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Basic Trading Terms

Basic Trading Terms
Term Rephrased Definition
BUY (Recommendation) Suggests opening a long position expecting the price to rise.
FUT / FUTURE A standardized contract to buy/sell a stock at a fixed price on a future date.
CE (Call Option – European Style) Gives the buyer the right (not obligation) to purchase the asset at the strike price on/before expiry.
ENTRY ZONE / ENTRY ABOVE X The price level above which the trade becomes active.
TARGET / TG The price level at which profits are taken.
TARGET 1 (T1) The first profit-taking level in a trade.
TARGET 2 (T2) The secondary, typically higher, profit target after T1.
STOPLOSS (SL) A predefined level to exit a losing trade and limit losses.
INTRADAY A trade opened and closed within the same day.
CMP (Current Market Price) The real-time trading price of the asset at the moment.
BTST (Buy Today Sell Tomorrow) A trade where a position is bought today and sold the next trading day.
STBT (Sell Today Buy Tomorrow) A short-sell trade executed today and closed by buying back the next trading day.
POSITION TYPES
Term Rephrased Definition
Stock Future / Stock Option / Cash Specifies the trading instrument—Futures, Options, or Cash segment.
Position Size The quantity or number of units/shares/contracts taken in a trade, determining risk and exposure.
TRADE OUTCOME & MANAGEMENT TERMS
Term Rephrased Definition
TG Booked Profit captured as the target is reached.
SL Triggered / SL Hit Stoploss level crossed and trade exited to prevent further losses.
Partial Profit Booked A portion of the position is closed to secure profits.
Full Profit Booked The entire trade is closed after reaching the target levels.
Revise SL to Cost Moving the stoploss to the entry price, making the trade risk-free.
Revise SL Adjusting stoploss to protect gains as the price moves in favor.
Book Near Target Closing the trade slightly before the exact target price.
Exit Near Cost Exiting around the entry level due to weak price movement.
Buy Above / Sell Below Trade triggers: buy after upside breakout, sell after downside breakout.
Buy Range A recommended price zone for initiating a buy trade.
Target Achieved Confirms that the target level is successfully hit.
Conservative Trader Prefers low-risk trades with smaller, safer targets.
Risky Trader Accepts higher risks for potentially larger returns.
Strike Price The predetermined price for exercising an option (buying CE or selling PE).
Call / CE A call option enabling the holder to buy at the strike price.
Put / PE A put option enabling the holder to sell at the strike price.
SL / Stoploss Defined level to minimize losses.
Hold Continue holding the position without exiting.
Close All Positions Instruction to exit every open trade, often during volatility.
Intraday Trade completed within the same trading day.
Expiry The date an option contract becomes invalid.
OPTION-SPECIFIC TERMS
Term Rephrased Definition
Call Option Strike Price The fixed price at which a call option buyer can purchase the underlying asset.
Expiry (Options) Final date by which the option must be exercised or squared off.
DISCLOSURE TERMS
Term Rephrased Definition
Material Adverse Disciplinary History Any significant past legal or regulatory action against the analyst or research entity.
Financial Interest Indicates ownership or financial stake in the recommended stock by the analyst or associates.
Conflict of Interest Any relationship that may influence the analyst’s recommendation.
Beneficial Ownership >1% Disclosure that the analyst or related persons own more than 1% of the stock.
Compensation Whether the analyst received payment or benefits from the recommended companies.
Market Making Providing liquidity by continuously buying/selling securities.