Glossary

Arbitrage

An arbitrage is a trading strategy that involves buying and selling similar assets in different markets to take advantage of the price difference. It involves buying an asset in one market at a lower price and simultaneously selling it in another market at a higher price.

Bearish Engulfing Pattern

A Bearish Engulfing Pattern is a two-candle candlestick reversal pattern that appears at the end of an uptrend, signalling a potential shift from bullish to bearish momentum. It is considered one of technical analysis' most reliable bearish reversal signals.

Chart Patterns

Chart patterns are visual formations created by the price movements of a stock (or any other asset) on a chart. Traders and technical analysts use these patterns to predict future price movements based on historical behaviour.

Daily Margin Statement

A Daily Margin Statement is a report issued by brokers to traders detailing margin requirements, available balance, utilised margin, and any shortfalls in their trading account for a given trading day. It helps traders track their margin status and ensures compliance with regulatory requirements.

Dark Cloud Cover Pattern

The Dark Cloud Cover pattern is a bearish reversal candlestick pattern that typically appears at the top of an uptrend. It signals that the upward momentum might be slowing down and that a potential trend reversal to the downside could be coming.

Demat Account

A Demat account is an electronic account that stores your shares and other investments in digital form, making it easy to buy, sell, and manage them without physical paperwork.

Doji Candlestick Pattern

A Doji candlestick pattern is a type of candlestick that represents market indecision. It forms when a security’s opening and closing prices are nearly equal, resulting in a candle with a very small or non-existent body and long or short wicks (shadows) on either side.

Equity Instruments

Equity instruments are financial tools that give you ownership in a company. When you buy an equity instrument, such as a stock, you become a part-owner of the company. This means you share in the company's profits and losses.

Exposure Margin

Exposure margin is a type of margin that brokers charge to help protect against market fluctuations and potential losses in futures and options (F&O) trading. It is often referred to as an additional margin.

Gravestone Doji

A Gravestone Doji is a bearish reversal candlestick pattern used in technical analysis. It forms when the open, low, and close prices are nearly identical, with a long upper shadow and little to no lower shadow.