Knowledge Base

Options are financial instruments whose value is derived from the price of an underlying asset of various kinds (real as...

Traders define options as "in the money" (ITM) or "out of the money" (OTM) by the strike price's position relative to th...

Also known as the Black-Scholes-Merton or BSM model, it's a differential equation that's widely used to calculate the th...

The numerical indicators that express the different components that determine the price of an option are called "greeks"...

The Intrinsic value of both call and put options is the difference between the underlying stock's price and the strike p...

The Put/Call Ratio is a financial indicator that measures the ratio between the trading volume of put options and call o...

Delta hedging is a sophisticated risk management strategy that allows traders and portfolio managers to neutralize direc...

A statistical distribution is a mathematical description of how the values of a variable are distributed within a data s...

Linear Regression is a statistical technique used to model the relationship between a dependent variable and one or more...

Volatility quantifies significant price fluctuations of an asset or financial instrument. Higher volatility increases th...

Historical volatility (HV) is a fundamental statistical concept in financial markets that measures the degree of variati...

Mean reversion is a fundamental concept in finance suggesting that some asset prices tend to return to their long-term a...

Skewness is the property of an observed distribution that indicates absence of specularity with respect to any vertical ...

Correlation measures the statistic relationship between two assets, indicating whether and how much they tend to vary to...

Cointegration occurs when two or more nonstationary time series have a linear combination that is stationary. In simpler...

Cycle Analysis is a method used to identify recurring patterns in financial markets. It's based on the premise that mark...

Monte Carlo simulation is a computational algorithm that relies on repeated random sampling to obtain numerical results....

It is a statistical test used to test whether a sample of data comes from a normal distribution. It is based on the meas...

It is a statistical test used to test whether a sample of data comes from a particular theoretical distribution (such as...

It is a statistical test used to test whether a sample of data comes from a particular theoretical distribution. Unlike ...

Technical analysis was born around 1900 from the studies of Charles Dow, creator of the Dow Jones index, through the stu...

It is an average of a certain amount of data that only considers the latest data in chronological order. This tool is, i...

It is an indicator formed by three distinct lines on the chart that indicate price ranges: the central line represents...

It is one of the most widely used technical analysis oscillator ever. The purpose of the RSI is to provide an indication...

It is a Momentum indicator that measures the percentage change in price over the reference period. It is calculated by ...

It is a type of technical oscillator that uses price and volume data simultaneously to determine, like RSI, whether an a...

It is an oscillator with a complex construction, but which has the advantage of limiting the subjectivity of the analyst...

The ATR measures the volatility of a market in a specific period. It considers price gaps that can form between one day ...

The Accumulation/Distribution Line measures the flow of money entering and exiting the market, highlighting whether inve...

The CMF is an indicator created by Marc Chaikin that compares buying pressure with selling pressure, revealing the inter...

The CMO is an indicator created by Tushar Chande to identify changes in a security's trend. It measures the rate of chan...

The Disparity Index is a momentum indicator that shows the direction of an asset's movement relative to a moving average...

Invented by Japanese journalist Goichi Hosada in 1969, the IKH shows price trend levels and support and resistance areas...

The OBV is designed to measure the flow of volumes in and out of a financial instrument. It measures the total positive ...

Pivot points are useful indicators for identifying potential intraday support and resistance areas, valid for the next s...

The PPO is one of the most widely used trading indicators, considered by many experts to be the evolution of the MACD. I...

The Stochastic Oscillator is a momentum indicator that analyzes the strength and speed of an ongoing trend. It is based ...

The Williams %R oscillator is very similar to the stochastic, but while the latter uses the difference between close and...

The Zig Zag indicator is a technical analysis tool used to determine support and resistance levels. It connects some poi...

It represents the average price of a security, adjusted for trading volume, over a specific period. This metric offers i...

It is an analysis tool that shows the distribution of volumes traded at specific price levels over a given time period. ...

They are based on the same fundamental data, price and volume. Both seek to explain the relationship between price move...

It is a technical indicator used to measure the volume of buying versus selling over time. It is commonly used to under...

DMI consists of three fundamental elements: 1) ADX: this is the main variable, the one already operating in the initial...

The WMA is a technical indicator that traders use to generate trading direction and make buy or sell decisions. It assig...

The DEMA is a measurement of a security's moving average that gives greater weight to recent price data. Like the expone...

The calculation principle of the TEMA is similar to the Double Exponential Moving Average (DEMA). The name "Triple Expon...

The ATR primarily measures the volatility of a market in a specific period. Unlike Standard Deviation, the innovation in...

The momentum indicator is a technical analysis tool used to identify ongoing trends and their remaining strength. It gra...

Fibonacci analysis, named after the famous Italian mathematician Leonardo da Pisa, known as Fibonacci, are based on a un...

Macroeconomics studies the behavior and performance of entire economies, analyzing aggregate indicators like gross domes...

Microeconomics examines the behavior of individual economic units such as consumers, firms, and industries, focusing on ...

The Buffett Indicator (also known as Buffett Index or Buffett Ratio) represents the ratio of the total United States sto...

In economics, inflation refers to a generalized and continuous increase in prices over time. It is a crucial indicator b...

An index, in finance, is a statistical measure that tracks the performance of a group of assets. It serves as a benchmar...

Commodities are standardized, interchangeable physical goods that serve as inputs in the production of other goods or se...

Central banks are the cornerstone institutions of modern monetary systems, responsible for managing national monetary po...

Exchange-Traded Funds (ETFs) are investment funds that trade on stock exchanges like individual stocks, offering investo...

Bonds are debt securities issued by governments, municipalities, or corporations to raise capital, representing a loan m...

The yield curve represents the relationship between interest rates and time to maturity for bonds of similar credit qual...

The COT Report is a weekly report published by the U.S. Commodity Futures Trading Commission (CFTC) that provides inform...

GICS is an industry analysis framework that helps investors understand the key business activities for companies around ...

Energy sector includes companies that operate in the production and distribution of energy, both from fossil and renewab...

Utilities, or utility companies, are companies specialized in providing essential services for society, such as electric...

The consumer staples sector includes non-cyclical companies that produce or sell goods or services that are always in de...

Consumer discretionary includes companies that offer non-essential goods and services, whose demand varies with the econ...

This sector includes companies that provide content, data, communication and entertainment services. It is a sector that...

The industrial sector includes enterprises and companies that operate in the production of capital goods and machinery u...

Sector that includes banks, insurance companies, wealth management firms and other financial services. It is the heart o...

The health care sector includes companies that operate in healthcare, from pharmaceutical production to management of he...

The IT sector includes companies that develop digital technologies, software, hardware and IT services. It is the engine...

Includes companies that produce raw materials used in construction, industry and manufacturing. Main sub-sectors: basic ...

Includes companies that own, develop or manage real estate. Often structured as REITs, they offer stable returns and div...

The foreign exchange market, or forex, is an international, over-the-counter, or decentralized market for currency excha...

OPEC is the acronym for Organization of the Petroleum Exporting Countries, and refers to the organization of countries t...

The Anglo-Saxon acronym M&A stands for mergers and acquisitions, in Italian fusioni e acquisizioni. These are extraordin...

The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting...

The Return on Equity (ROE), defined as Net Income / Shareholders Equity, reflects the yield obtained on the capital inve...

Also known as Modern Portfolio Theory (MPT), it's a mathematical framework for assembling a portfolio of assets that max...

The Capital Asset Pricing Model (CAPM) is a fundamental framework used to determine the theoretically appropriate requir...

Beta measures an asset's volatility in relation to the overall market benchmark. A Beta of 1.0 indicates that the asset'...

Jensen's Alpha is a risk-adjusted performance measure that represents the average return on an investment above or below...

Developed by William F. Sharpe, this ratio is the industry standard for calculating risk-adjusted return. It measures th...

The Treynor Ratio is similar to the Sharpe Ratio, but with one key difference: it uses Beta (market risk) as the measure...

Behavioral finance challenges the traditional assumption that investors are rational actors who process information obje...

The VIX (Volatility Index), known as the fear gauge, measures implied volatility of S&P 500 options and serves as a key ...

Initially developed by Merrill Lynch, the MOVE index serves as the bond market's equivalent of the VIX. The MOVE index m...