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RakeTrades Traders Terminology

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TERMS DEFINITIONS
/ES S&P 500 Futures Financial contracts speculating on the future value of the S&P 500 index.

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/NQ Nasdaq Futures Financial contracts speculating on the future value of the Nasdaq Composite index.

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SPY S&P 500 ETF An exchangetraded fund that tracks the S&P 500 index.
QQQ Nasdaq ETF An exchangetraded fund that tracks the Nasdaq100 index.
ATM At The Money An options contract with a strike price close to the current market price of the underlying asset.

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B/E Break Even The point at which gains equal losses. There are no profits or losses.
BPTS Basis Points A unit of measurement for interest rates and other percentages in finance, equal to 1/100th of 1%.

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BTD Buy The Dip A strategy that involves purchasing an asset after it has declined in price.
CPI Consumer Price Index A measure that examines the weighted average of prices of a basket of consumer goods and services.
DCB Dead Cat Bounce A temporary recovery from a prolonged decline or a bear market, followed by the continuation of the downtrend.
DTE Days To Expiration The number of days until an option contract expires and it is no longer able to be traded.

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EMA Exponential Moving Average A type of moving average that places a greater weight and significance on the most recent data points.
EOW End Of Week Refers to the closing of the market at the end of the trading week.

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ER Earnings Report A document that a public company releases to inform the public of its earnings performance during a specific period.
FA Fundamental Analysis A method of measuring a security's intrinsic value by examining related economic and financial factors.

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FTGH Failure To Go Higher A situation where a stock or market fails to exceed a previous high, potentially indicating a reversal or consolidation.
GDP Gross Domestic Product The total market value of all final goods and services produced within a country in a specific period.
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Good Till Canceled
Higher High
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An order to buy or sell a security that lasts until the order is completed or canceled.
A peak that is higher than the previous peak in a chart pattern.
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HOD High Of Day The highest price of a stock or other security during a trading day.
IBRK Interactive Brokers A U.S.based brokerage firm.
ITM In The Money An options contract with a strike price that is favorable to the market price of the underlying asset. Asset @ 150, Calls from 1-149 are ITM.
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LH Lower High A peak that is lower than the previous peak in a chart pattern.
LL Lower Low A trough that is lower than the previous trough in a chart pattern.
LOD Low Of Day The lowest price of a stock or other security during a trading day.
MA Moving Average A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random price fluctuations.
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MTFA Multi Time Frame Analysis A method of analyzing a financial chart on several different time frames before entering a trade.
OP Opening Print The price at which a security first trades upon the opening of an exchange on a given trading day.
OTM Out of The Money An options contract that would not result in a profit if exercised at that moment. Asset @ 150, Calls @ 160 are OTM. Usually cheaper.
PB Pull Back A temporary reversal in the price of a stock or market index.
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PHL Potential Higher Low A point on the chart that might become a new higher low compared to the previous lows, indicating an uptrend.
PMH Pre Market Highs The highest price reached by a security during the premarket trading session.
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PT Price Target The projected price level of a financial security stated by an analyst or advisor.
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RakeTrades Traders Terminology

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TERMS DEFINITIONS
R2G Red to Green A situation where a stock moves from negative to positive territory during the trading day.

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SL Stop Loss An order placed with a broker to buy or sell once the stock reaches a certain price, used to limit a trader’s loss on a security position.

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SOH Sit On Hands A strategy used by traders to not make any trades and instead observe the market.
STC Sell To Close An order used to exit a position for an options contract.
TA Technical Analysis A trading method to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from charts.

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TL Trend Line A straight line that connects two or more price points and then extends into the future to act as a line of support or resistance.
TP Take Profit An order to sell a security when it reaches a certain price, locking in profits.

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W/L Ratio Win Loss Ratio A ratio used to compare the number of trades won to the number of trades lost.
YOLO High Risk High Reward Trade A trade that carries a high level of risk but also the potential for significant rewards. Usually sized for zero.
/RTY Russell 2000 Futures Financial contracts speculating on the future value of the Russell 2000 index.
/YM Dow Jones Futures Financial contracts speculating on the future value of the Dow Jones Industrial Average.

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IWM Russell 2000 ETF An exchangetraded fund that tracks the Russell 2000 index.
DIA Dow Jones ETF An exchangetraded fund that tracks the Dow Jones Industrial Average.

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ATR Average True Range A technical analysis indicator that measures market volatility by decomposing the entire range of an asset price for that period.
BP Buying Power The amount of money available to buy securities in a trading account.

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BTC Buy To Close An order used by options traders to exit an open position (if shorting -100 shares of apple, buy back 100 shares to close the trade)
BTO Buy To Open An order used by options traders to enter a new position.

DCA Dollar Cost Averaging e


An investment strategy in which a person divides up the total amount to be invested across periodic purchases of a target asset to reduce the impact of
volatility on the overall purchase.
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DT Day Trade The act of buying and selling a financial instrument within the same day, or even multiple times over the course of a day.
EM Expected Move An estimate of a security's potential future price movement based on market volatility or option prices.
EOD End Of Day Refers to the close of the trading day in financial markets.
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EPS Earnings Per Share A portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.
EV Extrinsic Value The portion of the price of an option that is not intrinsic value (the value of an option beyond its intrinsic value).
FOMC Federal Open Market Committee The branch of the Federal Reserve Board that determines the direction of monetary policy. (HIGH VOLATILITY DAYS)
FTGL Failure To Go Lower A situation where a stock or market fails to drop below a previous low, potentially indicating a reversal or consolidation.
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GFV Good Faith Violation A violation that occurs when a security pbought in a cash account is sold before the purchase is paid for with settled funds.
HBS Horny Bear/Bull Syndrome A term used to describe when traders become too biased in one direction or another based off a big move or hype generated from others.
HL Higher Low A trough that is higher than the previous trough in a chart pattern, indicating an uptrend.
HTF Higher Time Frame Referring to longer time frame charts used by traders to gauge overall trends.
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IPO Initial Public Offering The first time that the stock of a private company is offered to the public.
IV Implied Volatility The market's forecast of a likely movement in a security's price, often used in options trading.
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LIS Line In Sand A predetermined point set by a trader at which they will make a specific trading decision.
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RakeTrades Traders Terminology

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TERMS DEFINITIONS
LOAD Options are in que & on watch Indicates options that are being monitored closely for potential trading.

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LTF Lower Time Frame Referring to shorter time frame charts used by traders for entries and exits, typically displaying more detail and less overall trend.

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MM Market Maker A firm that provides liquidity to financial markets by buying and selling securities, offering twosided markets (buy and sell prices).
NLV Net Liquidating Value The total value of all the securities in a brokerage account, calculated by combining the cash balance with the current market values of all positions.
OPP Opening Price Pullback A trading strategy that looks for opportunities when a security's price pulls back from its opening price level.

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PA Price Action The movement of a security's price plotted over time.
PDT Pattern Day Trader A regulatory designation for traders or investors who execute four or more day trades within five business days using a margin account.

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PLH Potential Lower High A point on the chart that might become a new lower high compared to the previous highs, indicating a downtrend.
PML Pre Market Lows The lowest price reached by a security during the premarket trading session.
R:R Risk to reward The ratio used to compare the expected returns of an investment to the amount of risk undertaken to capture these returns.
RH Robin Hood A reference to a popular brokerage platform known for offering commissionfree trading, named Robinhood.

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SMA Simple Moving Average A technical analysis indicator that calculates the average of a selected range of prices, usually closing prices, by the number of periods in that range.
SR Support Resistance Price levels on a chart where the price tends to stop moving and change direction.

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STO Sell To Open An order used by options traders to write or sell a new option contract.
TF Time Frame The length of time over which a trade is made or an investment is held.

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TOS Think Or Swim A trading platform offered by TD Ameritrade that provides trading tools and resources.
TW Tasty Works A brokerage firm that specializes in options trading.
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3BP
Watch List
3 Bar Play
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A list of securities being monitored for potential trading or investing opportunities.
A pattern that involves three bars, typically used in technical analysis to predict the movement of stock prices.
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