OptionChain Learn

Market Search Book

109 Indian market, options and technical terms — each with a plain-English explanation and a worked example. Search for one, or browse the ten topics below. Can't find it in the book? We'll fetch a definition from the web for you.

One hundred and nine terms from Indian equity and derivatives markets, each with a plain-English definition and a worked example. Grouped into ten topics, and searchable.

How this is organised

Definitions in alphabetical order are useful for looking something up and useless for learning anything, because the terms that explain each other end up nowhere near one another. So the glossary is published as ten topic pages instead. Each one carries its whole category, and each opens with a written introduction to how the terms in it fit together — what to read first, which ones matter in the Indian market specifically, and where on this site each one appears as a live number.

If you know what you are looking for, the search box below covers all 109 terms at once and will find them by abbreviation as well as by name. If you don't, start with a topic.

Where to start

If you are trying to read an option chain for the first time, read Options and then the cheat sheet. Those two cover everything on the screen.

If you are already trading and losing money in ways you can't explain, the answer is more often on Greeks — theta and vega specifically — or on Risk & Psychology than anywhere else.

If you are trading Indian derivatives and have not read F&O India, read it. Lot sizes, margin, mark-to-market, STT on exercised options and physical settlement are all local rules with expensive consequences, and none of them transfer from anything written about other markets.

The ten topics

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Options

23

Everything on an option chain is built from a small number of ideas. Learn these twenty-three and the screen stops being a wall of numbers.

At The Money (ATM)·Bull Call Spread·Call Option (CE)·Change in OI·Covered Call·Expected Move·Expiry·Implied Volatility (IV)·In The Money (ITM)·Intrinsic Value·Iron Condor·IV Rank / IV Percentile·Max Pain·Open Interest (OI)·Option Writing (Selling)·Out of The Money (OTM)·Premium·Put Option (PE)·Put-Call Ratio (PCR)·Straddle·Strangle·Strike Price·Time Value (Extrinsic)

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Greeks

5

Five numbers that say how an option's price responds to everything that can change around it. Two of them decide most weekly-expiry trades.

Delta·Gamma·Rho·Theta·Vega

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