premium.
How do Candlestick Charts Work?
Four prices, one shape — how a candle shows who controlled the session at a glance.
What is Delta in Options?
How much of each $1 stock move your option captures, and its three readings.
What is Gamma in Options?
Why option sensitivity accelerates, and how that snowballing fuels gamma squeezes.
Golden Cross vs. Death Cross: What do they Signal?
The 50-day average crossing the 200-day — what it means, why it's late, and why millions watch.
What is Implied Volatility?
The move the market expects, priced into options, and why IV crush burns earnings bets.
What is the MACD Indicator?
Two price averages, one gap — how traders read whether a trend is speeding up or fading.
What is the RSI (Relative Strength Index)?
A 0–100 gauge of how hard price has been sprinting — and why 70 isn't a sell button.
What is a Short Squeeze?
When short sellers are forced to buy — and their own buying drives the price they're fleeing.
SMA vs. EMA: What's the Difference?
Equal votes vs. recent-days-count-extra — the steadiness-versus-speed choice behind trend lines.
What is Standard Deviation?
How far the numbers wander from their average — the spread two identical averages can hide.
What are Support and Resistance Levels?
The price floors and ceilings where buyers and sellers keep showing up — and what a break means.
What is Theta Decay?
Why options lose value every day the clock runs, and who collects that daily drip.
What does Volume tell you in Trading?
Shares traded = participation — how much agreement stood behind a price move.