A
AMO (after-market order)
An order you place after the market has closed, which your broker sends to the exchange when the next session opens. It is handy if you plan trades in the evening, but the opening price can be far from the last close, so check for a gap.
ATR (Average True Range)
A measure of how much a stock usually moves in a day, averaged over recent sessions (14 is common). A stock at ₹500 with an ATR of ₹15 typically moves about 3% a day, so a stop ₹5 away will be hit by ordinary noise. Many traders set stops as a multiple of ATR, such as 2 × ATR below entry.
Averaging down
Buying more of a stock after its price has fallen, to lower the average buy price. It adds money to a position that is already going against you, so it raises the amount at risk rather than reducing it; risk-based traders usually decide in advance whether their plan allows it. Compare pyramiding.
B
Breakout
A move of the price above resistance or below support, often on higher volume. Many breakouts fail and fall back into the old range, which is why a breakout entry needs a stop-loss decided in advance. See false breakout.
Brokerage
The fee your broker charges for executing an order, either a flat amount per order or a percentage of its value. It is one of several costs on every trade, along with STT, GST, stamp duty and exchange charges; the Trading Charges Calculator adds them up.
BSE
BSE Ltd, formerly the Bombay Stock Exchange, India's oldest stock exchange. Its benchmark index is the Sensex; many stocks trade on both BSE and the NSE.
C
Candlestick
A chart bar showing a period's open, high, low and close. The body spans the open and the close and is usually green when the close is higher and red when it is lower; the thin lines above and below (wicks) show the high and the low. See doji.
Circuit limit
The maximum a stock's price may move up or down in one day, set by the exchange (bands such as 2%, 5%, 10% or 20%). When a stock is locked at its upper or lower circuit, there may be no sellers or no buyers, so orders, including stop-losses, may not fill.
CNC (Cash and Carry)
The order product for delivery trades in shares: you pay the full amount and the shares go into your demat account, to hold as long as you like. Compare MIS and MTF.
Consolidation
A period in which the price moves sideways in a narrow range between support and resistance, often after a strong move. Traders watch consolidations because a breakout from one can start the next move, in either direction.
D
DP charges
Depository participant charges, a fixed fee per stock per day that is levied when shares are taken out of your demat account on a sale. It is the same whether you sell 1 share or 1,000, so it weighs more heavily on small delivery sales.
Doji
A candlestick whose open and close are almost equal, leaving a very thin body. It shows indecision between buyers and sellers; on its own it predicts nothing, and traders look at where it appears and what follows.
Downtrend
A series of lower highs and lower lows, with the price usually below its falling moving averages. Compare uptrend.
Drawdown
The fall in your account from its highest value to a later low, as a percentage. An account that grows to ₹10,00,000 and then falls to ₹8,00,000 is in a 20% drawdown, and it needs a 25% gain to get back to the peak; the Drawdown Recovery Calculator shows how the required gain grows with the loss.
E
EMA (Exponential Moving Average)
A moving average that gives more weight to recent prices, so it turns faster than an SMA of the same length. A 20-day EMA reacts to a sharp move in a day or two, while a 20-day SMA takes longer.
Exchange transaction charges
A small fee the exchange charges on the value of every trade, passed on to you by your broker. The rate differs by exchange and segment, and GST is charged on top of it.
Expectancy
The average amount a trading method makes or loses per trade, usually stated in R. With a 40% win rate, an average win of 2R and an average loss of 1R, expectancy is 0.4 × 2 − 0.6 × 1 = +0.2R per trade. The Edge Calculator works it out from your own numbers.
Expiry
The last day on which a futures or options contract trades; after it, the contract is settled and ceases to exist. Each F&O contract has a fixed expiry date set by the exchange, and option prices lose time value as it approaches.
F
False breakout
A breakout that fails: the price moves past resistance or support and then returns into the old range, often within a few sessions. False breakouts are common, which is why entries above resistance are usually paired with a stop just below it.
F&O (futures and options)
Derivative contracts on stocks and indices whose value depends on the underlying price. They trade in fixed lot sizes, have an expiry, and need only a margin rather than the full contract value, so gains and losses can be large relative to the money put up.
G
Gap
A jump between one session's close and the next session's open, leaving empty space on the chart. A stock that closes at ₹500 and opens at ₹470 has gapped down ₹30, and a stop-loss at ₹490 will fill near ₹470, not at ₹490. Gaps are the main reason a loss can exceed the planned risk per trade.
GST
Goods and Services Tax at 18%, charged on brokerage, exchange transaction charges, the SEBI turnover fee and IPFT, but not on STT or stamp duty. On ₹20 of brokerage, GST adds ₹3.60.
GTT (Good Till Triggered)
An order that waits with your broker, often for many months, until the price reaches a trigger you set; then an order is sent to the exchange. Traders use GTTs to keep a stop-loss and a target in place for delivery holdings without placing a fresh order every day. A GTT does not guarantee a fill at the trigger price, especially on a gap.
H
Higher high
A swing high that is above the previous swing high. Together with higher lows, it defines an uptrend.
Higher low
A swing low that is above the previous swing low, showing that buyers stepped in sooner than last time. Many traders place stops just below the most recent higher low.
I
IPFT
The Investor Protection Fund Trust charge, a very small fee the exchange collects on trade value to fund investor protection. It appears on your contract note alongside the other charges, and GST applies to it.
L
Limit order
An order to buy or sell at a price you name or better. A buy limit at ₹500 fills at ₹500 or lower, or not at all; you control the price but not whether it fills. Compare market order.
Lot size
The fixed number of shares or units in one F&O contract, set by the exchange. You can only trade whole lots, so if one lot's risk is larger than your risk per trade, the trade cannot be sized to fit.
Lower high
A swing high that is below the previous swing high, showing that sellers took over sooner than last time. Together with lower lows, it defines a downtrend.
Lower low
A swing low that is below the previous swing low. A lower low after a series of higher lows is often the first sign that an uptrend has ended.
LTCG (long-term capital gains)
Profit on listed shares or equity mutual fund units held for more than 12 months. As of October 2026 — check current rules: since 23 July 2024 it is taxed at 12.5% on gains above ₹1.25 lakh in a financial year. Compare STCG.
LTP (last traded price)
The price at which the most recent trade in a stock took place. It changes with every trade during market hours.
M
Market order
An order to buy or sell immediately at the best available price. It almost always fills, but you do not control the price, and in a thin or fast market the fill can be well away from the LTP. See slippage.
Measured move
A target set by projecting a pattern's height from its breakout point. If a stock ranges between ₹450 and ₹500 and breaks out at ₹500, the measured move is ₹50, giving a target of ₹550. It is a rough guide, not a promise; many moves stop short.
MIS (Margin Intraday Square-off)
The order product for intraday trades: positions must be closed the same day, and the broker squares off any still open near the close. Compare CNC and NRML.
Moving average
The average closing price over a set number of recent sessions, recalculated each day so it "moves" with the price. Traders use it to judge the trend and as dynamic support or resistance. See SMA and EMA.
MTF (Margin Trading Facility)
A facility in which your broker pays part of the cost of a delivery purchase and charges interest on that part, holding the shares as security. It lets you buy more than your cash allows, so both profits and losses are magnified, and the interest is a cost on every day you hold.
N
Neckline
The line joining the key lows (or highs) of a reversal pattern such as head and shoulders or a double top. A close beyond the neckline is the usual trigger for the pattern, and the pattern's height is projected from it as the measured move.
Nifty
The family of indices run by NSE Indices; "Nifty" alone usually means the Nifty 50, the 50 largest and most liquid stocks on the NSE. Broader indices such as the Nifty 500 track a much larger part of the market.
NRML (Normal)
The order product for carrying F&O positions overnight, up to expiry, with full margin. Compare MIS, which is intraday only.
NSE
The National Stock Exchange of India, the country's largest exchange by trading volume, for both shares and F&O. Its flagship index is the Nifty 50.
O
OCO (One Cancels the Other)
A pair of exit orders, usually a stop-loss and a target, where the fill of one cancels the other. Without OCO, a filled target could leave the stop order live, and it could later sell shares you no longer hold.
Open risk
What you would lose on an open position if its current stop were hit: (average buy price − stop) × quantity. 100 shares bought at ₹500 with a stop at ₹470 carry ₹3,000 of open risk; once the stop is raised above ₹500, open risk turns negative, meaning profit is locked in. Add it across all positions to see your portfolio's total, as the Risk Planner does.
P
Position size
How many shares to buy so that a stop-out loses no more than your risk per trade: quantity = risk per trade ÷ (entry − stop), rounded down. With ₹2,500 to risk, an entry at ₹400 and a stop at ₹380, that is 2,500 ÷ 20 = 125 shares, a ₹50,000 position. The Position Size Calculator does this for you.
Positional trading
Holding trades for weeks to months to ride a larger trend, with wider stops than swing trading. Positions are usually held as delivery (CNC) or with MTF.
Profit factor
Total profit from winning trades divided by total loss from losing trades. Four wins of ₹5,000 and six losses of ₹2,500 give ₹20,000 ÷ ₹15,000 = 1.33; above 1 the method made money before taxes, below 1 it lost.
Pullback
A short move against the trend, such as a dip in an uptrend towards support or a moving average. Some traders buy pullbacks rather than breakouts, because the stop can sit closer.
Pyramiding
Adding to a winning position as it moves in your favour, usually after the stop on the first part has been raised. It increases size only when the trade is working; compare averaging down.
R
R
One unit of risk: the amount you would lose on a trade if its initial stop were hit. If you buy at ₹500 with a stop at ₹480, 1R is ₹20 a share. Measuring results in R lets you compare trades of different sizes. See R-multiple.
R-multiple
A trade's profit or loss divided by its initial risk (R). Bought at ₹500 with a stop at ₹480 (1R = ₹20), an exit at ₹560 is +3R and a stop-out at ₹480 is −1R. Averaging R-multiples over many trades gives your expectancy.
Resistance
A price zone where a rising stock has repeatedly stalled because sellers appear. Once broken, old resistance often acts as support.
Reward-to-risk ratio
The planned profit to the target divided by the planned loss to the stop. Entry ₹500, stop ₹480 and target ₹560 give 60 ÷ 20 = 3:1. A higher ratio lets a method stay profitable with a lower win rate.
Risk-free trade
A trade whose stop has been raised to the entry price or above, so a stop-out no longer loses money on paper. It is not truly risk-free: a gap, slippage and charges can still turn it into a small loss.
Risk per trade
The fixed amount, or share of capital, you accept losing on any one trade if its stop is hit. Many traders keep it around 0.5% to 1% of capital, for example ₹5,000 on ₹10,00,000; it then sets your position size.
RSI (Relative Strength Index)
A momentum indicator from 0 to 100 that compares recent gains with recent losses, usually over 14 sessions. Readings above 70 are often called overbought and below 30 oversold, but in a strong trend RSI can stay there for a long time.
S
SEBI turnover fee
A regulatory fee collected for the market regulator, SEBI, on the value of every trade; for equity it is ₹10 per crore of turnover. It is tiny on a single trade, and GST is charged on it.
SL order (stop-loss limit)
A stop-loss order with two prices: a trigger and a limit. When the price reaches the trigger, a limit order is placed at your limit price; with a trigger at ₹480 and a limit at ₹478, the sale fills only at ₹478 or better. If the price gaps below the limit, it may not fill at all.
SL-M order (stop-loss market)
A stop-loss order that becomes a market order once the trigger price is reached. It almost always fills, but possibly well below the trigger in a fast fall; some segments do not accept SL-M orders.
Slippage
The difference between the price you expected and the price you actually got. A stop at ₹480 that fills at ₹476 has ₹4 of slippage per share; slippage is a real cost and is largest in gaps and thinly traded stocks.
SMA (Simple Moving Average)
A moving average that weights every session equally. Closes of ₹100, ₹102, ₹104, ₹106 and ₹108 give a 5-day SMA of ₹104. The 50-day and 200-day SMAs are widely watched.
Stamp duty
A government duty charged on the buy side of a trade only, as a small percentage of its value. As of October 2026 — check current rates — it is 0.015% for equity delivery, which is ₹15 on a ₹1,00,000 purchase.
STCG (short-term capital gains)
Profit on listed shares or equity mutual fund units held for 12 months or less. As of October 2026 — check current rules: since 23 July 2024 it is taxed at 20%. Compare LTCG.
Stop-loss
The price at which you will exit a losing trade, decided before you enter. It caps the loss on that trade and is the basis of R and position size. It can be placed with the broker as an SL, SL-M or GTT order.
STT (Securities Transaction Tax)
A tax on the value of trades in listed securities. As of October 2026 — check current rates — equity delivery attracts 0.1% on both the buy and the sell, so a ₹1,00,000 purchase later sold for ₹1,00,000 pays ₹200 in STT; intraday and F&O rates are lower and apply to the sell side.
Support
A price zone where a falling stock has repeatedly stopped because buyers appear. Stops are often placed just below support; once broken, old support often acts as resistance.
Swing trading
Holding trades for a few days to a few weeks to capture one swing in price. Compared with positional trading, stops are tighter and trades more frequent, so charges matter more.
T
Target
The price at which you plan to take profit, set before the trade from a level such as resistance or a measured move. Together with the stop, it gives the reward-to-risk ratio.
Trailing stop
A stop that is moved up as the price rises, but never down. Bought at ₹500 with a stop at ₹480, you might raise the stop to ₹500 when the price reaches ₹540, and to ₹530 at ₹570, locking in profit while giving the trade room.
Trendline
A straight line drawn through two or more swing lows in an uptrend, or swing highs in a downtrend. A decisive break of the line is a warning that the trend may be changing, though it is not a signal on its own.
U
Uptrend
A series of higher highs and higher lows, with the price usually above its rising moving averages. Compare downtrend.
V
Volume
The number of shares traded in a period. A breakout on volume well above average is generally treated as more convincing than one on thin volume.
W
Win rate
The share of trades that made money. A 40% win rate can still be profitable if the average win is large enough compared with the average loss; see expectancy and the Edge Calculator.
TradeYantra terms
MOR — Maximum Open Risk
The most your whole portfolio may lose at once if every open stop is hit. You set it as a percentage of the capital you have deployed: ₹5,00,000 at 5% gives an MOR of ₹25,000. TradeYantra warns when your Total O-Risk reaches 80% of MOR and refuses new orders that would take it past 100%. With Market Stance on MOR switched on, a bad market sets MOR to 0.
Market Stance on MOR
A setting in Parameters. When it is on, a daily reading of market breadth (Bad, Weak, Normal or Favourable) scales your MOR down in weaker markets, and a Bad market sets it to 0, so no new trade is sized until conditions improve. When it is off, MOR is simply capital × MOR%.
RPT — Risk Per Trade
Your MOR divided by the most trades you want open at once: ₹25,000 across 10 trades gives an RPT of ₹2,500. Every position is sized so that a stop-out costs no more than RPT, with the quantity always rounded down (see position size).
O-Risk — Open Risk of a position
What one position would lose if its current stop were hit: (average buy price − stop) × remaining quantity. It uses your manual stop if you have set one, and turns negative once the stop is above your average buy, meaning profit is locked in. See open risk.
Total O-Risk
What your whole book would lose if every current stop were hit: the sum of O-Risk across all open positions. Positions whose stops are above entry count as negative, so as trades de-risk themselves, Total O-Risk falls and room opens for new trades.
RRB — Remaining Risk Budget
How much risk you can still take on: MOR − Total O-Risk. With an MOR of ₹25,000 and a Total O-Risk of ₹15,000, RRB is ₹10,000.
ATC — Available Trade Capacity
How many more full-size trades fit in your remaining risk budget: RRB ÷ RPT, rounded down, and never below zero. An RRB of ₹10,000 with an RPT of ₹2,500 gives an ATC of 4; when Total O-Risk is negative, ATC can rise above your planned number of trades.
ISL — Initial Stop Loss
The stop worked out when a trade is entered, from the stop formula of the strategy it belongs to. It is the stop the position was sized against, so it defines the trade's R and does not move when the stop is later trailed.
DSL% — Distance to Stop-Loss
How far the last closing price is from the stop-loss, in percent: (close − stop) ÷ close × 100, updated once a day. A stock that closed at ₹500 with a stop at ₹470 shows a DSL% of 6%. A manual stop, if set, is used in place of the formula's.
DTGT% — Distance to Target
How far the last closing price is from the target, in percent: (target − close) ÷ close × 100, updated once a day. A stock that closed at ₹500 with a target at ₹560 shows a DTGT% of 12%.
Strategy
A named set of formulas that decide each trade's initial stop, how the stop trails and when targets are taken, stage by stage. Each position is tagged with a strategy, and its ISL comes from that strategy's first-stage stop formula. Earlier versions of the app called it a stance.
o_ prefix
In a strategy formula, a value starting with o_ (or O_) is calculated as of the date of the order that opened the trade, so it does not change afterwards. For example, o_threedll is the three-day low as of that order date, while threedll without the prefix is recalculated every day.
Updated 2026-10-16
Educational content only. It is not investment advice and not a recommendation to buy or sell any security. Prices in examples and illustrations are made up. Patterns and rules fail often; past behaviour guarantees nothing.