Adjusted Entry Price
The purchase price per share adjusted by all corporate actions such as dividends, splits, and spin-offs.
A description of the alert type and parameters that have been added to the position.
A measure of the difference between a portfolio’s actual returns and its expected performance, given its level of risk as measured by beta. A positive Alpha figure indicates the portfolio has...
The number of units of a cryptocurrency sent in a transaction. This can also be known as “units.”
Amplitude is the difference in a security’s price from its wave cycle trough (bottom) to the crest (top) of its price movement over a period of time.
The percentage gain that the position would achieve in one year if it continues its current trend.
ASIC is a way to mine cryptocurrencies faster. A faster hashrate means a better chance for a miner’s transaction to be approved and for them to win the reward. ASIC, Application Specific Integrated...
The number of round lots (100 shares per lot) offered at the ask price. For example, an ask size of 20 represents 2,000 shares (20 round lots at 100 shares per lot).
The Asset Allocation tool provides an overview of how your portfolios are diversified over different industries and sectors in the market.
Current assets plus net property, plant, and equipment, plus other non-current assets, including intangible assets, deferred items, and investments and advances. “Assets” is the sum of:...
The amount of money at risk for the position. Calculated as: At Risk = (Latest Close – Stop Price) * Shares.
Barclays Capital U.S. Aggregate Bond Index (LB Agg)
An unmanaged, market value-weighted index representing securities that are SEC-registered, taxable, and dollar denominated. This index covers the U.S. investment grade fixed rate bond market, with...
Barclays Capital U.S. U.S. Treasury Inflation-Protected Securities (TIPS) Index
An unmanaged index that represents securities that protect against adverse inflation and provide a minimum level of real return. To be included in this index, bonds must have cash flows linked to an...
A period of time when the stock market is trending down, and the majority of stocks are going down in price. One criterion for a major bear market is when the three major stock indexes (the Dow Jones...
An unmanaged group of securities whose overall performance is used as a standard against which relative investment performance is measured.
A quantitative measure of the volatility of a stock relative to the Standard & Poor’s 500 (S&P 500), generally considered representative of the overall securities market. Specifically,...
A Bitcoin address is a unique identifier that serves as a virtual location where the cryptocurrency can be sent. This is not the same as a Public Key.
An alternative version of Bitcoin that uses new features, rules, and a different developmental roadmap. Increases the size of blocks, allowing more transactions to be processed.
The number of transactions that can be processed on the distributed ledger per day. For example, this amounts to 1Mega Byte, or 250,000 transactions, for Bitcoin.
The amount of Bitcoin (or other cryptocurrency) that a miner receives for processing a transaction. The reward is a total of block subsidy and transaction fees.
The general ledger for cryptocurrency transactions. The open-source document allows anyone to read it. Miners will confirm transactions in the blockchain. Once the nodes agree that the block is...
Blue Chip Stocks
These are often large-cap stocks in companies known for their long-established record of making money and paying dividends.
An interest-bearing promise to pay a specified sum of money (the principal amount) due on a specific date.
The security is at its lowest point in time-cycle analysis and could potentially begin to head higher. This pertains to our Timing by TradeSmith product.
Within Timing by TradeSmith, this helps subscribers visualize upcoming tops and bottoms for specific investments, funds, commodities, and markets.
Call options are financial contracts that give the option buyer the right, but not the obligation, to buy a stock, bond, commodity or other asset or instrument at a specified price within a...
Refers to a bond or other security that may be redeemed by the issuer before the scheduled maturity. When searching for fixed-income securities (e.g., bonds), this is the first date on which the...
CBOE Market Volatility Index (VIX)
The CBOE Market Volatility Index (VIX) is a measure of implied volatility based on the prices of a basket of S&P 500 Index options with 30 days to expiration. Interpretation: When the VIX rises,...
CBOE NASDAQ Market Volatility (VXN)
The CBOE NASDAQ Market Volatility is a measure of implied volatility based on the prices of a basket of NASDAQ 100 Index options with 30 days to expiration. Interpretation: When the VXN rises, it...
Storing cryptoassets offline — usually on a USB drive, CD, or computer that is not connected to the internet. Hardware wallets are examples of cold storage. This can potentially be safer than...
Fees charged by a broker to buy and sell positions. Commissions vary widely from brokerage to brokerage.
A commodity is a basic good used in commerce that is interchangeable with other goods of the same type. Some examples include wheat, beans, corn, cotton, gold, silver, and copper.
Refers to the amount of the company’s book value (or Shareholders’ Equity) comprised of common stock.
Securities that represent units of ownership in a public corporation. Common stock owners usually have voting rights when it comes to selecting directors and in other matters, and they may benefit...
Common Stock (REIT)
A security that sells like a stock on the major exchanges and invests in real estate directly, either through properties or mortgages. A REIT is required to invest at least 75% of total assets in...
Indicates whether a preferred security contains a provision permitting the holder to convert the preferred security into another security or cash. What the preferred securities may be converted to...
A conviction level in Timing by TradeSmith shows just how much of our analysis is in agreement toward an asset making a certain move in the market, like a top or a bottom.
Cost Basis (C/B)
The Cost Basis (C/B) is the original value (purchase price) of an asset for tax purposes, adjusted for stock splits, dividends, and return of capital distributions. This number is used to help...
The Crypto Analyzer lets you research a cryptocurrency before you purchase it with our proprietary indicators and stop loss strategies.
A medium of exchange for goods and services. TradeSmith tracks these currencies: USD, CAD, GBP, EUR, and AUD.
An identification number assigned to an investment product, like a stock or a registered bond, by the Committee on Uniform Security Identification Procedures.
Daily Gain Percentage
The percentage gained or lost from the latest two close dates. Calculated as: Daily Gain / Total Value.
Daily Gain Total
The dollar amount gained or lost from the latest two close dates multiplied by the number of shares.
A form of organization which does not require any single party, group, or authority to control services. Cryptocurrencies are decentralized as they do not rely on one central entity.
In a decentralized exchange, all trading is peer-to-peer, and there is no third party matching the orders or holding the funds. Trades are direct, via the blockchain, from one crypto-asset holder to...
Delta is the ratio that compares the change in the price of an asset, usually marketable securities, to the corresponding change in the price of its derivative. For example, if a stock option has a...
Total non-cash charges to income for the gradual, systematic reduction of the actual cost or other basic value of tangible and intangible assets over their estimated useful lives (e.g., factors such...
A digital asset is anything that is formatted into a binary source and includes the right to use it. A cryptocurrency is an example of a digital asset.
A distributed ledger acts just like a ledger at a bank, but it does not have one central authority with control over it. The distributed ledger is spread across multiple networks and CPUs. These...
The date, established by the stock exchanges, on or after which a security is no longer traded with rights to a previously announced dividend. The ex-dividend date for stocks is typically two...
Regular Dividend is a dividend rate established by a Company that is typically paid on a recurring frequency, such as quarterly, semiannually, annually and monthly. Extra Dividend is a dividend...
The dividend yield is the ratio of a company’s annual dividend compared to its share price. It is calculated as follows: Annual Dividend / Share Price. In TradeSmith, it is calculated as...
A distribution of reward from a portion of the company’s earnings that is paid to a class of its shareholders.
The Dow Jones industrial average measures the stock performance of 30 large, publicly traded companies.
A securities market of smaller size, or short operating history (e.g., Greece, Russia, China, and Brazil).
In cryptography, encryption is the process of encoding a message or information in such a way that only authorized parties can access it, and those who are not authorized cannot.
A measure of a company’s total value, often used as a more comprehensive alternative to equity market capitalization.
Earnings per share is a company’s profits divided by outstanding shares of a company’s stock. It is calculated as follows: (Net Income – Dividends on Preferred Stock) / Average...
The EV/EBITDA multiple is a financial valuation ratio that measures a company’s return on investment (ROI). A comparison of enterprise value and earnings before interest, taxes, depreciation,...
The date that the stock price is adjusted to reflect the issuance of new shares due to the stock split.
The exchange on which a security is traded. Generally, the exchange a stock trades on does not matter, with one exception: stocks that do not meet the listing criteria of the major exchanges (the...
Exchange Traded Fund (ETF)
An ETF represents an interest in a portfolio of securities that often seeks to track an underlying benchmark or index (for example, S&P 500 or Dow Jones Industrial Average), or other asset...
Within cryptocurrency, the money paid to process a transaction. Typically, miners are awarded the fee as incentive to speed up transaction times.
First Optional Call Date
The first date on which an issue may be redeemed at the issuer’s option. For preferred securities, it is returned for optional calls exclusively into cash.
First Optional Call Price
The first price at which an issue may be redeemed at the issuer’s option. For preferred securities, it is returned for optional calls exclusively into cash.
The flippening is the term used to describe a possible turn in the crypto world where an alt coin replaces bitcoin as the biggest cryptocurrency.
Within cryptocurrency, a fork refers to an upgrade to a blockchain network. Forks can be implemented for any number of reasons — disagreements among miners and developers, security, and...
The latest closing price of the stock divided by the latest Earnings Per Share (EPS) estimate as provided by Zacks Investment Research. In the first three quarters of a company’s fiscal year,...
The Footsie is an index that tracks the 100 largest public companies by market capitalization that trade on the London Stock Exchange (LSE).
Gain Per Share Excluding Dividends (Gain/Shr ex Div)
The latest closing price minus the adjusted purchase price and does not include dividends. Gain/Shr ex Div = Gain ex Div / Shares.
Gain Per Share With Dividends (Gain/Shr w/Div)
The latest closing price minus the adjusted purchase price with dividends. Gain/Shr w/ Div = (Gain w/ Div) / Shares.
Gain Percentage With Dividends (Gain % w/Div)
The percentage gain for the position since its purchase that includes dividends. It is calculated as follows: Gain % w/ Div = (Total Gain / Total C/B) + Dividends.
Gain Percentage Without Dividends (Gain % ex Div)
The percentage gain for the position since its purchase that does not include dividends. It is calculated as follows: Gain % ex Div = Total Gain / Total C/B.
Gain With Dividends (Gain w/Div)
The dollar gain of a position that includes any dividends. It is calculated as follows: Gain w/ Div = Value – Total C/B + Dividends.
Gain Without Dividends (Gain ex Div)
The dollar gain of a position that does not include any dividends. It is calculated as follows: Gain ex Div = Value – Total C/B.
Gamma is the rate of change in an option’s delta per 1-point move in the underlying asset’s price. Gamma is an important measure of the convexity of a derivative’s value, in...
Gross Expense Ratio for Exchange Traded Products (ETPs)
Morningstar provides the annual percentage of an ETP’s assets paid out in expenses. Expenses can include management, transfer agent and all other fees associated with the ETP’s daily...
When a miner’s proof of work is approved, he or she receives a block reward. Halving is the reduction of the reward after 210,000 blocks are mined.
Typically natural resources that must be mined or extracted—such as gold, rubber, and oil.
Hashing is a method of cryptography that converts any form of data into a unique string of text. Cryptocurrencies use hashing to verify transactions.
The hashrate tells you how quickly a block is discovered, and the related cryptography function is solved. Tools like ASIC can shorten the hashrate.
This indicator represents the life cycle of positions. It provides simple green, yellow, and red light indicators to help understand the health of a position based on how it’s moving in relation to...
Health Indicator Early Entry Signal
The Early Entry Signal was developed as a more aggressive manner to time entering a position ahead of the traditional Entry Signal. In order for an Early Entry Signal to trigger, price would need to...
Health Indicator Entry Signal
The Entry Signal was designed to answer the question of when it’s safe to get back into a position that was previously stopped out by its Stop Loss. It has two basic components. It tells you when...
Health Indicator Green Zone
The Green Zone indicates when a position is in a healthy state. Positions can move from the Yellow Zone to the Green Zone and from the Red Zone to the Green Zone. Moving from the Red Zone to the...
Health Indicator Red Zone
This zone indicates that the position has corrected more than its VQ% below a recent high. The position is not behaving in a way that is usual based on its historical market trend. When using the...
Health Indicator Yellow Zone
The Yellow Zone indicates that the position has corrected about halfway from its listed VQ from its most recent high but has not yet been stopped out. This indicates caution when using the Health...
Each position has its own Health Trend. The math behind the Trend is complex but the concept is simple – find the moving average that was: (1) The best support for longer term trends and (2) that...
High Yield Funds
High yield funds may invest in lower quality debt securities, which generally offer higher yields, but also carry more risk.
Historical Volatility (HV)
Historical volatility (HV) is a statistical measure of the dispersion of returns for a given security or market index over a given period of time. Generally, this measure is calculated by...
Implied Volatility (IV)
Implied volatility is a metric that captures the market’s view of the likelihood of changes in a given security’s price. Investors can use it to project future moves and supply and...
In the Money (ITM)
“In the money” (ITM) is an expression that refers to an option that possesses intrinsic value. ITM thus indicates that an option has value in a strike price that is favorable in...
A portfolio of securities that are selected based on the objective and rules as stated by the index methodology. Each index has its own proprietary calculation methodology and composition as defined...
A passively managed fund designed to replicate the performance of an unmanaged stock or bond index.
The term industry refers to a series of companies that operate in a similar business sphere. Examples of industries: The financial sector can be broken down into several different industries such as...
An average of all stock data values in the same industry. Industry Average is used to compare a stock’s Valuation, Growth, and Profitability ratios to that of other stocks in the same industry.
Initial Coin Offering
An initial coin offering (ICO) is a means for start-ups to raise capital and bypass the rigorous regulations of venture capitalists or banks. During the ICO, a percentage of the new cryptocurrency is...
Initial Public Offering
An initial public offering (IPO) refers to the process of offering shares of a corporation to the public in new stock issuance.
The record on the blockchain of the cryptocurrency someone owns and wants to send to someone else.
Inverted Yield Curve
An inverted yield curve is one in which short-term rates are above long-term rates. A “normal” yield curve is one in which long-term rates are above short-term rates. An inverted yield curve is...
The last closing price for which the position trades during the trading session. In TradeSmith, this is adjusted for corporate actions such as dividends, splits, and spin-offs.
In TradeSmith, the latest price is updated every 15 minutes for equities; every 30 minutes for cryptocurrencies.
A type of Exchange Traded Product (ETP) that seeks to amplify the potential returns and/or potential losses of a benchmark index. Leveraged ETPs seek results over a pre-set time period indicated in...
This criterion tells you whether an ETP is leveraged or inverse. Leveraged (ETF) A type of Exchange Traded Product (ETP) that seeks to amplify the potential returns and/or potential losses of a...
LikeFolio analyzes social media data, specifically Twitter, to accurately predict shifts in consumer spending behavior before it becomes news on Wall Street or in the corporate boardroom. Please note...
An order price type placed on the execution of an order. Limit restricts the price you pay to buy or sell a security to be a limit price you specify or better. The limit price is specified in a...
The Linear Regression Line indicator in the Advanced Chart gathers the prices for the number of specified periods and finds a straight line which best fits all the prices using a linear regression...
Long or Short (L/S)
This is the position type, not the position duration. A long position is a one that you buy and profit from as the price rises. A short position is a one that you sell and profit from as prices drop....
Money paid by an investment product to its investment manager or advisor for overseeing the investment product’s portfolio.
Mandatory Call Price
The price, corresponding to the Mandatory Call Date, at which a security will be redeemed.
A financial market is a mechanism that brings together buyers and sellers to enable the voluntary exchange of assets, rights, obligations, and other items of value. It includes a process for delivery...
The aggregate market value of a company represented in dollar amount. Since it represents the “market” value of a company, it is computed based on the current market price (CMP) of its shares and...
A section within Ideas by TradeSmith. Situational awareness in the markets is critical to successful investing. Market Health provides you with a comprehensive look across major markets, sectors, and...
Market refers to the collection of markets and exchanges where regular activities of buying, selling, and issuance of shares of publicly held companies take place.
Maximum drawdown is the largest percentage loss in value for a research provider’s theoretical portfolio. It is calculated as the peak to trough percentage decline in portfolio value occurred...
Maximum Gain %
The maximum percentage gain a position has achieved since entry based on the latest closing price or exit price.
A user (or users) in the blockchain that confirms a block of transactions. Miners are awarded cryptocurrency for processing transactions.
Minimum Gain %
The minimum percentage gain that the position has achieved since entry based on closing price or exit price.
A computer system used for mining Bitcoins. The computers are used to record information on the blockchain, and miners do this work in return for money.
Momentum is the difference between current price and the price a specified number of bars ago, Period. The momentum indicator shows the speed at which price changes from one period to another. It...
Momentum & VQ Pairing
This strategy searches for coins in the CSI Green Zone for both BTC and USD with a VQ of less than or equal to 60% and trending up or sideways. In addition, it also compares the VQ for both...
The Momentum filter uses underlying price comparisons to find cryptos with extra potential to grow. It searches for three specific criteria. Resulting coins must be trending up in both Bitcoin and...
The relative position of the current price (or future price) of an underlying asset (e.g., a stock) with respect to the strike price of a derivative, most commonly a call option or a put option.
Moody’s Credit Rating
The latest rating assigned by Moody’s to indicate its opinion of the relative credit risk of the preferred security. It is based on S&P’s proprietary analysis of the security at the...
A technical analysis technique used to smooth out price action by filtering out noise from random short-term price fluctuations. This helps to identify trend direction. The two most common types of...
MSCI ESG Research products and services are provided by MSCI ESG Research Inc., and are designed to provide in-depth research, ratings and analysis of environmental, social and governance-related...
Multiple Purchase Lots
Entering the same position on various dates with different entry prices. TradeSmith does not support multiple purchase lots.
Multisig, or multi-signature, requires more than one signature to approve a transaction. While not required for all transactions, it is a good form of security to utilize. If a company is making...
The Nasdaq exchange includes the world’s foremost technology and biotech giants such as Apple, Google, Microsoft, Amazon, and Intel. The term Nasdaq is also used to refer to the Nasdaq...
An index basket of the 100 largest, most actively traded U.S. companies listed on the NASDAQ stock exchange. Numerous industries are included like retail, biotechnology, industrial, technology,...
Net Expense Ratio for Exchange Traded Products (ETPs)
The Net Expense Ratio is the annual percentage of an Exchange Traded Product’s assets paid out in expenses, less the amounts reimbursed by the ETP sponsor. Expenses can include management, transfer...
The total earnings of the company. It is calculated as sales minus cost of goods sold, selling, general and administrative expenses, operating expenses, depreciation, interest, taxes, and other...
A company’s profitability after all costs, expenses, and taxes have been paid. Net Margin is calculated by dividing Net Earnings by Revenues and then multiplying by 100. The result is...
Next Optional Call Date
The date on which a given amount of the bond issue may be redeemed by the issuer at the Next Optional Call Price. “–” is returned if no future calls exist.
Next Optional Call Price
The next price at which a security is callable. The price cannot be determined when it decrements more frequently than monthly or because the ending price decrement was not stated in the prospectus
The Nikkei is short for Japan’s Nikkei 225 Stock Average, the leading and most-respected index of Japanese stocks. It is a price-weighted index comprised of Japan’s top 225 blue-chip...
Any computer that connects to the Bitcoin interface may be considered as a node in the sense that they communicate somehow with each other. The network of computer nodes is what makes it possible for...
A customizable field on the Position Card Page and Positions & Alerts page. Notes can be used to help users remember specific information about securities.
A company’s profitability before non-cash charges for a specified period. The operating margin is calculated by dividing EBITDA (earnings before interest expense, taxes, depreciation, and...
Optional Call Price
The current or first price at which a security is callable. The price cannot be determined when it decreases more frequently than monthly or if the ending price is not stated in the prospectus.
A right to buy or sell shares at a specified price for a specific period of time. With a call option, the buyer has the right to buy shares of the underlying security at a specific price for a...
Out of the Money (OTM)
“Out of the money” (OTM) is an expression used to describe an option contract that only contains extrinsic value. These options will have a delta of less than 50.0. An OTM call option...
Price-To-Book. This is a ratio that compares a company’s market capitalization to its book value. It is calculated as follows: Current Closing Price / Latest Quarter’s Book Value Per Share.
Price-to-Earnings. This is the ratio for valuing a company that measures its current share price relative to its per-share earnings. It is calculated as follows: Market Value per Share / Earnings per...
A group of devices that collectively store and share files. Each participant (node) acts as an individual peer. Typically, all nodes have equal power and perform the same tasks.
Price/Earnings to Growth. The PEG ratio is used to determine a stock’s value while also factoring in the company’s expected earnings growth. It is calculated as follows: P/E Ratio /...
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies, and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded, and closed...
On the Portfolios page in TradeStops, this shows you the composition one portfolio makes up in Investment or Watch portfolios.
The makeup of a fund’s portfolio expressed in terms of asset allocation and industry and sector diversification.
Portfolio Volatility Quotient Analyzer
The Portfolio Volatility Quotient (PVQ) Analyzer can show you how heavily invested you are in low-, medium-, high- and sky high-risk investments based on their Volatility Quotient % for your overall...
Position Size Calculator
This tool tells you exactly how much risk you’re taking in each position and the exact number of shares you could purchase depending on the risk or investment amount you’ve determined is right...
A type of security sharing the properties of stocks and bonds—a hybrid of a bond and a share of common stock. The holder of a share of preferred stock is normally paid a fixed dividend which...
1 Day — Previous trading day premium or discount of the market price divided by the NAV (Net Asset Value), expressed as a percentage. 1 Month Rolling Average — The average premium or discount of...
A private key, also known as a secret key, is a variable in cryptography that is used with an algorithm to encrypt and decrypt code. It will be paired with a Public Key for transactions. Never share...
Proof of Stake
An algorithm in which a person is chosen to mine or validate block transactions in a pseudo-random way based on the user’s wealth. This requires less computational work than a standard...
Proof of Work (PoW)
In blockchain, this algorithm is used to confirm transactions and produce new blocks to the chain. With PoW, miners compete against each other to complete transactions on the network and get rewarded.
A Bitcoin address is a unique identifier that serves as a virtual location where a cryptocurrency can be sent.
The record of the cryptocurrency that someone owns and wants to send to others. Nodes and Miners will see the Public Key. It will be random sequences of letters and numbers that function similarly to...
Pure Quant Portfolio Builder
The Pure Quant Portfolio Builder puts our most powerful, proprietary quantitative algorithms to work to help you. After you select a data source to screen, our algorithms will build your optimized,...
QR code (abbreviated from Quick Response code) is the trademark for a type of matrix barcode (or two-dimensional barcode) first designed in 1994 for the automotive industry in Japan. In...
Relative Strength Index (RSI)
The RSI function returns the Relative Strength Index indicator. RSI is one of the classic momentum indicators and was developed by Wells Wilder. RSI measures a market’s internal strength by...
Remaining Risk is calculated in TradeSmith as taking the latest close from the Health Indicator stop loss.
Return on Investment (ROI)
Return on investment (ROI) is a performance measure used to evaluate the efficiency or profitability of an investment or compare the efficiency of a number of different investments. ROI tries to...
The income generated from normal business operations and includes discounts and deductions for returned merchandise. It is the top line or gross income figure from which costs are subtracted to...
Rho is the rate at which the price of a derivative changes relative to a change in the risk-free rate of interest. Rho measures the sensitivity of an option or options portfolio to a change...
The Risk Rebalancer uses our proprietary volatility metric, the Volatility Quotient (VQ/Risk), to allocate more capital to less-volatile equities and less capital to your more-volatile equities.
The Russell 1000 index, a subset of the Russell 3000 index, represents the top 1,000 companies in the United States.
A Standard & Poor’s mid-cap index, this represents those stocks with market caps of at least $1.4 billion to $5.9 billion.
Also known as the Standard & Poor’s 500 index, contains 505 stocks issued by 500 large companies with market caps of at least $8.2 billion.
A Standard & Poor’s small-cap index, this represents stocks with market caps of $300 million to $1.4 billion. It tracks a broad range of small companies that must reach certain liquidity and...
The name used by the presumed pseudonymous person or persons who developed Bitcoin, authored the Bitcoin white paper, and created and deployed Bitcoin’s original reference implementation.
This is a tool within Ideas by TradeSmith that helps subscribers find investments based on user-defined criteria.
Scrypt is a password-based key derivation function. This special function, algorithm, makes it hard to perform hardware attacks. A simplified version of it is used by the Litecoin network to confirm...
Search for Ticker
This tool lets you explore TradeSmith’s proprietary indicators and stop-loss strategies on individual stocks, mutual funds, exchange traded funds, indexes, and cryptocurrencies.
Sector refers to a part of the economy in which a great number of companies can be categorized. An economy can be broken down into about a dozen sectors, which can describe nearly all of the business...
Sector & Industry Descriptions
Consumer Discretionary The Consumer Discretionary Sector encompasses those industries that tend to be the most sensitive to economic cycles. Its manufacturing segment includes automotive, household...
SHA-2 (Secure Hash Algorithm 2) is a cryptographic hash function used to run operations on digital data. The computer hash (output) is compared to a known and expected hash value to prove the...
The common and preferred shareholders’ interest in the company. Shareholders’ Equity represents the sum of Total Common/Ordinary Equity and Preferred/Preference Stock. Data is represented...
Shares are units of ownership interest in a corporation or financial asset that provide for an equal distribution in any profits, if any are declared, in the form of dividends. The two main types of...
Shares outstanding refers to a company’s stock currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s...
Simple Moving Average (SMA)
An arithmetic moving average calculated by adding recent prices, usually close prices, and then dividing that by the number of time periods in the calculation average.
The 10-day simple moving average. Calculated by adding the closing price of the last 10 trading days and dividing by 10.
The 200-day simple moving average. Calculated by adding the closing price of the last 200 trading days and dividing by 200.
The 50-day simple moving average. Calculated by adding the closing price of the last 50 trading days and dividing by 50.
A smart contract is an agreement that is stored on the blockchain. For the contract to be executed, certain criteria need to be met — just like a physical contract. Once the smart contract is...
Futures contracts where the actuals are grown, rather than mined or extracted. A soft commodity could be coffee, cocoa, sugar, or fruit, for example.
Spider (SPDR) is a short-form name for a Standard & Poor’s depository receipt, an exchange-traded fund (ETF) managed by State Street Global Advisors that tracks the Standard &...
A stablecoin seeks to reduce the volatility in the crypto market by acting as a store of value for the crypto asset. An example of a stablecoin is Tether.
Standard & Poor’s Credit Rating
The latest rating assigned by Standard & Poors to indicate its opinion of the relative credit risk of the preferred security. It is based on S&P’s proprietary analysis of the security...
Standard Deviation is the statistical measure of market volatility. If prices trade in a tight narrow trading range then the standard deviation will return a low value indicating volatility is low....
The Stock Analyzer lets you explore TradeStops’ proprietary indicators and stop-loss strategies on individual stocks, mutual funds, exchange traded funds, and indexes.
Stocks are an investment in a company and that company’s profits. Investors buy stock to earn a return on their investment.
A strike price is the set price at which a derivative contract can be bought or sold when it is exercised. For call options, the strike price is where the security can be bought by the option...
A stock symbol is a unique series of letters assigned to a security for trading purposes. Also known as ticker symbol.
Tags are a user-defined field within TradeStops. Tags can be keywords to help users remember important facts about their holdings, for organizational purposes, or for searching for a position.
The term theta refers to the rate of decline in the value of an option due to the passage of time. It can also be referred to as the time decay of an option. This means an option loses value as...
Time decay is a measure of the rate of decline in the value of an options contract due to the passage of time. Time decay accelerates as an option’s time to expiration draws closer since...
In time-cycle analysis, we are less focused on the exact price the amplitude may predict. Instead, our focus is knowing that a top or a bottom may be coming. This pertains to our Timing by TradeSmith...
The security is at its highest point in time-cycle analysis and could potentially begin to head lower. This pertains to our Timing by TradeSmith product.
The assets owned by the entity that have economic value with the expectation that they will provide a future benefit.. This can include cash, investments, furniture, fixtures, equipment, receivables,...
Total Cost Basis (C/B)
The original amount of money, adjusted for corporate actions, put into an investment before any growth or loss. This includes the initial investment as well as fees and commissions. It is calculated...
The total of all dividends received by an investor for tax purposes. In TradeStops, total dividends will be tracked based on a user’s listed Entry Date.
The total number of coins or tokens that are in existence (minus any coins that have been verifiably burned, aka made unspendable), including those circulating in the public market and those that are...
A trading pair tells you which currencies are being traded against each other. The first currency of the pair is the one that you are trying to buy or sell. Your trades would then be denominated...
The total volume for the previous three months divided by the number of trading days in the previous three months.
Trailing P/E Ratio
The ratio of a stock’s latest closing price divided by earnings per share based on the last reported 12 months of earnings. Companies with negative earnings receive an “NE.”
A trailing stop is a stop order that can be set at a defined percentage or dollar amount away from a security’s current market price. For long positions, the stop would be below current market...
The Input, Amount, and Output for a cryptocurrency that will be processed on the blockchain. Once a transaction is processed, it cannot be reversed.
A strategy inside the Ideas Lab within Ideas by TradeSmith. Value investors can now combine value stocks with positive momentum to narrow down their choices. Our Value tool shows you stocks that are...
Vega is the measurement of an option’s price sensitivity to changes in the volatility of the underlying asset. Vega represents the amount that an option contract’s price changes in...
Volatility Quotient (VQ%)
The Volatility Quotient (VQ/Risk) indicates how volatile an investment is based on at least one year’s historic price action. This ensures the user takes the right amount of risk in any trade...
The total number of shares traded on all exchanges where the security is traded during the latest trading day. Unusually high volume days typically correspond with the announcement of company news,...
The number of shares of a security traded during a given period of time. Every transaction that takes place between a buyer and a seller of a security contributes to the total volume count of that...