Trading Glossary

Bank Nifty (CNX Bank Index) is comprised of the most liquid and large capitalized Indian Banking stocks. The index includes 12 banking stocks listed on the National Stock Exchange (NSE)

A bar chart is a type of chart that is used frequently by technical analysts. Price data is represented on a vertical bar. The top of the bar is the highest price and the bottom of the bar the lowest. A dash on the left-hand side of the bar denotes the opening price, while conversely a dash on the right-hand side the closing price.

A benchmark is a standard for measuring the performance of an investment. For example, the CNX Nifty index is a popular benchmark for judging the performance of Indian Stock Market. The goal of most mutual funds and investors is to outperform their respective benchmark.

Beta is a volatility measurement of a stock, ETF or portfolio versus a comparable benchmark like the CNX Nifty stock index. A stock or ETF with a higher beta than the Index will rise or fall to a greater degree than the Index. In contrast, a stock or ETF with a low beta will rise or fall less. The Beta factor describes the movement in a stock's or a portfolio's returns in relation to that of the market returns.

Black-Scholes formula is the first widely used model for option pricing. It is used to calculate a theoretical value for an option using current stock prices, expected dividends, the option's strike price, expected interest rates, time to expiration and expected stock volatility.

A debt instrument issued by governments and corporations to raise capital. Interest on the outstanding debt is paid to bondholders at specific intervals, with the principal amount of the loan paid on the bond maturity date.