Trading Glossary

A small group of traders who track each other's discipline scores and call out bad trading behavior. TradeLossMD's referral program uses this concept — invite trading buddies so you improve together.

Buying more of a losing position hoping the price comes back up. For example, buying 1 lot of NIFTY CE at ₹100, it drops to ₹60, and you buy another lot. This doubles your loss if the trade continues to go wrong. TradeLossMD's Pyramid Score detects this behavior.

A measure of how much a stock or index typically moves in a day. High ATR means more volatile market. Traders use ATR to set stop-losses.

Analysing your trading data not just for profit/loss, but for patterns in your decision-making — like when you trade emotionally, when you take revenge trades, or when your position sizing becomes erratic. This is TradeLossMD's core function.

A mathematical formula used to calculate the fair price of an options contract. TradeLossMD uses Black-Scholes to calculate Delta, Gamma, Theta, Vega and IV for your options trades.

The fee charged by your broker for executing each trade. Zerodha charges ₹20 per executed order. TradeLossMD's Fee Audit shows exactly how much you've paid in brokerage.

A contract that gives you the right to BUY an asset at a fixed price before expiry. If you buy a NIFTY 24500 CE, you profit if NIFTY rises above 24500. CE stands for Call European.

Re-entering the same trade within minutes of a loss on the same instrument — driven by emotion. TradeLossMD detects chaser trades made within 5 minutes of a losing exit.

A measure of how consistent your position sizes are. A CV below 0.3 means disciplined sizing. Above 0.6 means erratic — you're betting randomly based on emotions. TradeLossMD shows your CV in the Sizing Consistency metric.

The tendency to look for information that confirms what you already believe and ignore evidence against it. In trading, it means you see reasons to stay in a losing trade rather than cut it.

A mandatory pause between trades, especially after a loss. TradeLossMD's Rule Adherence tracks whether you waited at least 15 minutes after a losing trade before entering the next one.

Comma-Separated Values. A simple spreadsheet file. Your broker lets you download your tradebook as a CSV file. This is what you upload to TradeLossMD for analysis.

A personal rule where you stop trading for the day once your losses reach a set amount. TradeLossMD tracks how often you breach this rule in the Rule Adherence section.

How much your option's price changes when the underlying moves by 1 point. A Delta of 0.5 means your CE option gains ₹0.50 for every ₹1 NIFTY moves up.

The percentage drop from your highest account value to the lowest point. If your account was ₹1,00,000 and fell to ₹80,000, your drawdown is 20%. A 100% drawdown means your entire trading capital was wiped out.

Making trading decisions based on feelings — fear, greed, revenge, hope — rather than a rational plan. TradeLossMD's entire platform is designed to detect and reduce emotional trading.

A chart showing how your total profit/loss has changed trade by trade over time. A smooth upward line means consistent trading. A jagged curve with sudden drops means emotional blow-ups.

Fees charged by NSE or BSE for using their trading platform. Shown in TradeLossMD's Fee Audit section.

The date when an options contract becomes worthless if not exercised. In India, NSE weekly options expire every Thursday. Options lose value rapidly as expiry approaches due to Theta decay.

The anxiety that you're missing a profitable move and need to jump into a trade immediately without proper analysis. FOMO causes late entries and chaser trades after losses. TradeLossMD calculates your FOMO Score and FOMO Tax.

The total amount of money you lost specifically due to re-entering the same trade within 5 minutes of a loss. TradeLossMD puts an exact rupee figure on your panic trading.

TradeLossMD's measure of how selective you are about which instruments you trade. Trading 2-3 instruments means high focus score. Trading 20+ different instruments means low focus score.

Derivative financial instruments whose value is derived from an underlying asset like NIFTY, BANKNIFTY or individual stocks. TradeLossMD is built specifically for F&O traders.

How fast Delta changes as the underlying moves. Options near expiry with strike close to market price have very high Gamma — they can double or halve in minutes. Gamma risk is why trading on expiry day is dangerous.

A collective term for Delta, Gamma, Theta, Vega — the mathematical measures of how an option's price changes based on different market conditions. TradeLossMD calculates all four for your options trades.

Goods and Services Tax. 18% tax charged on brokerage fees in India. If your brokerage is ₹1,000, you additionally pay ₹180 as GST. Shown in TradeLossMD's Fee Audit.

The difference between how long you hold winning trades vs losing trades. Healthy trading means cutting losses fast and letting winners run. If you hold losers 3x longer than winners, TradeLossMD flags this as INVERTED psychology.

TradeLossMD's measure of how often you hold losing trades hoping they'll recover, instead of cutting them at your stop-loss.

The market's expectation of how much an underlying will move in the future. High IV means expensive options. When IV crushes after an event like Budget or RBI policy, option buyers can lose money even if they predicted the direction correctly.

An option that has intrinsic value. A NIFTY 24000 CE is ITM if NIFTY is trading at 24500. ITM options are more expensive but have higher Delta.

The historical time period TradeLossMD analyses from your uploaded tradebook. Free plan analyses any 30-day window. Pro analyses any 6-month window. Elite offers 1-year analysis.

The psychological tendency to feel the pain of a loss more intensely than the pleasure of an equal gain. Research shows humans feel losses 2x more painfully than equivalent gains. In trading, this causes you to hold losers too long and cut winners too early.

Consecutive losing trades without a winner in between. TradeLossMD detects your worst loss streak and tracks whether you stopped trading after 3 consecutive losses.

The minimum number of units in one F&O contract. NIFTY lot size is 25. BANKNIFTY is 15. SENSEX is 10. You cannot buy half a lot.

The largest peak-to-trough decline in your account value during the analysis period. A 100% MDD means your entire capital was lost at some point.

A stop-loss level you decide in your head rather than placing an actual order. Dangerous because emotions override it when the market reaches that level.

Your actual profit or loss AFTER subtracting all fees — brokerage, STT, exchange charges, GST, stamp duty. This is what you actually made or lost.

National Stock Exchange. India's largest stock exchange by volume and the primary exchange for F&O trading. NIFTY 50 and BANKNIFTY are NSE indices.

The total number of outstanding options or futures contracts that have not been settled. High OI at a strike price indicates strong support or resistance.

An option with no intrinsic value. Most OTM options expire worthless — this is why option selling is statistically profitable.

Taking more trades than your strategy requires, usually driven by boredom, FOMO or the urge to make back losses quickly. TradeLossMD detects overtrading by identifying days where you exceeded your maximum trades per day rule.

TradeLossMD's measure of fear-driven trading behavior — cutting winners too early, shrinking position sizes after losses, avoiding trading after a bad day.

Increasing your trade size after a loss — betting bigger to try to recover faster. One of the four factors in TradeLossMD's Tilt Score.

How many lots or shares you buy in each trade. TradeLossMD's Sizing Consistency CV Score measures whether your position sizes are disciplined or random.

Total gross profit divided by total gross loss. Above 1.0 means profitable. Above 1.5 is good. Below 1.0 means you lose more than you make.

A contract that gives you the right to SELL an asset at a fixed price before expiry. If you buy a NIFTY 24000 PE, you profit if NIFTY falls below 24000. PE stands for Put European.

TradeLossMD's metric measuring whether you add capital to winning positions (smart) or losing positions (dangerous). A score of 75-100 is healthy. Below 30 means you're consistently adding to losers.

The interest rate at which the Reserve Bank of India lends money to commercial banks. TradeLossMD uses the current RBI Repo Rate (6.5%) as the risk-free rate in its Black-Scholes model.

Trading with the specific intent of making back money lost in a previous trade — driven by anger rather than a valid setup. TradeLossMD detects revenge trades and shows you exactly how much they cost you.

The ratio of your potential loss to your potential gain. A 1:2 RR means you risk ₹50 to potentially make ₹100. Professional traders typically maintain at least 1:1.5.

TradeLossMD's measure of how consistently you follow your own trading rules. Shown as a percentage. 100% means you never broke any rule.

A government tax levied on every securities transaction in India. For F&O options, STT is 0.1% on the premium for buy transactions. Shown in TradeLossMD's Fee Audit.

A state government tax on securities transactions. Very small (0.003% for F&O) but shown in TradeLossMD's Fee Audit for transparency.

A pre-defined price at which you exit a trade to limit your loss. For example, buying NIFTY CE at ₹100 with SL at ₹60 means you exit if it drops to ₹60, limiting your loss to ₹40.

The fixed price at which an options contract can be exercised. If you buy a NIFTY 24500 CE, then 24500 is the strike price. You profit if NIFTY closes above 24500 on expiry day.

Trading Discipline Index. TradeLossMD's proprietary score from 0-100 measuring your overall trading discipline. Combines Tilt Discipline, Drawdown Control, Profitability, Behavioral Control, and Rule Adherence. Above 70 is disciplined. Below 40 is critical.

The daily decay in an option's value purely due to time passing. A Theta of -5 means your option loses ₹5 of value every day even if the market doesn't move. Option buyers lose money to Theta every day. Theta decay accelerates in the last week before expiry.

Holding an options position for too long and losing money purely to time decay while waiting for the market to move in your direction. TradeLossMD identifies Theta Traps in the Behavioral Analysis section.

A state of emotional disruption where a trader abandons their strategy and makes irrational decisions — usually triggered by a large loss. Borrowed from poker terminology. TradeLossMD's Tilt Score measures how often you trade in this state.

TradeLossMD's measure of emotional trading intensity from 0-100. Calculated from Position Escalation, Frequency Spikes, Loss Streaks, and Rapid Re-entry. Above 70 means Full Tilt — stop trading immediately. Below 30 means calm and disciplined.

A downloadable record of all your trades from your broker. Zerodha: Console → Reports → Trade Book. Upstox: Reports → Tradebook. You upload this CSV file to TradeLossMD for analysis.

How much an option's price changes for a 1% change in Implied Volatility. Options bought before a major event like Budget or RBI policy are high Vega — IV rises before the event and crashes after, which can cause losses even if you predicted the direction correctly.

Volatility Index. India VIX measures expected market volatility. High VIX means the market expects big moves and options are expensive. Low VIX means a calm market and cheap options.

TradeLossMD's simulator showing how much money you would have saved if you had followed specific rules — like stopping after 3 consecutive losses or limiting to 3 trades per day. Shows the rupee value of better discipline.

The percentage of trades that close in profit. A 60% win rate means 6 out of 10 trades are winners. High win rate does NOT guarantee profitability — it also depends on average win vs average loss.

Microsoft Excel file format. Some brokers like Upstox and Angel One provide tradebooks as XLSX files. TradeLossMD accepts both CSV and XLSX formats and auto-detects your broker.