Blog by PriyaSahu

In options trading, historical volatility shows how much a stock moved in the past, while implied volatility shows how much the market thinks it will move in the future. Comparing both helps traders decide if an option is expensive or cheap. It is useful for choosing the right strategy and mana...

Iceberg orders are very useful in large-scale trading because they allow big traders to buy or sell large quantities of shares without revealing the full size of their order to the market. Only a small part of the order is visible to others. This helps avoid sudden changes in price and protects...

Implied volatility in options trading shows how much price movement the market expects in the future for a stock or index. It plays a big role in deciding the premium (price) of an option. High implied volatility means bigger expected moves, so option prices go up. Low implied volatility m...

Index arbitrage in quantitative trading means buying and selling index-related securities to profit from small price differences between the index and its underlying stocks. It helps traders earn low-risk profits by using computers and algorithms to act quickly when such price gaps appear.

The Information Ratio helps you know how well a mutual fund is performing compared to its benchmark, after adjusting for risk. A higher Information Ratio means the fund manager is doing a good job giving you better returns without taking extra risk. It is an important number to check when ...

Initial DEX Offerings (IDOs) are a way for new crypto projects to raise money directly on a decentralized exchange. IDOs allow regular users to buy tokens early, often at a low price, before they are available to everyone. This gives small investors a chance to invest early in growing proj...

Inside bars are an important pattern in price action trading. They occur when the current price bar (candle) is completely inside the previous bar. This signals that the market is in a period of consolidation and could be preparing for a breakout. Traders use inside bars to identify potent...

Insider buying and selling refers to when executives or directors of a company buy or sell shares of their own company’s stock. This activity is considered important because it can give clues about how insiders feel about the company’s future. If they are buying, it could mean they believe...

Insider trading reports tell you what company insiders, like executives and directors, are doing with their own stocks. If they are buying, it could mean they are confident in the company. If they are selling, it could mean the opposite. Investors use these reports to decide whether or not...

Insider trading reports reveal transactions made by company insiders, such as executives, directors, and employees. These reports provide valuable information about how insiders view the company’s future performance. If insiders are buying shares, it may indicate their confidence in the co...

Interest rate differentials refer to the difference in interest rates between two currencies in a forex pair. This differential plays a crucial role in determining the strength or weakness of a currency. When one country's interest rate is higher than another's, it can attract capital flow...

Interest rate futures are financial contracts that allow investors to hedge or speculate on the future direction of interest rates. These futures contracts are based on an underlying interest rate, such as LIBOR, the federal funds rate, or bond yields. By using interest rate futures, trade...

Inventory turnover is a key financial metric that shows how quickly a company sells and replaces its stock of goods over a given period. High inventory turnover typically indicates strong sales, efficient management of inventory, and better liquidity, while low inventory turnover can signa...

In stock trading, the IPO lock-up expiration refers to the period following an initial public offering (IPO) when insiders (such as company executives, employees, and institutional investors) are restricted from selling their shares. Once the lock-up period expires, these insiders are free...

In options trading, the Implied Volatility (IV) percentile is a crucial metric used to assess how high or low the current implied volatility is relative to its historical values. Understanding the IV percentile helps traders gauge whether options are relatively cheap or expensive based on ...

Journaling in trading refers to the practice of keeping a detailed record of all your trades, emotions, strategies, and outcomes. It is an essential tool in improving trading psychology. By analyzing past trades, you can identify patterns, recognize emotional triggers, and refine your trad...

Jump risk in option pricing refers to the possibility of sudden, large price changes in an underlying asset. These jumps are not captured by traditional option pricing models like Black-Scholes, which assumes continuous price movements. Understanding jump risk is crucial for accurate optio...

Kagi charts are a popular tool in technical trading because they help traders identify trends in the market by focusing on price movements rather than time. They are particularly useful in spotting reversals in market direction and can help traders make more informed decisions. If you want...

In algorithmic trading, latency refers to the delay between the initiation of a trade and its execution. A lower latency means that the trading system can execute orders faster, which is critical in high-frequency trading where every millisecond counts. Latency can impact the profitability...

Level 2 market data is a crucial tool for active traders. Unlike the basic Level 1 data, which only provides the best bid and ask prices, Level 2 data shows the complete order book. It includes additional information like the quantity of shares being bid or offered at various price levels....