Glossário de negociação

Pre-trade analysis Pre-trade analysis is the assessment of a proposed stock order or basket before placement, estimating execution costs, liquidity and risk to inform the investor’s decision and execution approach. Post-trade analysis Post-trade analysis is the review of a completed trade against its original decision price, execution plan and actual fills to understand execution costs and outcomes. Transaction cost analysis (TCA) Transaction cost analysis (TCA) is the measurement or estimation of a trade’s execution costs against a defined price benchmark, including effects such as spread, market impact and fees. Bid-ask spread Bid-ask spread is the difference between the lowest displayed price to sell a stock (ask) and the highest displayed price to buy it (bid), measured per share. Effective spread Effective spread is twice the distance between a trade’s execution price and the prevailing bid-ask midpoint, expressed per share or as a percentage of that midpoint. Realized spread Realized spread is twice the signed difference between a trade’s execution price and the market midpoint measured later, indicating how much of the initial spread remains after a specified interval. Midpoint price Midpoint price is the price halfway between the current best bid and best ask for a security, calculated as their arithmetic average. Slippage Slippage is the difference between a trade’s expected price and its actual fill price, expressed per share, as a percentage or in total dollars. Market impact Market impact is the price movement attributable to executing a trade, as the order consumes available liquidity or prompts other market participants to adjust their prices. Implementation shortfall Implementation shortfall is the difference between a trade’s hypothetical value at the decision price and its actual outcome, including execution costs and the cost of unfilled shares. Transaction costs Transaction costs are the explicit fees and implicit trading costs incurred when executing a trade, including commissions, the bid-ask spread and market impact. Execution cost Execution cost is the amount paid to complete a trade beyond a chosen reference price, including the effect of the fill price and, when specified, trading fees. Commission Commission is a fee a broker charges for handling a trade, stated per order, per share, or as a percentage of trade value. Market order Market order is an instruction to buy or sell a security at the best available price when the order reaches the market, without setting a maximum buy price or minimum sell price. Limit order Limit order is an instruction to trade at a specified price or better: a buy cannot execute above its limit, and a sell cannot execute below its limit. Stop order Stop order is an instruction that becomes a market order when a specified stop price is reached, so its execution price can differ from the stop price. Stop-limit order Stop-limit order is an instruction that, once a specified stop price is reached, becomes a limit order that can execute only at its limit price or better. Marketable limit order Marketable limit order is a limit order priced to execute immediately against available opposite-side quotes, while setting a maximum buy price or minimum sell price. Time in force Time in force is an order instruction that specifies how long an order remains eligible for execution before it expires or is canceled. Day order Day order is an order instruction that keeps an unfilled stock order active only for the applicable trading day, after which the broker cancels any remaining quantity. Good-til-canceled (GTC) order Good-til-canceled (GTC) order is an order that remains active across trading days until it fills, is canceled, or reaches a broker- or venue-imposed expiration. Fill or kill (FOK) Fill or kill (FOK) is a time-in-force instruction requiring an order to execute in full immediately at its permitted price or better; otherwise, the entire order is canceled. Immediate or cancel (IOC) Immediate or cancel (IOC) is a time-in-force instruction to execute an order immediately to the extent possible and cancel any unfilled quantity rather than leave it open. Partial fill Partial fill is the execution of fewer shares than an order requests, leaving a remaining quantity that may stay open or be canceled under the order’s conditions. VWAP (volume-weighted average price) VWAP (volume-weighted average price) is the average price of a stock over a specified trading period, weighted by the number of shares traded at each price. TWAP (time-weighted average price) TWAP (time-weighted average price) is the arithmetic average of a security’s prices observed at equally spaced times over a specified period, or an execution schedule designed to trade at a roughly constant rate over that period. Arrival price Arrival price is the market price recorded when an investment decision or order reaches the trading desk, used as a benchmark for measuring subsequent execution costs. Opening auction Opening auction is an exchange process that collects eligible buy and sell orders before regular trading and matches them at a single opening price determined under that exchange’s rules. Closing auction Closing auction is an exchange process that matches eligible buy and sell orders at a single price near the end of the trading session, establishing the official closing price. Best execution Best execution is a broker’s duty to seek the most favorable reasonably available outcome for a client’s order, considering factors such as price, costs, speed and likelihood of execution. Payment for order flow Payment for order flow is compensation a broker receives for routing customer orders to a particular market maker or other trading venue rather than routing solely on execution terms. Price improvement Price improvement is a fill at a better price than a specified reference quote: below the ask for a buy or above the bid for a sell. Tick size Tick size is the smallest permitted price increment for a security’s displayed quotes or orders under the rules of its trading venue. Round lot Round lot is a standard trading quantity for a security; for many US stocks it has traditionally been 100 shares, but the applicable size can vary by security and market. Odd lot Odd lot is a stock trade or order for fewer shares than the applicable round-lot size, commonly fewer than 100 shares for a US-listed stock. Fractional shares Fractional shares are holdings of less than one whole share of stock, typically created through a broker's dollar-based purchases, dividend reinvestment, or corporate actions. Order book Order book is a record of currently available buy and sell orders for a security, organized by price and quantity, that shows displayed liquidity at a particular venue or across specified venues. Level 2 quotes Level 2 quotes are a real-time display of bid and ask prices and displayed share quantities at multiple price levels, offering a view of order-book depth beyond the best bid and ask. Participation rate Participation rate is the percentage of a stock’s trading volume represented by an order or executed trades over a specified period, indicating how large the trade is relative to market activity. Algorithmic trading Algorithmic trading is the use of computer-coded rules to generate, route, or execute orders automatically according to specified conditions. Smart order routing Smart order routing is a broker or trading system's automated process for directing an order among eligible execution venues according to available prices, liquidity, order instructions and routing rules. Dark pool Dark pool is a private trading venue where stock orders are not displayed publicly before execution, although completed trades are reported under applicable market rules. Almgren-Chriss model Almgren-Chriss model is a framework for scheduling an order over time by balancing expected market-impact costs against the risk of price moves while execution remains unfinished. Kyle’s lambda Kyle’s lambda is a measure of price impact per unit of signed trading volume, estimated from how much prices move in response to net buying or selling. Square-root law of market impact Square-root law of market impact is an empirical rule of thumb under which estimated price impact scales with daily volatility times the square root of an order’s size relative to trading volume. Execution strategy Execution strategy is a plan for placing and managing a trade, including order type, timing, size, and price conditions, to balance execution cost, speed, and the risk of not getting filled. Basket trading Basket trading is the execution of trades in multiple stocks as a coordinated group, with each stock specified as a separate line and the combined costs and exposures assessed alongside individual trades.

Liquidity Liquidity is the ability to buy or sell an asset promptly in the desired quantity without substantially moving its price or incurring excessive trading costs. Average daily volume (ADV) Average daily volume (ADV) is the average number of shares traded per trading day over a specified period, used to gauge a stock’s typical trading activity. Dollar volume Dollar volume is the monetary value of shares traded over a period, calculated by adding each trade’s share price multiplied by its share quantity. Turnover Turnover is the number of shares traded over a period, or that trading volume expressed as a percentage of shares outstanding or free float. Free float Free float is the number of a company’s outstanding shares available for public trading after excluding shares held by insiders or other holders whose stakes are not readily traded. Market depth Market depth is the quantity of buy and sell orders available at different prices in an order book at a particular moment. Liquidity risk Liquidity risk is the possibility that a stock cannot be traded in the desired quantity and time without a materially worse price or an incomplete fill. Illiquid stock Illiquid stock is a stock that may be difficult to trade in the desired quantity or timeframe without a substantial spread, price impact, or delay. Days to liquidate Days to liquidate is an estimate of how many trading days it would take to sell a position at a specified share of a stock’s average daily volume. Amihud illiquidity ratio Amihud illiquidity ratio is the average daily absolute stock return divided by daily dollar trading volume, indicating how much prices move relative to the value traded. Liquidity tier Liquidity tier is a category based on a stock’s average daily dollar trading volume, used to assign a baseline estimate of its bid-ask spread. Daily liquidity ratio (DLR) Daily liquidity ratio (DLR) is an order’s share of a stock’s average daily trading volume, expressed as a percentage to show its size relative to typical daily activity. Trading halt Trading halt is a temporary pause in trading a security, imposed by an exchange or regulator, during which orders generally cannot execute on the affected market. Circuit breaker Circuit breaker is an exchange rule that temporarily pauses trading when a market index or individual stock moves beyond a specified threshold, allowing time for orders and information to be reassessed. American depositary receipt (ADR) American depositary receipt (ADR) is a US-traded certificate issued by a depositary bank that represents a specified number of shares in a non-US company. Cross-listing Cross-listing is a company's listing of its shares on more than one stock exchange, giving investors access to the stock through multiple trading venues. Market maker Market maker is a firm that regularly quotes prices to buy and sell a security, supplying liquidity while managing the risk of holding inventory. Liquidity provider Liquidity provider is a market participant that makes shares available for others to trade, typically by posting a bid to buy, an offer to sell, or both. Penny stock Penny stock is a loosely defined term for a low-priced share, often one trading below US$5, whose low price alone does not establish its value or liquidity. OTC market OTC market is a decentralized market where securities trade through broker-dealer networks rather than on a centralized stock exchange.

Volatility Volatility is a measure of how widely an asset’s returns vary over a specified period, usually expressed as the standard deviation of returns. Historical volatility Historical volatility is a measure of how widely a stock’s returns varied over a past period, usually expressed as the standard deviation of returns at a specified daily or annualized frequency. Implied volatility Implied volatility is the annualized volatility of an underlying asset that makes an option-pricing model match an option's observed market price, given the model's other inputs. Annualized volatility Annualized volatility is the standard deviation of returns expressed on a one-year scale, commonly calculated by multiplying daily return volatility by the square root of 252 trading days. Daily volatility Daily volatility is the estimated standard deviation of a stock’s returns over one trading day, usually expressed as a percentage of its price. Parkinson volatility estimator Parkinson volatility estimator is a measure of historical price variability that uses a stock’s daily highs and lows, rather than its closing prices, to estimate volatility. Yang-Zhang volatility estimator Yang-Zhang volatility estimator is a measure of historical price variability that combines overnight opening gaps with intraday open-to-close and high-low movements. GARCH model GARCH model is a statistical method for estimating changing volatility by using past return shocks and past estimates of volatility. Value at risk (VaR) Value at risk (VaR) is an estimate of the loss threshold that a position or portfolio is expected to exceed with a specified probability over a specified time horizon. Expected shortfall (CVaR) Expected shortfall (CVaR) is the average loss in the worst specified fraction of outcomes over a stated time horizon, assuming a defined loss distribution. Standard deviation Standard deviation is a measure of how widely observations, such as daily stock returns, vary around their average, expressed in the same units as those observations. Beta Beta is a measure of how sensitively an asset’s returns have moved with a chosen market benchmark, calculated as their return covariance divided by the benchmark’s return variance. Alpha Alpha is the difference between an investment’s realized return and the return predicted by a specified risk-adjusted benchmark model, usually expressed in percentage points. Drawdown Drawdown is the percentage decline in an investment or portfolio from its previous peak value to a later value before that peak is regained. Maximum drawdown Maximum drawdown is the largest percentage decline from a prior peak to a subsequent low in an investment’s value over a specified period. Sharpe ratio Sharpe ratio is a measure of historical excess return per unit of return volatility, calculated as average return minus the risk-free rate, divided by the standard deviation of returns. Sortino ratio Sortino ratio is a measure of return above a chosen target per unit of downside deviation, counting returns below the target rather than all fluctuations as risk. Risk-reward ratio Risk-reward ratio is the amount a trade could lose before a chosen exit relative to the amount it could gain before a chosen target, commonly expressed as 1:2. Stop-loss Stop-loss is a planned exit from a position if its price reaches a specified threshold, intended to limit losses but unable to guarantee a maximum loss or an execution price. Trailing stop Trailing stop is a stop order whose trigger follows a favorable price move by a fixed amount or percentage but does not move back when the price reverses. Position sizing Position sizing is the process of deciding how many shares to hold or trade based on available capital, intended portfolio weight and the amount of risk an investor is prepared to take. Kelly criterion Kelly criterion is a position-sizing formula that estimates the fraction of capital maximizing long-run expected logarithmic wealth, given reliable probabilities of gains and losses and their payoff sizes. Risk per trade Risk per trade is the estimated amount or percentage of account equity that could be lost on one trade if an assumed exit price is reached, excluding losses beyond that price. Fixed fractional position sizing Fixed fractional position sizing is a method that sets each trade’s planned loss at a constant percentage of current account equity and calculates share quantity from the loss allowed per share. Volatility targeting Volatility targeting is a position-sizing approach that adjusts exposure according to estimated volatility so the portfolio or position aims for a specified level of return variability. Gap risk Gap risk is the possibility that a stock’s next available trading price jumps above or below its previous price, causing a fill or loss beyond the level expected. Overnight risk Overnight risk is the possibility that a stock’s value changes while its main exchange is closed, leaving an investor unable to trade at the previous closing price. Event risk Event risk is the possibility that a specific announcement or occurrence causes an abrupt change in a stock’s price, liquidity or trading conditions. Tail risk Tail risk is the possibility of an unusually large gain or loss in the extreme ends of a return distribution, with downside tail risk referring specifically to severe losses. Correlation Correlation is a unitless measure, from −1 to +1, of how closely two variables move together in a linear relationship. Covariance Covariance is a measure of how two variables, such as stock returns, move together relative to their respective averages. Systematic risk Systematic risk is the part of investment risk driven by broad market factors that affect many securities and cannot be eliminated simply by holding more stocks. Idiosyncratic risk Idiosyncratic risk is the risk of a stock moving for company-specific reasons rather than because of broad market movements. Currency risk Currency risk is the possibility that exchange-rate changes alter the value of an investment or its cash flows when measured in the investor’s home currency. Concentration risk Concentration risk is the possibility of outsized portfolio losses when too much exposure depends on one stock, sector, country, or other shared source of risk. Leverage Leverage is the use of borrowed money or other financing to gain market exposure greater than the investor’s own capital, magnifying gains and losses relative to that capital. Margin trading Margin trading is the use of money borrowed from a broker to purchase securities, increasing both the size of the position and the potential for losses relative to the investor’s own capital. Margin call Margin call is a broker’s demand that an investor restore a margin account’s equity after it falls below the broker’s required maintenance level. Short selling Short selling is the sale of borrowed shares with the aim of buying them back later at a lower price; losses can grow without a fixed upper limit if the share price rises. Short squeeze Short squeeze is a rapid rise in a stock’s price as short sellers buy shares to close their positions, potentially adding to the buying pressure. Risk tolerance Risk tolerance is the amount of potential investment loss and uncertainty an investor is willing to accept without abandoning their financial plan. Success probability Success probability is a model-estimated percentage attached to a pre-trade verdict, expressing the model’s assessed chance of meeting its defined success criteria, not the chance of earning a return.

Diversification Diversification is the practice of spreading a portfolio across holdings with different sources of risk so that its outcome depends less on any single holding. Portfolio concentration Portfolio concentration is the extent to which a portfolio’s value depends on a small number of holdings or on shared exposures such as a sector or country. Herfindahl-Hirschman index (HHI) Herfindahl-Hirschman index (HHI) is a measure of portfolio concentration calculated by summing the squared weights of its holdings; higher values indicate more weight concentrated in fewer holdings. Effective number of stocks Effective number of stocks is the number of equally weighted holdings that would have the same weight-based concentration as a stock portfolio, calculated as one divided by the sum of squared holding weights. Sector exposure Sector exposure is the share of a portfolio’s value allocated to companies in a particular industry sector, usually expressed as a percentage. Country exposure Country exposure is the share of a portfolio’s value assigned to each country under a stated classification rule, showing how much of the portfolio is concentrated in particular countries. Market capitalization Market capitalization is a company's share price multiplied by its outstanding shares, giving the market value of its equity at a point in time. Large-cap stocks Large-cap stocks are shares of publicly traded companies with relatively high market capitalizations, commonly classified in the US as US$10 billion or more, though thresholds vary by source. Mid-cap stocks Mid-cap stocks are shares of companies whose market capitalization falls in a middle-sized range, commonly around US$2 billion to US$10 billion, although thresholds vary by index and data provider. Small-cap stocks Small-cap stocks are shares of companies with relatively low market capitalization, commonly classified in the US as roughly US$300 million to US$2 billion, although thresholds vary by index and provider. Portfolio rebalancing Portfolio rebalancing is adjusting holdings to bring a portfolio’s current weights closer to chosen target weights after prices or circumstances change. Asset allocation Asset allocation is the division of a portfolio among asset classes, such as stocks, bonds and cash, expressed as percentages of the portfolio’s total value. Exchange-traded fund (ETF) Exchange-traded fund (ETF) is an investment fund whose shares trade on a stock exchange, giving investors exposure to a portfolio of assets through a single traded security. ETF overlap ETF overlap is the extent to which two or more exchange-traded funds hold the same underlying securities, potentially concentrating a portfolio in those holdings. Index fund Index fund is an investment fund designed to track a specified market index by holding its constituents, or a representative sample, rather than selecting securities to outperform it. Equal weighting Equal weighting is a portfolio method that assigns the same target percentage of invested value to each holding, regardless of its market capitalization or share price. Market-cap weighting Market-cap weighting is a method of assigning portfolio or index weights in proportion to each company's market capitalization, so larger companies account for a greater share. Portfolio turnover Portfolio turnover is the value of securities replaced through trading during a period, commonly measured as the lesser of purchases or sales divided by average portfolio value. Tracking error Tracking error is the standard deviation of a portfolio’s returns minus a benchmark’s returns over a specified period, showing how variably the portfolio has diverged from that benchmark. Dollar-cost averaging Dollar-cost averaging is an investment schedule that puts a fixed dollar amount into an asset at regular intervals, regardless of its price, so the amount purchased varies. Averaging down Averaging down is buying additional shares of a stock after its price falls, lowering the average purchase price per share while increasing the amount invested in that stock. Modern portfolio theory Modern portfolio theory is a framework for comparing portfolios by expected return and risk, using asset weights and correlations to identify combinations with the lowest modeled risk for a given expected return. Efficient frontier Efficient frontier is the set of portfolios offering the highest estimated expected return for each level of volatility, or the lowest volatility for each estimated expected return, under specified assumptions. Stock basket Stock basket is a group of one or more proposed stock orders considered together for analysis or execution, with each order specifying a stock, side and quantity.

Stock Stock is an ownership interest in a company, divided into shares whose market price and value can change. Share Share is one unit of ownership in a company’s stock, with economic and voting rights that depend on the share class. Ticker symbol Ticker symbol is a short code used to identify a security on a particular exchange or market-data service; it should be checked alongside the company name, exchange and share class. Stock exchange Stock exchange is an organized marketplace that sets rules for listing securities and brings together orders to trade them. New York Stock Exchange (NYSE) New York Stock Exchange (NYSE) is a US stock exchange where listed shares are traded through electronic systems and a trading floor. Nasdaq Nasdaq is a US stock exchange where shares are listed and traded; it is distinct from stock market indexes such as the Nasdaq Composite and Nasdaq-100. Euronext Euronext is a European stock-exchange group operating markets in several countries where shares and other securities are listed and traded. London Stock Exchange (LSE) London Stock Exchange (LSE) is a UK stock exchange where eligible securities are listed and traded, with prices commonly quoted in pounds or pence. Xetra Xetra is an electronic trading venue operated by Deutsche Börse for shares and other securities, where orders can be matched through auctions and continuous trading. Market hours Market hours is the scheduled period when a stock exchange conducts its regular trading session, distinct from any pre-market or after-hours session. Pre-market trading Pre-market trading is the buying and selling of stocks before an exchange’s regular trading session opens, where available through a broker and trading venue. After-hours trading After-hours trading is the buying and selling of stocks outside an exchange’s regular trading session, typically after the closing bell, when available liquidity and order rules can differ. Settlement (T+1) Settlement (T+1) is the completion of a securities trade one business day after its trade date, when securities and payment are transferred between the relevant parties. Broker Broker is a firm or individual that handles a customer's securities orders, connecting the customer to trading venues or other parties that can execute them. Brokerage account Brokerage account is an account held with a broker through which an investor can place securities orders and hold cash and investments. Initial public offering (IPO) Initial public offering (IPO) is the first sale of a company’s shares to the public, typically followed by those shares beginning to trade on a stock exchange. Stock split Stock split is a corporate action that increases the number of shares by a stated ratio while reducing the price per share proportionally, leaving an investor’s ownership percentage unchanged. Reverse stock split Reverse stock split is a corporate action that combines multiple existing shares into fewer shares, raising the price per share proportionally without, by itself, changing an investor’s total holding value. Dividend Dividend is a distribution of a company’s earnings or other available funds to eligible shareholders, usually paid in cash per share but sometimes in additional shares. Ex-dividend date Ex-dividend date is the first trading day on which a stock trades without entitlement to its next declared dividend; buying on or after that date does not qualify for that payment. Dividend yield Dividend yield is a stock’s annual dividend per share divided by its current share price, expressed as a percentage. Share buyback Share buyback is a company’s repurchase of its own shares, which can reduce shares outstanding if the repurchased shares are retired or held as treasury shares. Bull market Bull market is a sustained period of rising prices in a market or asset class, often identified when a broad stock index rises at least 20% from a recent low. Bear market Bear market is a sustained decline in a broad market index, commonly identified when the index falls 20% or more from a recent peak. Market correction Market correction is a decline of at least 10% but less than 20% in a stock market index from a recent peak, typically measured using closing prices. Stock market index Stock market index is a calculated measure of the performance of a defined group of stocks, using rules that determine which stocks qualify and how much each contributes. S&P 500 S&P 500 is a float-adjusted, market-capitalization-weighted index of 500 leading US companies, used as a benchmark for large-cap US stocks. Nasdaq-100 Nasdaq-100 is a stock market index of 100 of the largest non-financial companies listed on the Nasdaq Stock Market, weighted by a modified market-capitalization method. Euro Stoxx 50 Euro Stoxx 50 is a free-float market-capitalization-weighted index of 50 large companies from eurozone countries, commonly used as a benchmark for eurozone blue-chip stocks. CAC 40 CAC 40 is a French stock market index tracking 40 major shares listed on Euronext Paris, weighted by free-float-adjusted market capitalization. DAX DAX is a German stock market index tracking the performance of 40 large companies listed on the Frankfurt Stock Exchange, commonly quoted as a dividend-reinvesting performance index. FTSE 100 FTSE 100 is a free-float-adjusted market-capitalization-weighted index of 100 large companies listed on the London Stock Exchange, used as a benchmark for UK-listed shares. Blue-chip stocks Blue-chip stocks are shares of large, established companies with substantial market value and a long operating history, although the label has no fixed size threshold and does not imply low risk. Growth stocks Growth stocks is a label for shares of companies expected to increase revenue or earnings faster than a relevant market or industry benchmark, often with much of their value tied to future growth. Value stocks Value stocks are shares priced relatively low against measures such as earnings, book value, or cash flow, although a low valuation does not mean the shares are undervalued. Meme stocks Meme stocks is a term for shares that attract intense online attention and coordinated-looking trading interest, often accompanied by unusually volatile prices and trading volumes.

Earnings Earnings is a company's profit over a reporting period, usually measured as net income after expenses, interest and taxes. Earnings per share (EPS) Earnings per share (EPS) is a company's profit available to common shareholders divided by its weighted-average common shares outstanding over a reporting period. Price-to-earnings ratio (P/E) Price-to-earnings ratio (P/E) is a stock’s price per share divided by its earnings per share, showing how much investors pay for each dollar of reported earnings. Forward P/E Forward P/E is a stock’s current price divided by its estimated earnings per share for a specified future period, usually the next 12 months or fiscal year. PEG ratio PEG ratio is a stock’s price-to-earnings ratio divided by its expected annual earnings-per-share growth rate expressed as a percentage, relating its valuation multiple to a growth estimate. Price-to-book ratio (P/B) Price-to-book ratio (P/B) is a stock’s market price divided by its book value per share, showing how much investors pay for each dollar of reported net assets. EV/EBITDA EV/EBITDA is a valuation multiple that divides a company's enterprise value by its earnings before interest, taxes, depreciation, and amortization, showing how its total business value compares with that earnings measure. Free cash flow Free cash flow is cash generated by a company's operations after subtracting capital expenditures, showing what remains for uses such as debt repayment, dividends or reinvestment. Revenue Revenue is the income a company recognizes from providing goods or services during a period, before subtracting operating expenses, interest and taxes. Profit margin Profit margin is the percentage of a company’s revenue left as profit after specified expenses; the expenses included determine whether the measure is gross, operating, or net margin. Earnings guidance Earnings guidance is a company's stated expectation for a future financial period, often expressed as a forecast or range for earnings per share, revenue or another financial measure. Earnings surprise Earnings surprise is the difference between a company’s reported earnings per share and the estimate investors were using before the announcement, often expressed as a percentage of that estimate. Analyst rating Analyst rating is a research analyst’s opinion about a stock’s expected performance, commonly expressed as buy, hold, or sell relative to a stated benchmark and time horizon. Price target Price target is an analyst’s estimate of a stock’s future price over a stated time horizon, based on assumptions about its value and prospects rather than a guaranteed outcome. Consensus estimate Consensus estimate is an aggregate of analysts’ forecasts for a company metric, such as quarterly earnings per share or revenue, for a specified reporting period. Fundamental analysis Fundamental analysis is the evaluation of a company’s financial performance, business and economic conditions to assess its value relative to its stock price. Stock valuation Stock valuation is the process of estimating what a company's shares are worth using its financial results, expected cash flows or comparisons with other companies.

Technical analysis Technical analysis is the study of historical prices, trading volume and chart-derived indicators to describe market trends and patterns, without relying primarily on company financial statements. Momentum Momentum is the tendency of a stock’s recent price direction to persist for a period, often measured by its return over a specified lookback window. Mean reversion Mean reversion is the tendency of a variable, such as a stock’s price or return, to move back toward a specified historical average after deviating from it. Moving average Moving average is the average of a stock’s prices over a rolling number of trading periods, used to smooth short-term fluctuations and describe its past price trend. Relative strength index (RSI) Relative strength index (RSI) is a 0–100 momentum indicator that compares the average size of recent price gains with recent price losses over a chosen number of periods. MACD MACD is a price-based momentum indicator that compares two exponential moving averages and uses a signal line to show changes in the strength and direction of a trend. Bollinger Bands Bollinger Bands is a technical-analysis indicator that plots a moving average with upper and lower bands set a specified number of standard deviations from it. Support and resistance Support and resistance is a technical-analysis concept describing price areas where past buying or selling activity has slowed or reversed a stock’s movement, without guaranteeing that it will happen again. Trend following Trend following is a trading approach that uses rules based on past prices to identify a sustained direction and maintain exposure until a specified signal indicates the trend has changed. Breakout Breakout is a move in a stock’s price beyond a defined support or resistance level, usually assessed using a specified price, time period and confirmation rule. Market sentiment analysis Market sentiment analysis is the assessment of how positive, negative, or uncertain investors’ expressed views are about a stock or market, using sources such as news, commentary, and surveys. News trading News trading is the practice of making trading decisions in response to new information, such as earnings releases or economic data, while accounting for the risk that prices and execution costs can change quickly.

AI stock analysis AI stock analysis is the use of AI models to organize and assess stock-related information or proposed trades, producing estimates and explanations rather than reliable price predictions or investment recommendations. Machine learning in trading Machine learning in trading is the use of models fitted to historical data to estimate trading-related outcomes, such as execution costs or risk, rather than relying solely on fixed rules. Large language model (LLM) in finance Large language model (LLM) in finance is an AI system that interprets or generates financial text to support research and analysis, but its output requires verification against reliable data. GO / NO-GO decision GO / NO-GO decision is a pre-trade verdict indicating whether a proposed stock trade passes an analysis check, fails it, or needs changes under a separate MODIFY verdict. MODIFY verdict MODIFY verdict is PreTrAIde’s pre-trade analysis outcome indicating that a proposed stock basket warrants changes before the user decides whether to place any orders. Quant score Quant score is a numerical rating that summarizes a specified, measurable trading factor, such as liquidity, volatility or execution conditions, on a defined scale. Paper trading Paper trading is the practice of recording simulated trades and tracking their hypothetical outcomes without placing real orders or risking real money. Trading simulator Trading simulator is a tool that tracks hypothetical trades without placing real orders, allowing users to observe simulated outcomes rather than risking money. Backtesting Backtesting is the evaluation of a defined trading strategy against historical data to estimate how it would have behaved, subject to data, execution-cost and overfitting limitations. Trading journal Trading journal is a record of planned and executed trades, including decisions, fills, costs and outcomes, used to review how trading decisions compared with what happened. Decision support tool Decision support tool is software that organizes evidence and estimates to help a person assess a choice while leaving the decision and any action to that person. Robo-advisor Robo-advisor is a digital investment service that uses automated rules or models to recommend and, when authorized, manage a portfolio according to an investor’s goals and risk tolerance. Overfitting Overfitting is when a model learns quirks of its training data rather than patterns that generalize, making its apparent performance unreliable on new data. AI hallucination in finance AI hallucination in finance is an AI-generated financial claim, figure, citation or explanation presented as factual despite lacking support from reliable evidence. Model calibration Model calibration is the degree to which predicted probabilities match the observed frequency of outcomes defined in advance.

Loss aversion Loss aversion is the tendency to feel a loss more strongly than an equal-sized gain, which can distort decisions about trading risk. FOMO (fear of missing out) in trading FOMO (fear of missing out) in trading is the urge to enter a trade because others appear to be profiting or a price is moving, rather than because it fits a considered plan. Confirmation bias Confirmation bias is the tendency to seek, interpret, and remember information that supports an existing belief while discounting evidence against it. Overconfidence bias Overconfidence bias is the tendency to overestimate the accuracy of your judgments or your ability to predict outcomes, potentially leading to trades that take more risk than you recognize. Anchoring bias Anchoring bias is the tendency to rely too heavily on an initial number or reference point when judging new information, even when that reference point is no longer relevant. Disposition effect Disposition effect is the tendency to sell investments that have risen in price while holding investments that have fallen, even when the original purchase price is not relevant to the current decision. Recency bias Recency bias is the tendency to give recent events more weight than older but relevant evidence when judging a stock or making a trading decision. Herd behavior Herd behavior is the tendency to follow other investors’ actions instead of independently evaluating a trade, potentially reinforcing buying or selling pressure. Sunk cost fallacy Sunk cost fallacy is the mistake of letting money, time, or effort already spent determine a trading decision when only future costs, risks, and benefits should matter. Gambler’s fallacy Gambler’s fallacy is the mistaken belief that an independent random outcome becomes more likely because the opposite outcome has occurred repeatedly.

Interest rates and stocks Interest rates and stocks are linked through borrowing costs, the discount rates used to value future cash flows, and economic conditions, but a rate change does not determine a stock’s price. FOMC meeting FOMC meeting is a gathering of the Federal Reserve’s monetary policy committee to assess economic conditions and decide on US monetary policy, including the target range for the federal funds rate. Inflation Inflation is a sustained rise in the overall price level of goods and services, reducing the purchasing power of money over time. Consumer price index (CPI) Consumer price index (CPI) is an index that tracks changes over time in prices paid by consumers for a defined basket of goods and services. Nonfarm payrolls Nonfarm payrolls is a monthly US estimate of paid jobs at nonfarm employers, commonly discussed as the change in employment from the previous month. Earnings season Earnings season is the recurring period when many publicly traded companies report quarterly financial results, often alongside management commentary and guidance. Economic calendar Economic calendar is a schedule of upcoming economic data releases and policy events, showing when information that may affect financial markets is expected. Yield curve Yield curve is a chart of interest rates on comparable debt securities across different maturities at a given time, showing how yields vary with the time until repayment. Recession Recession is a significant, broad-based decline in economic activity that lasts more than a few months and is assessed using measures such as employment, income, production, and sales. Quantitative easing Quantitative easing is a central bank policy of buying financial assets, typically government bonds, to add reserves to the banking system and put downward pressure on longer-term interest rates.