Glossary

The act of determining the current worth of an asset or company.

Measurement of the financial risk associated with one or more investments over a specific time frame. It estimates the amount of assets needed for collateral to offset losses.

The measurement of how far each data element in the data set is away from its mean (average value).

How much the price of an option will change in relation to the volatility of the underlying asset.

An assessment of Risk based upon the Standard Deviation of the asset’s Return.

A certificate issued by a company that gives the holder the option of buying stock shares at a specific Strike price until expiration.

A price chart pattern comprised of two converging lines that connects high and low points on a chart that appears as a triangle.

A mathematical average calculated from the multiplication of each data element by a value representing its importance.

A technical indicator that calculates the average change in a security’s price by applying more value towards the closing prices of that security.

The option contract’s seller.