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Chapter 1: Market Structure and Order Flow

87 terms, drawn from GhostWire Ch.1, 5, 16, 18, 19, 20

A4 terms

Accelerator#: Ch. 8Events, Forced Flows and Themes; A chip, usually a GPU, built to train and run AI models; RelatedHBM Foundry and packaging Capex; Taught inGhostWire Ch.30
Acceptance and retest#: Ch. 4Dealer Flow and Volatility; Acceptance: consecutive closes beyond the level. Retest: a later pullback that comes back to the level; RelatedTouch, poke and close beyond Call wall Daily sigma; Taught inGhostWire Ch.9
Acquired or disposed (A or D)#: Ch. 7Disclosures, Insiders and Big Money; Whether the line added shares to the insider or removed them; RelatedDirect or indirect (D or I)Section 16 insider Securities owned following; Taught inGhostWire Ch.3
Address and wallet#: Ch. 10Crypto, DeFi and On-Chain; An address receives coins; a wallet is software or hardware that controls one or many addresses; RelatedDeposit address and sweep Custody wallet Hot and cold wallet; Taught inGhostWire Ch.11
Adjusted (non-GAAP) earnings#: Ch. 8Events, Forced Flows and Themes; Earnings with items the company chooses to exclude; RelatedPost-earnings drift Carry-adjusted theta Delta-adjusted notional; Taught inGhostWire Ch.25
ADV#: Ch. 1Market Structure and Order Flow; Average daily volume, often over 20 trading days; RelatedAverage-price or benchmark trade Marketable order Wholesaler or internalizer; Taught inGhostWire Ch.1
Advisory committee#: Ch. 8Events, Forced Flows and Themes; A panel of outside experts that votes on a drug and advises the FDA; Relatedp-value NDA and BLA Class 1 and Class 2 resubmission; Taught inGhostWire Ch.7
Aggressor and tick test#: Ch. 1Market Structure and Order Flow; The side that initiated a trade, inferred by comparing price with the quote or with the previous trade price; RelatedTrade side or aggressor Lit market Price improvement; Taught inGhostWire Ch.1
Allocation#: Ch. 7Disclosures, Insiders and Big Money; The underwriters’ choice of who receives shares; RelatedQuiet period Stabilization Greenshoe (overallotment option); Taught inGhostWire Ch.15
AM and PM settlement#: Ch. 4Dealer Flow and Volatility; Monthly SPX options settle on a morning value; SPXW options settle at the close; RelatedSettlement date Touch, poke and close beyond Special Opening Quotation; Taught inGhostWire Ch.9
Amendment#: Ch. 7Disclosures, Insiders and Big Money; A corrected filing that replaces or adds to an earlier one; Related13F-HR, 13F-NT and amendments Filing date and publication date Periodic transaction report (PTR); Taught inGhostWire Ch.12
Amount band#: Ch. 7Disclosures, Insiders and Big Money; The range the trade value falls in, such as $15,001 to $50,000, instead of an exact figure; RelatedPeriodic transaction report (PTR)Transaction date Cluster; Taught inGhostWire Ch.2 GhostWire Ch.12
Amplitude estimation#: Ch. 8Events, Forced Flows and Themes; A quantum method to estimate an average, such as the mean in a Monte Carlo simulation; RelatedMonte Carlo simulation Superposition and amplitude Estimation error; Taught inGhostWire Ch.26
Annual financial disclosure#: Ch. 7Disclosures, Insiders and Big Money; A once-a-year statement of assets, income and liabilities, reported in wide ranges rather than trade by trade; RelatedSTOCK Act Periodic transaction report (PTR)Cluster; Taught inGhostWire Ch.2 GhostWire Ch.12
Annualization#: Ch. 2Indicators and Valuation; Scaling a monthly ratio to a yearly one by multiplying by √12; RelatedOut-of-sample test Standard error of a Sharpe ratio Drawdown; Taught inAdvanced Ch.3
Annualized rate#: Ch. 6Rates, Fed, Macro and Forex; A monthly change compounded for twelve months; RelatedMonth over month and annualized Month over month (MoM)Contribution; Taught inGhostWire Ch.6
Arbitrage re-pricing#: Ch. 10Crypto, DeFi and On-Chain; Traders trade the pool until its price matches outside markets; RelatedTriangular arbitrage Pool turnover Swap fee; Taught inAdvanced Ch.14
Asset type#: Ch. 7Disclosures, Insiders and Big Money; Whether the row is a stock, bond, option, fund or other holding; RelatedNotification date Cluster Discretionary account; Taught inGhostWire Ch.2
Assignment risk#: Ch. 3Options Mechanics and the Greeks; A short option that is in the money can be exercised against the seller; RelatedEarly assignment Credit Roll; Taught inAdvanced Ch.10
ATM straddle and implied move#: Ch. 8Events, Forced Flows and Themes; A call and a put at the same strike; their combined price divided by the stock price is the implied move; RelatedImplied move At-the-money straddle Straddle; Taught inGhostWire Ch.7
ATR#: Ch. 2Indicators and Valuation; Wilder-smoothed average of TR: ATR_new = ((n − 1) × ATR_old + TR) / n; RelatedATR-based position size Gap EMA; Taught inAdvanced Ch.1
ATR-based position size#: Ch. 2Indicators and Valuation; Shares = risk budget / (multiple × ATR); RelatedATR Signal line Smoothing factor (α); Taught inAdvanced Ch.1
ATS or dark pool#: Ch. 1Market Structure and Order Flow; A venue that matches orders without displaying them first; RelatedLiquidity pool and depth Consolidated tape and SIP Pool spot price; Taught inGhostWire Ch.1
At-the-money straddle#: Ch. 4Dealer Flow and Volatility; A call and a put at the same strike near the stock price; RelatedStraddle ATM straddle and implied move Smart Money and Dumb Money Confidence; Taught inAdvanced Ch.11
Authorized participant#: Ch. 10Crypto, DeFi and On-Chain; A firm allowed to create or redeem tokens against shares; RelatedAuthorized participant (AP)Maker and taker Issuer-native token; Taught inGhostWire Ch.29
Authorized participant (AP)#: Ch. 8Events, Forced Flows and Themes; A firm that creates or redeems ETF shares in blocks against a basket of the fund’s securities; RelatedAuthorized participant Block Creation unit; Taught inGhostWire Ch.24
Automated market maker (AMM)#: Ch. 10Crypto, DeFi and On-Chain; A pool that prices trades by a formula from its two reserves; RelatedMaker and taker Reserve Market maker (dealer); Taught inGhostWire Ch.29
Average-price or benchmark trade#: Ch. 1Market Structure and Order Flow; A trade whose price is a computed average or a benchmark such as the day’s volume-weighted average price; RelatedADV Price improvement Marketable order; Taught inGhostWire Ch.1

B2 terms

Backlog or remaining performance obligations#: Ch. 8Events, Forced Flows and Themes; Signed contracts not yet recognized as revenue; RelatedRun-rate revenue Gross margin Hyperscaler; Taught inGhostWire Ch.30
Bandwidth#: Ch. 2Indicators and Valuation; (upper band − lower band) / middle band; RelatedHBM Percent b (%b)Histogram; Taught inAdvanced Ch.1
Base effect#: Ch. 6Rates, Fed, Macro and Forex; The change in YoY caused by the month that drops out of the 12-month window; RelatedYear over year (YoY)Consensus Whisper number; Taught inGhostWire Ch.6
Base rate#: Ch. 8Events, Forced Flows and Themes; How often an outcome occurs in general; RelatedPriced in Adjusted (non-GAAP) earnings Guidance; Taught inGhostWire Ch.25
Base volatility#: Ch. 4Dealer Flow and Volatility; The volatility the stock shows on ordinary days with no scheduled event; RelatedImplied volatility (IV)At-the-money straddle Implied event move; Taught inAdvanced Ch.11
Baseline and ablation#: Ch. 8Events, Forced Flows and Themes; The classical method a result is compared with, and the same pipeline with the quantum part removed; RelatedHybrid and quantum-inspired Quantum advantage Amplitude estimation; Taught inGhostWire Ch.26
Basic and fully diluted shares#: Ch. 7Disclosures, Insiders and Big Money; Shares outstanding now, and that number plus options, restricted stock units and convertibles; RelatedFully collateralized contract Shares versus principal (SH and PRN)Quiet period; Taught inGhostWire Ch.15
Basis and basis risk#: Ch. 5Risk, Sizing and Hedging; Basis is spot minus futures price; basis risk is the chance that gap changes; RelatedBasis trade Basis point (bp)Over-hedge and under-hedge; Taught inAdvanced Ch.4
Basis point (bp)#: Ch. 6Rates, Fed, Macro and Forex; One hundredth of a percentage point, 0.01%; RelatedDV01 Federal funds target range Curve spread (2s10s, 3m10y); Taught inGhostWire Ch.4 GhostWire Ch.14 GhostWire Ch.22
Basis trade#: Ch. 6Rates, Fed, Macro and Forex; Long a cash Treasury, short the matching future, financed in repo, to collect a small convergence; RelatedBasis point (bp)Basis and basis risk SOFR and IORB; Taught inGhostWire Ch.22
Beat and raise#: Ch. 8Events, Forced Flows and Themes; A result above consensus together with guidance above consensus; RelatedGuidance Consensus Straddle; Taught inGhostWire Ch.25
Beneficial ownership#: Ch. 7Disclosures, Insiders and Big Money; The power to vote or to dispose of shares, the test used for Schedule 13D and 13G; RelatedSchedule 13D and 13G Dealer or counterparty Reference asset; Taught inGhostWire Ch.13
Best-idea weight and crowding#: Ch. 7Disclosures, Insiders and Big Money; Largest positions are the manager’s strongest views; crowding is many managers holding the same name; RelatedCrowding Weight drift 13F-HR, 13F-NT and amendments; Taught inGhostWire Ch.10
Beta#: Ch. 5Risk, Sizing and Hedging; The slope of portfolio returns on index returns; RelatedSpread (pair)Correlation (ρ)Hedge effectiveness; Taught inAdvanced Ch.4 Advanced Ch.13
Bid and ask#: Ch. 6Rates, Fed, Macro and Forex; The price at which a dealer buys (bid) and sells (ask) the base currency; RelatedMarket maker (dealer)Depth Microprice; Taught inAdvanced Ch.17
Bid, ask and order book#: Ch. 10Crypto, DeFi and On-Chain; Resting offers to buy and to sell, stacked by price; RelatedNew-issue concession and order book Order book imbalance Maker and taker; Taught inGhostWire Ch.29
Bid-to-cover, tail, dealer takedown#: Ch. 6Rates, Fed, Macro and Forex; Bids divided by the amount sold; the high yield minus the when-issued yield; the share dealers had to absorb; RelatedMarket maker (dealer)Short interest and days to cover Fat tails; Taught inGhostWire Ch.22
Binary event and single-asset company#: Ch. 8Events, Forced Flows and Themes; A dated event with two very different outcomes, and a firm whose value rests on one product; RelatedTopline data IV crush Complete Response Letter (CRL); Taught inGhostWire Ch.7
Blackout period#: Ch. 6Rates, Fed, Macro and Forex; The stretch before a meeting when officials stop speaking publicly on policy; RelatedFOMC and blackout period Market-implied path Buyback blackout; Taught inGhostWire Ch.4
Blind trust#: Ch. 7Disclosures, Insiders and Big Money; An arrangement in which an independent trustee manages assets without telling the owner individual trades; RelatedQualified blind trust Periodic transaction report (PTR)Owner code; Taught inGhostWire Ch.2
Block#: Ch. 1Market Structure and Order Flow; A large trade, commonly 10,000 shares or $200,000; RelatedSweep, block and complex order Authorized participant (AP)Creation unit; Taught inGhostWire Ch.1
Body#: Ch. 3Options Mechanics and the Greeks; The strike where the two short options of a butterfly sit; RelatedBroken wing Ratio Value at Risk (VaR); Taught inAdvanced Ch.7
Bonding curve#: Ch. 10Crypto, DeFi and On-Chain; A pricing formula where each buy raises the price and each sell lowers it, with no order book; RelatedVirtual reserves Curve spread (2s10s, 3m10y)Equity curve; Taught inGhostWire Ch.21
Bonferroni cutoff#: Ch. 9Quant, Backtesting and Automation; The per-test level that holds the family-wise error at its target: level ÷ N; RelatedFamily-wise error Target (minimum acceptable return)t-statistic; Taught inAdvanced Ch.8
Borrow fee and utilization#: Ch. 1Market Structure and Order Flow; The annual cost of borrowing shares, and the share of lendable shares already on loan; RelatedSecurities lending reporting (SLATE)Open interest Reg SHO threshold list; Taught inGhostWire Ch.16
Breakeven#: Ch. 3Options Mechanics and the Greeks; The price at which total profit or loss is zero; RelatedBreakeven win rate Breakeven inflation Fee breakeven; Taught inAdvanced Ch.2 Advanced Ch.5 Advanced Ch.7 Advanced Ch.10
Breakeven inflation#: Ch. 6Rates, Fed, Macro and Forex; The nominal Treasury yield minus the TIPS yield of the same maturity; RelatedReal yield (TIPS)Headline and core inflation Growth and inflation quadrants; Taught inGhostWire Ch.6 GhostWire Ch.22 GhostWire Ch.28
Break-even move#: Ch. 3Options Mechanics and the Greeks; The daily stock move at which gamma P&L exactly equals the time cost; RelatedGamma P&L Break-even product Break-even widening; Taught inAdvanced Ch.6
Break-even product#: Ch. 9Quant, Backtesting and Automation; 1 divided by (1 − cost) cubed; RelatedBreak-even move Break-even widening Rate product; Taught inAdvanced Ch.12
Break-even widening#: Ch. 6Rates, Fed, Macro and Forex; The spread rise that cancels one year of carry; RelatedCarry Break-even move Break-even product; Taught inGhostWire Ch.23
Breakeven win rate#: Ch. 3Options Mechanics and the Greeks; The share of full-profit outcomes a credit spread needs just to break even; RelatedCredit spread Breakeven Credit; Taught inAdvanced Ch.5 Advanced Ch.7 Advanced Ch.10
Brent and WTI#: Ch. 6Rates, Fed, Macro and Forex; The two benchmark crude oil prices, one priced from the North Sea, one from the United States; RelatedRegime and dominant driver Headline and core inflation Liquidity; Taught inGhostWire Ch.28
Bridge and wrapped token#: Ch. 10Crypto, DeFi and On-Chain; A bridge moves value between chains, commonly by locking a coin on one chain and issuing a wrapped copy on another; RelatedWrapped token Direct token OTC desk; Taught inGhostWire Ch.11
Broken wing#: Ch. 3Options Mechanics and the Greeks; A butterfly whose two wings have unequal widths; RelatedWing width Body Expected shortfall; Taught inAdvanced Ch.7
Bull, bear, steepener, flattener#: Ch. 6Rates, Fed, Macro and Forex; Bull: yields fall. Bear: yields rise. Steepener: the long-minus-short spread widens. Flattener: it narrows; RelatedConvexity Curve spread (2s10s, 3m10y)Modified duration; Taught inGhostWire Ch.22
Bundle and cluster#: Ch. 10Crypto, DeFi and On-Chain; A bundle is wallets acting together at launch; a cluster is wallets tied by funding or coordinated transfers; RelatedCluster Sniper Supply concentration; Taught inGhostWire Ch.21
Buyback blackout#: Ch. 8Events, Forced Flows and Themes; The weeks before earnings when a company typically does not repurchase its own shares; RelatedBlackout period FOMC and blackout period Quarterly expiration; Taught inGhostWire Ch.24

C11 terms

Calibration#: Ch. 10Crypto, DeFi and On-Chain; Whether events priced at x cents happen about x% of the time; RelatedFavorite-longshot bias Issuer-native token Premium or discount; Taught inGhostWire Ch.29
Call wall#: Ch. 4Dealer Flow and Volatility; The strike with the largest call-side gamma; RelatedCall wall and put wall Put wall Gamma; Taught inGhostWire Ch.9
Call wall and put wall#: Ch. 4Dealer Flow and Volatility; The strikes carrying the largest call-side and put-side gamma; RelatedGamma Call wall Put wall; Taught inGhostWire Ch.8
Cap#: Ch. 5Risk, Sizing and Hedging; The gain up to the call strike minus the net premium, as a percentage of value; RelatedNet premium (tide)Pre-trade limits and kill switch Slippage tolerance; Taught inAdvanced Ch.4
Capex#: Ch. 8Events, Forced Flows and Themes; Spending on long-lived assets such as data centers, chips and servers; RelatedFree cash flow Accelerator Foundry and packaging; Taught inGhostWire Ch.30
Carry#: Ch. 6Rates, Fed, Macro and Forex; Income earned by holding the bond, here the spread over Treasuries; RelatedCarry (cash-and-carry)Break-even widening Professional and non-professional; Taught inGhostWire Ch.23
Carry (cash-and-carry)#: Ch. 10Crypto, DeFi and On-Chain; Return earned from holding a hedged position, here the funding received; RelatedCarry Break-even widening Professional and non-professional; Taught inAdvanced Ch.15
Carry-adjusted theta#: Ch. 3Options Mechanics and the Greeks; Theta plus the interest earned on the hedge and paid on the option cost; RelatedTheta (Θ)Carry Carry (cash-and-carry); Taught inAdvanced Ch.6
Cash runway#: Ch. 8Events, Forced Flows and Themes; Cash divided by the rate at which it is spent; RelatedCash runway and dilution Baseline and ablation Harvest now, decrypt later; Taught inGhostWire Ch.26
Cash runway and dilution#: Ch. 8Events, Forced Flows and Themes; Quarters of spending the cash on hand can fund, and the new shares sold to extend it; RelatedCash runway Pivotal trial and primary endpoint Run-up and sell the news; Taught inGhostWire Ch.7
Cashless exercise#: Ch. 7Disclosures, Insiders and Big Money; Exercising options and selling the shares on the same day to pay the strike and keep the spread in cash; RelatedStrike or exercise price Tax withholding (code F)Table I and Table II; Taught inGhostWire Ch.3
Cash-settled#: Ch. 7Disclosures, Insiders and Big Money; Settled in cash with no delivery of shares; RelatedMaintenance requirement and margin call Static and dynamic margining Initial margin; Taught inGhostWire Ch.13
CDS and CDX#: Ch. 6Rates, Fed, Macro and Forex; Credit default swaps on one borrower, and indices of them; RelatedCredit Credit spread New-issue concession and order book; Taught inGhostWire Ch.23
Chance of profit#: Ch. 3Options Mechanics and the Greeks; Probability of finishing inside the profit zone; RelatedProfit zone Loss limit Credit; Taught inAdvanced Ch.10
Charm#: Ch. 4Dealer Flow and Volatility; The change in delta caused by time alone; RelatedDelta Vanna Gamma; Taught inGhostWire Ch.8 GhostWire Ch.17 Advanced Ch.6
Circuit depth and T gates#: Ch. 8Events, Forced Flows and Themes; The number of sequential steps in an algorithm, and a costly type of operation counted in resource estimates; RelatedHybrid and quantum-inspired Amplitude estimation Post-quantum cryptography; Taught inGhostWire Ch.26
Circular financing#: Ch. 8Events, Forced Flows and Themes; A supplier funds a customer that then buys from the supplier; RelatedFinancing leg Capex Pre-trade limits and kill switch; Taught inGhostWire Ch.30
Class 1 and Class 2 resubmission#: Ch. 8Events, Forced Flows and Themes; The answer to a CRL. Under the review-goal commitments a minor resubmission has a 2-month goal and a major one a 6-month goal; RelatedComplete Response Letter (CRL)Expedited programs PDUFA goal date; Taught inGhostWire Ch.7
Clinical hold#: Ch. 8Events, Forced Flows and Themes; An FDA order to pause or stop a trial; RelatedPivotal trial and primary endpoint Run-up and sell the news p-value; Taught inGhostWire Ch.7
Close-out#: Ch. 1Market Structure and Order Flow; A required purchase or delivery that clears a fail; RelatedReg SHO threshold list Fail to deliver (FTD)Net position and positioning index; Taught inGhostWire Ch.16
Close-out right#: Ch. 7Disclosures, Insiders and Big Money; The dealer’s right to end the swap and sell its hedge; RelatedMarket maker (dealer)Hedge Dealer or counterparty; Taught inGhostWire Ch.13
Closing auction#: Ch. 1Market Structure and Order Flow; The single-price match at 16:00 ET (15:00 CT) that sets the official close; RelatedClosing window Opening auction Opening and closing cross; Taught inGhostWire Ch.20 GhostWire Ch.24
Closing window#: Ch. 1Market Structure and Order Flow; The final hour, 15:00 to 16:00 ET (14:00 to 15:00 CT), assumed to hold more deliberate orders; RelatedClosing auction Opening and closing cross Opening window; Taught inGhostWire Ch.20
Cluster#: Ch. 7Disclosures, Insiders and Big Money; Several filers reporting the same direction in the same name or sector within a short window; RelatedBundle and cluster Dominance and shelf Label and entity; Taught inGhostWire Ch.2 GhostWire Ch.12
CME gap#: Ch. 1Market Structure and Order Flow; The weekly gap on Bitcoin futures that formed because the futures paused while spot kept trading, until CME moved crypto futures to round-the-clock trading in May 2026; RelatedFunding rate and open interest Gap Extended hours; Taught inGhostWire Ch.18
Coin days destroyed#: Ch. 10Crypto, DeFi and On-Chain; Coins moved multiplied by the days since they last moved; RelatedShort interest and days to cover Address and wallet Inflow, outflow and netflow; Taught inGhostWire Ch.11
Collar#: Ch. 5Risk, Sizing and Hedging; A long put combined with a short call on the same holding; RelatedZero-cost collar Cap Residual risk; Taught inAdvanced Ch.4
Commercial hedgers and small speculators#: Ch. 1Market Structure and Order Flow; Two categories in the weekly futures positioning report: businesses hedging real exposure, and small traders; RelatedSmart Money Flow Index (SMFI)Contrarian reading Smart Money Index (SMI); Taught inGhostWire Ch.20
Commitments of Traders (TFF)#: Ch. 1Market Structure and Order Flow; The weekly census of open futures positions by trader type, as of Tuesday and released Friday at 15:30 ET (14:30 CT); RelatedSpreading Open interest RMSE; Taught inGhostWire Ch.16
Common, breakaway, runaway and exhaustion gaps#: Ch. 1Market Structure and Order Flow; The four classic gap types, told apart by where they occur in a trend and by volume; RelatedPreferred and common stock Funding rate and open interest LULD; Taught inGhostWire Ch.18
Complete Response Letter (CRL)#: Ch. 8Events, Forced Flows and Themes; The FDA statement that an application cannot be approved in its present form, with the deficiencies listed; RelatedClass 1 and Class 2 resubmission Label PDUFA goal date; Taught inGhostWire Ch.7
Concentration#: Ch. 8Events, Forced Flows and Themes; A few stocks making up a large share of an index; RelatedSupply concentration Backlog or remaining performance obligations Pre-trade limits and kill switch; Taught inGhostWire Ch.30
Confidential submission and S-1#: Ch. 7Disclosures, Insiders and Big Money; The draft registration statement sent to the SEC, and the public version that follows; RelatedConfidential treatment Preferred and common stock Underpricing; Taught inGhostWire Ch.15
Confidential treatment#: Ch. 7Disclosures, Insiders and Big Money; A request to withhold some holdings from the public record for a time; RelatedConfidential submission and S-1 Best-idea weight and crowding Weight drift; Taught inGhostWire Ch.10
Consensus#: Ch. 6Rates, Fed, Macro and Forex; GhostWire Ch.6The average forecast from a survey of economists; GhostWire Ch.25The average of published analyst estimates for a line such as earnings per share or revenue; RelatedWhisper number Beat and raise Surprise; Taught inGhostWire Ch.6 GhostWire Ch.25
Consolidated tape#: Ch. 1Market Structure and Order Flow; The combined stream of trades and quotes from all venues; RelatedConsolidated tape and SIP Professional and non-professional Escalator; Taught inGhostWire Ch.19
Consolidated tape and SIP#: Ch. 1Market Structure and Order Flow; The single stream that combines every venue’s trades and quotes; RelatedConsolidated tape TRF ATS or dark pool; Taught inGhostWire Ch.1
Constant maturity#: Ch. 4Dealer Flow and Volatility; A fund that keeps its average time to expiry near fixed by moving weight a little each day from the front month to the second month; RelatedRelative importance (weight)Constant-product invariant VIX future; Taught inGhostWire Ch.27
Constant-product invariant#: Ch. 10Crypto, DeFi and On-Chain; The rule x × y = k: after any trade, SOL times tokens in the pool stays the same; RelatedConstant maturity Break-even product ETP, ETN, inverse product; Taught inGhostWire Ch.21 Advanced Ch.14
Contango and backwardation#: Ch. 4Dealer Flow and Volatility; Contango: later maturities cost more than earlier ones. Backwardation: they cost less; RelatedVVIX Skew VIX future; Taught inGhostWire Ch.27
Contrarian reading#: Ch. 1Market Structure and Order Flow; Treating an extreme in a crowd as a warning rather than a confirmation; RelatedLagging indicator Smart Money and Dumb Money Confidence Intraday momentum; Taught inGhostWire Ch.20
Contribution#: Ch. 6Rates, Fed, Macro and Forex; Weight × the component’s percentage change; RelatedRelative importance (weight)Risk parity Risk share; Taught inGhostWire Ch.6
Convexity#: Ch. 6Rates, Fed, Macro and Forex; The curvature of the price-yield relationship: a yield fall adds more price than an equal rise removes; RelatedBull, bear, steepener, flattener Yield to maturity (YTM)Curve spread (2s10s, 3m10y); Taught inGhostWire Ch.22
Core and supercore#: Ch. 6Rates, Fed, Macro and Forex; Core excludes food and energy; supercore is core services excluding shelter; RelatedHeadline and core Headline and core inflation Shelter and owners’ equivalent rent; Taught inGhostWire Ch.6
Correlation breakdown#: Ch. 10Crypto, DeFi and On-Chain; The tendency of correlations to rise toward 1 in a market-wide sell-off; RelatedCorrelation (ρ)Rolling correlation Portfolio volatility; Taught inAdvanced Ch.13
Correlation (ρ)#: Ch. 5Risk, Sizing and Hedging; How closely portfolio and hedge returns move together, from −1 to +1; RelatedCorrelation breakdown Rolling correlation Beta; Taught inAdvanced Ch.4 Advanced Ch.13
Coupon#: Ch. 6Rates, Fed, Macro and Forex; The fixed interest payment, stated as a percent of face value per year; RelatedPar, discount, premium Yield to maturity (YTM)Term premium; Taught inGhostWire Ch.22
Covariance#: Ch. 10Crypto, DeFi and On-Chain; How two assets move together, in squared return units; RelatedPortfolio volatility Risk contribution Variance; Taught inAdvanced Ch.13
CPI-U and CPI-W#: Ch. 6Rates, Fed, Macro and Forex; Price indexes for all urban consumers and for urban wage earners and clerical workers; RelatedContribution Seasonal-factor revision Core and supercore; Taught inGhostWire Ch.6
Creation and redemption#: Ch. 10Crypto, DeFi and On-Chain; Delivering shares to receive tokens, or returning tokens to receive shares; RelatedCreation unit Wrapped token Synthetic or perpetual token; Taught inGhostWire Ch.29
Creation unit#: Ch. 8Events, Forced Flows and Themes; The block of ETF shares an AP creates or redeems, often 25,000 to 50,000 shares; RelatedCreation and redemption Block Stake units (N); Taught inGhostWire Ch.24
Credit#: Ch. 3Options Mechanics and the Greeks; Cash received when a spread is opened; RelatedCumulative credit Profit target Breakeven win rate; Taught inAdvanced Ch.10
Credit spread#: Ch. 6Rates, Fed, Macro and Forex; The extra yield a borrower pays over a Treasury of the same maturity; RelatedBreakeven win rate CDS and CDX New-issue concession and order book; Taught inGhostWire Ch.23
Cross margin#: Ch. 10Crypto, DeFi and On-Chain; The whole account balance backs all positions; RelatedCross rate Opening and closing cross Zero-line cross; Taught inAdvanced Ch.15
Cross rate#: Ch. 6Rates, Fed, Macro and Forex; A pair quoted without the dollar, such as EUR/JPY; RelatedSpread (pair)Cross margin Opening and closing cross; Taught inAdvanced Ch.17
Crowding#: Ch. 8Events, Forced Flows and Themes; Many participants positioned for the same flow ahead of its date; RelatedBest-idea weight and crowding Authorized participant (AP)Forced flow; Taught inGhostWire Ch.24
CTA, trend follower#: Ch. 8Events, Forced Flows and Themes; A systematic futures fund that holds long above trend and short below, scaled by volatility; RelatedRebalancing Quarterly expiration Participation rate; Taught inGhostWire Ch.24
Cumulative credit#: Ch. 3Options Mechanics and the Greeks; All credits received minus all debits paid across a series of rolls; RelatedCredit Roll Debit; Taught inAdvanced Ch.10
Cumulative line#: Ch. 1Market Structure and Order Flow; A series that keeps adding each day’s change without resetting; RelatedCumulative credit Opening window Lagging indicator; Taught inGhostWire Ch.20
Curve spread (2s10s, 3m10y)#: Ch. 6Rates, Fed, Macro and Forex; Long yield minus short yield, in basis points; RelatedBasis point (bp)DV01 Modified duration; Taught inGhostWire Ch.22
CUSIP#: Ch. 7Disclosures, Insiders and Big Money; The nine-character identifier of a security; RelatedInformation table Shares versus principal (SH and PRN)Investment discretion; Taught inGhostWire Ch.10
Custody wallet#: Ch. 10Crypto, DeFi and On-Chain; A wallet run by a regulated custodian for funds and companies; RelatedHot and cold wallet Address and wallet Inflow, outflow and netflow; Taught inGhostWire Ch.11

D5 terms

Daily sigma#: Ch. 4Dealer Flow and Volatility; One standard daily move implied by volatility, about volatility / 15.9; RelatedRealized volatility Gamma squeeze Put wall; Taught inGhostWire Ch.9
Dealer convention#: Ch. 4Dealer Flow and Volatility; The assumption that dealers are long the calls and short the puts customers trade against; RelatedMarket maker (dealer)Bid-to-cover, tail, dealer takedown Dealer hedging; Taught inGhostWire Ch.17
Dealer hedging#: Ch. 1Market Structure and Order Flow; Option dealers trading the stock to stay close to delta-neutral; RelatedMarket maker (dealer)Delta Delta-adjusted notional; Taught inGhostWire Ch.5
Dealer or counterparty#: Ch. 7Disclosures, Insiders and Big Money; The bank on the other side of the swap; RelatedHedge Close-out right Primary dealer; Taught inGhostWire Ch.13
Debit#: Ch. 3Options Mechanics and the Greeks; Price of the back option minus price of the front option; RelatedCumulative credit Zero-cost collar Decay differential; Taught inAdvanced Ch.9
Decay differential#: Ch. 3Options Mechanics and the Greeks; Front premium collected minus the back option’s loss of value over the same days; RelatedDebit Premium Roll-down; Taught inAdvanced Ch.9
Default intensity (hazard)#: Ch. 6Rates, Fed, Macro and Forex; The annual chance of default implied or observed; RelatedCDS and CDX Recovery rate Maturity wall; Taught inGhostWire Ch.23
Delta#: Ch. 4Dealer Flow and Volatility; How much an option price moves per 1.00 move in the stock, about 0.50 at the money; RelatedDelta hedge Gamma Headline and delta-adjusted notional; Taught inGhostWire Ch.5 GhostWire Ch.8 GhostWire Ch.17
Delta hedge#: Ch. 4Dealer Flow and Volatility; Holding shares or futures opposite to the option’s delta so the whole position is neutral to small price moves; RelatedDelta Delta hedge and re-hedge Headline and delta-adjusted notional; Taught inGhostWire Ch.17
Delta hedge and re-hedge#: Ch. 3Options Mechanics and the Greeks; Offsetting the option’s delta with shares, then resetting as delta changes; RelatedDelta Delta hedge Vomma (volga); Taught inAdvanced Ch.6
Delta-adjusted notional#: Ch. 1Market Structure and Order Flow; Contracts × 100 × delta × stock price; RelatedHeadline and delta-adjusted notional Delta Notional and multiplier; Taught inGhostWire Ch.5
Delta-neutral position#: Ch. 10Crypto, DeFi and On-Chain; Long and short exposures that offset, leaving little net price exposure; RelatedDollar-neutral Neutral rate Delta hedge; Taught inAdvanced Ch.15
Deposit address and sweep#: Ch. 10Crypto, DeFi and On-Chain; Exchanges give each customer a deposit address and periodically sweep the balances into a main wallet; RelatedAddress and wallet Sweep, block and complex order Hot and cold wallet; Taught inGhostWire Ch.11
Depth#: Ch. 1Market Structure and Order Flow; GhostWire Ch.5The sizes resting at each price in the order book, not just the best bid and ask; GhostWire Ch.8The dollars of net buying needed to lift the price 1%; RelatedBid and ask Bid, ask and order book Order book imbalance; Taught inGhostWire Ch.5 GhostWire Ch.8 GhostWire Ch.29
Direct listing#: Ch. 7Disclosures, Insiders and Big Money; A listing usually with no new shares sold and no underwriter book; RelatedQuiet period Direct or indirect (D or I)Direct token; Taught inGhostWire Ch.15
Direct or indirect (D or I)#: Ch. 7Disclosures, Insiders and Big Money; Whether shares are held in the insider’s own name or through a trust, family entity or other vehicle; RelatedDirect token Acquired or disposed (A or D)Direct listing; Taught inGhostWire Ch.3
Direct token#: Ch. 7Disclosures, Insiders and Big Money; The coin itself, held in a wallet or on an exchange; RelatedDirect or indirect (D or I)Direct listing Bridge and wrapped token; Taught inGhostWire Ch.12
Discount rate#: Ch. 6Rates, Fed, Macro and Forex; The rate on loans from the Fed’s own lending window to banks; RelatedDiscount rate (r)Yield to maturity (YTM)Federal funds target range; Taught inGhostWire Ch.4
Discount rate (r)#: Ch. 5Risk, Sizing and Hedging; The annual return required to accept the risk of the cash flows; RelatedDiscount rate Yield to maturity (YTM)Terminal value (TV); Taught inAdvanced Ch.2
Discretionary account#: Ch. 7Disclosures, Insiders and Big Money; A managed account where an adviser chooses the trades; RelatedPeriodic transaction report (PTR)Transaction date STOCK Act; Taught inGhostWire Ch.2 GhostWire Ch.12
Display and non-display use#: Ch. 1Market Structure and Order Flow; Display means a person reads the data on a screen; non-display means software uses it; RelatedProfessional and non-professional Level 1 and depth Consolidated tape; Taught inGhostWire Ch.19
Dissent#: Ch. 6Rates, Fed, Macro and Forex; A vote against the majority decision; RelatedDiscount rate SOFR Basis point (bp); Taught inGhostWire Ch.4
Divergence#: Ch. 1Market Structure and Order Flow; Price and an indicator moving in opposite directions over the same window; RelatedLagging indicator Intraday momentum Smart Money Index (SMI); Taught inGhostWire Ch.20
Dollar index (DXY)#: Ch. 6Rates, Fed, Macro and Forex; The dollar measured against a weighted basket of six currencies, more than half of it the euro; RelatedDollar-neutral Rolling correlation Real yield; Taught inGhostWire Ch.28
Dollar-neutral#: Ch. 9Quant, Backtesting and Automation; Equal dollars long one leg and short the other; RelatedDollar index (DXY)Delta-neutral position Neutral rate; Taught inAdvanced Ch.12
Dominance and shelf#: Ch. 4Dealer Flow and Volatility; How far the top strike leads the runner-up; a shelf is a cluster of near-equal strikes; RelatedCluster AM and PM settlement Touch, poke and close beyond; Taught inGhostWire Ch.9
Double counting#: Ch. 7Disclosures, Insiders and Big Money; The same shares counted in more than one filer’s report; RelatedInvestment discretion Snapshot date and filing date Position classification; Taught inGhostWire Ch.10
Downside deviation#: Ch. 2Indicators and Valuation; √(Σ min(excess, 0)² / n), over all n periods; RelatedSortino ratio Sample standard deviation Sharpe ratio; Taught inAdvanced Ch.3 Advanced Ch.7
Drawdown#: Ch. 2Indicators and Valuation; Fall from the highest equity value reached so far, as a percentage of that value; RelatedMaximum drawdown Equity curve Equity; Taught inAdvanced Ch.3 Advanced Ch.16
DV01#: Ch. 6Rates, Fed, Macro and Forex; The dollar change in a position’s value for a one basis point move in yields; RelatedBasis point (bp)Curve spread (2s10s, 3m10y)Modified duration; Taught inGhostWire Ch.14 GhostWire Ch.22

E5 terms

Early assignment#: Ch. 3Options Mechanics and the Greeks; An American-style holder exercises before expiry; RelatedAssignment risk Early-termination penalty Lock-up and early release; Taught inAdvanced Ch.5
Early-termination penalty#: Ch. 1Market Structure and Order Flow; A share of the remaining fees due if the buyer leaves before the term ends; RelatedEarly assignment Lock-up and early release Minimum term; Taught inGhostWire Ch.19
ECN#: Ch. 1Market Structure and Order Flow; An electronic network that matches orders automatically; extended-hours trades run on these; RelatedExtended hours Opening auction Imbalance; Taught inGhostWire Ch.18
EDGAR#: Ch. 1Market Structure and Order Flow; The regulator’s free public database of company filings; RelatedMinimum term Level 1 and depth Fee cap; Taught inGhostWire Ch.19
Effective fed funds rate#: Ch. 6Rates, Fed, Macro and Forex; The overnight rate banks actually pay one another, which sits inside the target range; RelatedEffective federal funds rate (EFFR)30-day fed funds futures Target (minimum acceptable return); Taught inGhostWire Ch.14
Effective federal funds rate (EFFR)#: Ch. 6Rates, Fed, Macro and Forex; The volume-weighted median rate actually paid in overnight federal funds trades; RelatedFederal funds target range Effective fed funds rate 30-day fed funds futures; Taught inGhostWire Ch.4
Effective leverage#: Ch. 6Rates, Fed, Macro and Forex; Notional divided by equity; RelatedEquity Leverage (L)Leverage ratio; Taught inAdvanced Ch.17
Effective number of trials#: Ch. 9Quant, Backtesting and Automation; The count of variants after allowing for how alike they are; RelatedTrial or variant Pivotal trial and primary endpoint Effective fed funds rate; Taught inAdvanced Ch.8
EMA#: Ch. 2Indicators and Valuation; A running average that moves by α times the gap between the new close and the old average; RelatedSmoothing factor (α)Signal line MACD line; Taught inAdvanced Ch.1
Equal risk contribution#: Ch. 10Crypto, DeFi and On-Chain; Weights chosen so every holding supplies the same risk share; RelatedRisk share Relative importance (weight)Risk contribution; Taught inAdvanced Ch.13
Equity#: Ch. 6Rates, Fed, Macro and Forex; Account balance plus floating profit or loss; RelatedEffective leverage Free margin Margin level; Taught inAdvanced Ch.17
Equity curve#: Ch. 2Indicators and Valuation; The compounded value of a unit of capital through time; RelatedEquity Drawdown Bonding curve; Taught inAdvanced Ch.3
Error correction#: Ch. 8Events, Forced Flows and Themes; Spreading information over many physical qubits so errors can be detected and fixed; RelatedQubit Spreading Estimation error; Taught inGhostWire Ch.26
Escalator#: Ch. 1Market Structure and Order Flow; A contractual yearly increase in price; RelatedHurdle return Consolidated tape Terminal; Taught inGhostWire Ch.19
Estimation error#: Ch. 6Rates, Fed, Macro and Forex; The gap between the edge measured in a backtest and the true edge; RelatedAmplitude estimation Standard error of Sharpe Error correction; Taught inAdvanced Ch.16
ETP, ETN, inverse product#: Ch. 4Dealer Flow and Volatility; An exchange-traded product; an ETN is an unsecured note of its issuer; an inverse product aims for the opposite of the daily move; RelatedInverse-volatility weights Rate product Break-even product; Taught inGhostWire Ch.27
Event contract#: Ch. 10Crypto, DeFi and On-Chain; A yes-or-no question that pays $1 if true and $0 if false; RelatedFully collateralized contract Favorite-longshot bias Yes and No; Taught inGhostWire Ch.29
Event premium#: Ch. 3Options Mechanics and the Greeks; Extra implied volatility in an expiry that contains an announcement; RelatedImplied volatility Implied volatility (IV)Term premium; Taught inAdvanced Ch.9
Event variance#: Ch. 4Dealer Flow and Volatility; The part of the front-expiration variance assigned to the report day; RelatedVariance Total variance Minimum-variance ratio (h*); Taught inGhostWire Ch.25 Advanced Ch.11
Excess return#: Ch. 2Indicators and Valuation; GhostWire Ch.2Return above a benchmark such as a broad index fund over the same period; Advanced Ch.3A period return minus the risk-free return for the same period; RelatedSortino ratio Sharpe ratio Downside deviation; Taught inGhostWire Ch.2 Advanced Ch.3
Execution price#: Ch. 10Crypto, DeFi and On-Chain; Amount paid divided by amount received; RelatedPrice impact Pool turnover Swap fee; Taught inAdvanced Ch.14
Exit liquidity#: Ch. 10Crypto, DeFi and On-Chain; Slang for the late buyers that insiders need in order to sell; RelatedLiquidity pool and depth Implied exit multiple Liquidity; Taught inGhostWire Ch.21
Expectancy#: Ch. 6Rates, Fed, Macro and Forex; Average result per unit risked, p×b − q; RelatedStake units (N)Kelly fraction (f*)Log growth rate g(f); Taught inAdvanced Ch.16
Expected maximum#: Ch. 9Quant, Backtesting and Automation; The average value of the largest of N independent draws; RelatedExpected shortfall Maximum drawdown Maximum loss; Taught inAdvanced Ch.8
Expected shortfall#: Ch. 3Options Mechanics and the Greeks; The average loss across the periods at or beyond the VaR threshold; RelatedValue at Risk (VaR)Expected maximum Broken wing; Taught inAdvanced Ch.7
Expedited programs#: Ch. 8Events, Forced Flows and Themes; Fast Track, Breakthrough Therapy, Priority Review and Accelerated Approval; RelatedClass 1 and Class 2 resubmission Pivotal trial and primary endpoint Binary event and single-asset company; Taught inGhostWire Ch.7
Extended hours#: Ch. 1Market Structure and Order Flow; Trading outside the 09:30 to 16:00 ET (08:30 to 15:00 CT) regular session, split into pre-market, after-hours and, at some brokers, overnight; RelatedECN Gigawatt and terawatt-hour Opening range; Taught inGhostWire Ch.18
Extrinsic value and ex-dividend date#: Ch. 3Options Mechanics and the Greeks; Price above intrinsic value; the first day a buyer misses the next dividend; RelatedIntrinsic and extrinsic value Put-call parity Synthetic stock; Taught inAdvanced Ch.5

F3 terms

Fail to deliver (FTD)#: Ch. 1Market Structure and Order Flow; A trade whose shares did not arrive by the settlement date; the published figure is the aggregate balance as of each date; RelatedSettlement date Nowcast Reg SHO threshold list; Taught inGhostWire Ch.16
Fallen angel#: Ch. 6Rates, Fed, Macro and Forex; A bond downgraded from investment grade to high yield; RelatedInvestment grade and high yield Carry New-issue concession and order book; Taught inGhostWire Ch.23
False-report rate#: Ch. 6Rates, Fed, Macro and Forex; How often a source says a move is live when it does not happen; RelatedImplied probability 30-day fed funds futures Repo and reverse repo; Taught inGhostWire Ch.14
Family-wise error#: Ch. 9Quant, Backtesting and Automation; The chance that at least one of N tests passes by luck alone; RelatedBonferroni cutoff Standard error of Sharpe t-statistic; Taught inAdvanced Ch.8
Fat tails#: Ch. 10Crypto, DeFi and On-Chain; Return distributions where extreme moves occur more often than a normal curve implies; RelatedBid-to-cover, tail, dealer takedown Volatility (σ)Risk contribution; Taught inAdvanced Ch.13
Favorite-longshot bias#: Ch. 10Crypto, DeFi and On-Chain; Long shots priced above their true frequency and favorites below; RelatedEvent contract Calibration Issuer-native token; Taught inGhostWire Ch.29
Federal funds target range#: Ch. 6Rates, Fed, Macro and Forex; The band, 25 basis points wide, that the FOMC aims for in overnight bank lending; RelatedBasis point (bp)Effective federal funds rate (EFFR)Effective fed funds rate; Taught inGhostWire Ch.4
Fee breakeven#: Ch. 10Crypto, DeFi and On-Chain; The fees needed to offset the shortfall against holding; RelatedImpermanent loss Breakeven Breakeven inflation; Taught inAdvanced Ch.14
Fee cap#: Ch. 1Market Structure and Order Flow; A ceiling on what a large firm pays per month for a data product; RelatedEDGAR Minimum term Hurdle return; Taught inGhostWire Ch.19
Feedback gain (k)#: Ch. 4Dealer Flow and Volatility; Hedge flow per 1% move divided by depth, with a sign: positive when dealers trade with the move; RelatedMarket maker (dealer)Hedge Long gamma and short gamma; Taught inGhostWire Ch.8
Filing date#: Ch. 7Disclosures, Insiders and Big Money; The day the report was submitted to the House or Senate records office; RelatedLag Filing date and publication date Snapshot date and filing date; Taught inGhostWire Ch.2
Filing date and publication date#: Ch. 7Disclosures, Insiders and Big Money; When the report was submitted, and when it appeared in the searchable public record; RelatedFiling date Snapshot date and filing date Transaction date; Taught inGhostWire Ch.12
Fill assumption#: Ch. 9Quant, Backtesting and Automation; The price at which a backtest assumes each leg trades; RelatedGap fill Leg Standard error of Sharpe; Taught inAdvanced Ch.8
Financing leg#: Ch. 7Disclosures, Insiders and Big Money; Interest on the notional at a benchmark rate plus a spread, paid to the dealer; RelatedMarket maker (dealer)Notional Circular financing; Taught inGhostWire Ch.13
Flash loan#: Ch. 10Crypto, DeFi and On-Chain; An uncollateralized loan that must be borrowed and repaid within one transaction; RelatedLeverage (L)Carry (cash-and-carry)Index price; Taught inAdvanced Ch.15
Float#: Ch. 7Disclosures, Insiders and Big Money; Shares actually available to trade; RelatedDirect listing Greenshoe (overallotment option)Stabilization; Taught inGhostWire Ch.15
Floor#: Ch. 5Risk, Sizing and Hedging; The move down to the put strike minus the premium paid, as a percentage of value; RelatedPremium Cap Roll and premium drag; Taught inAdvanced Ch.4
FOMC and blackout period#: Ch. 6Rates, Fed, Macro and Forex; The committee that sets the policy rate, and the stretch before a meeting when officials stay out of public policy comment; RelatedBlackout period Buyback blackout Meeting-month stub; Taught inGhostWire Ch.14
Forced flow#: Ch. 8Events, Forced Flows and Themes; A trade made because a mandate, model or date requires it, not because of a view on the price; RelatedCrowding Leveraged ETF reset Quarterly expiration; Taught inGhostWire Ch.24
Form 13F#: Ch. 4Dealer Flow and Volatility; A quarterly public list of long positions in qualifying securities, as of the quarter-end date, filed within 45 days; RelatedForm 144 Form 3, Form 4, Form 5 Dealer convention; Taught inGhostWire Ch.17
Form 144#: Ch. 7Disclosures, Insiders and Big Money; A notice of intent to sell restricted or control stock, filed when the sale order is placed; RelatedForm 3, Form 4, Form 5 Form 13F Table I and Table II; Taught inGhostWire Ch.3
Form 3, Form 4, Form 5#: Ch. 7Disclosures, Insiders and Big Money; Form 3 is the initial holdings statement, Form 4 reports each change, Form 5 sweeps up anything not reported earlier; RelatedForm 144 Securities owned following Form 13F; Taught inGhostWire Ch.3
Forward guidance#: Ch. 6Rates, Fed, Macro and Forex; Statements about the likely future course of policy; RelatedGuidance Forward volatility Walk-forward efficiency; Taught inGhostWire Ch.4
Forward volatility#: Ch. 3Options Mechanics and the Greeks; The volatility implied for the span between the two expiries; RelatedForward guidance Walk-forward efficiency Total variance; Taught inAdvanced Ch.9
Foundry and packaging#: Ch. 8Events, Forced Flows and Themes; Firms that fabricate and assemble chips designed by others; RelatedAccelerator Capex Hyperscaler; Taught inGhostWire Ch.30
FR 2004 series#: Ch. 6Rates, Fed, Macro and Forex; The weekly dealer positions and financing release, published Thursdays near 16:15 ET (15:15 CT), broken out by maturity bucket; RelatedMarket maker (dealer)Primary dealer Effective fed funds rate; Taught inGhostWire Ch.14
Fractional Kelly#: Ch. 6Rates, Fed, Macro and Forex; A fixed share of f*, such as one half or one quarter; RelatedKelly fraction (f*)Win probability (p)Estimation error; Taught inAdvanced Ch.16
Free cash flow#: Ch. 8Events, Forced Flows and Themes; Operating cash flow minus capex; RelatedFree cash flow (FCF)Capex Free margin; Taught inGhostWire Ch.30
Free cash flow (FCF)#: Ch. 5Risk, Sizing and Hedging; Cash left after operating costs, taxes and the investment needed to sustain the business; RelatedFree cash flow Implied exit multiple Free margin; Taught inAdvanced Ch.2
Free margin#: Ch. 6Rates, Fed, Macro and Forex; Equity minus used margin; RelatedUsed margin Equity Free cash flow; Taught inAdvanced Ch.17
Fully collateralized contract#: Ch. 10Crypto, DeFi and On-Chain; Money for the full $1 payout is held until resolution; RelatedEvent contract Basic and fully diluted shares Resolution source; Taught inGhostWire Ch.29
Funding rate#: Ch. 10Crypto, DeFi and On-Chain; A periodic payment between longs and shorts, set as a rate on position notional; RelatedFunding rate and open interest Notional Carry (cash-and-carry); Taught inAdvanced Ch.15
Funding rate and open interest#: Ch. 1Market Structure and Order Flow; A periodic payment between longs and shorts of a perpetual crypto contract, and the number of contracts outstanding; RelatedFunding rate Open interest Open interest and volume; Taught inGhostWire Ch.18

G2 terms

Gamma#: Ch. 4Dealer Flow and Volatility; How fast delta changes per 1.00 move in the stock; RelatedDelta Gamma scalping Call wall and put wall; Taught inGhostWire Ch.5 GhostWire Ch.8 GhostWire Ch.17 Advanced Ch.6
Gamma flip and regime#: Ch. 4Dealer Flow and Volatility; The spot price where net GEX crosses zero, and the positive or negative side price is trading on; RelatedNet GEX Gamma flip (zero-gamma level)Regime and dominant driver; Taught inGhostWire Ch.9
Gamma flip (zero-gamma level)#: Ch. 4Dealer Flow and Volatility; The spot price where net GEX changes sign; RelatedNet GEX Gamma flip and regime Gamma; Taught inGhostWire Ch.8
Gamma P&L#: Ch. 3Options Mechanics and the Greeks; 0.5 × Γ × (stock move)², earned whichever way the stock moves; RelatedBreak-even move Gamma scalping Long and short gamma; Taught inAdvanced Ch.6
Gamma scalping#: Ch. 3Options Mechanics and the Greeks; Re-hedging a long-gamma position to bank the curvature; RelatedGamma Long and short gamma Gamma P&L; Taught inAdvanced Ch.6
Gamma squeeze#: Ch. 4Dealer Flow and Volatility; A rise that forces dealers short calls to buy stock, which lifts the price further; RelatedMarket maker (dealer)Gamma flip and regime Call wall; Taught inGhostWire Ch.9
Gap#: Ch. 1Market Structure and Order Flow; GhostWire Ch.18The open minus the prior close, shown in dollars, percent or ATR units; GhostWire Ch.25A move in price with no trading in between, such as from the close to the next open; RelatedATR Gap fill Extended hours; Taught inGhostWire Ch.18 GhostWire Ch.25
Gap fill#: Ch. 1Market Structure and Order Flow; Price returning to the prior close after a gap; RelatedFill assumption Gap Common, breakaway, runaway and exhaustion gaps; Taught inGhostWire Ch.18
Gigawatt and terawatt-hour#: Ch. 8Events, Forced Flows and Themes; GW is power, a rate; TWh is energy, power multiplied by time; RelatedExtended hours Free cash flow Interconnection queue; Taught inGhostWire Ch.30
Gordon growth formula#: Ch. 5Risk, Sizing and Hedging; TV = FCF_next / (r − g); RelatedTerminal growth rate (g)Growth and inflation quadrants Log growth rate g(f); Taught inAdvanced Ch.2
Graduation#: Ch. 10Crypto, DeFi and On-Chain; The move of the pool to a regular exchange once the curve completes; RelatedBonding curve Virtual reserves Constant-product invariant; Taught inGhostWire Ch.21
Greenshoe (overallotment option)#: Ch. 7Disclosures, Insiders and Big Money; An option letting the underwriters sell up to 15% more shares than the base deal, usually exercisable for about 30 days; RelatedGross spread Direct listing Quiet period; Taught inGhostWire Ch.15
Gross and net exposure#: Ch. 7Disclosures, Insiders and Big Money; Total long plus short notional, and their difference; RelatedNotional Total return leg Gross edge; Taught inGhostWire Ch.13
Gross edge#: Ch. 9Quant, Backtesting and Automation; Rate product minus 1; RelatedRate product Gross and net exposure Gross margin; Taught inAdvanced Ch.12
Gross margin#: Ch. 8Events, Forced Flows and Themes; Revenue minus the direct cost of sales, as a percent of revenue; RelatedGross and net exposure Gross edge Gross spread; Taught inGhostWire Ch.25 GhostWire Ch.30
Gross spread#: Ch. 7Disclosures, Insiders and Big Money; The underwriters’ fee, a share of the proceeds; RelatedGross and net exposure Gross edge Gross margin; Taught inGhostWire Ch.15
Growth and inflation quadrants#: Ch. 6Rates, Fed, Macro and Forex; The four combinations of growth rising or falling and inflation rising or falling; RelatedHeadline and core inflation Breakeven inflation Gordon growth formula; Taught inGhostWire Ch.28
Guidance#: Ch. 8Events, Forced Flows and Themes; The company’s own forecast for coming periods; RelatedBeat and raise Forward guidance Adjusted (non-GAAP) earnings; Taught inGhostWire Ch.25

H2 terms

Haircut#: Ch. 9Quant, Backtesting and Automation; A deliberate reduction applied to a backtested figure; RelatedRepo and haircut Bonferroni cutoff Effective number of trials; Taught inAdvanced Ch.8
Half-life#: Ch. 2Indicators and Valuation; Bars for an old close to lose half its weight: ln 0.5 / ln(1 − α); RelatedRelative importance (weight)Useful life and depreciation Half-spread; Taught inAdvanced Ch.1
Half-spread#: Ch. 9Quant, Backtesting and Automation; Half the gap between the bid and the ask; RelatedHalf-life Walk-forward efficiency Standard error of Sharpe; Taught inAdvanced Ch.8
Harvest now, decrypt later#: Ch. 8Events, Forced Flows and Themes; Copying encrypted data today to break it when a capable machine exists; RelatedError correction Post-quantum cryptography Interference; Taught inGhostWire Ch.26
Hawkish and dovish#: Ch. 6Rates, Fed, Macro and Forex; Leaning toward tighter policy, or toward easier policy; RelatedForward guidance Real policy rate Summary of Economic Projections (dot plot); Taught inGhostWire Ch.4
HBM#: Ch. 8Events, Forced Flows and Themes; High-bandwidth memory stacked next to the accelerator; RelatedAccelerator Bandwidth Foundry and packaging; Taught inGhostWire Ch.30
Headline and core#: Ch. 1Market Structure and Order Flow; All items, and all items less food and energy; RelatedHeadline and core inflation Core and supercore Headline and delta-adjusted notional; Taught inGhostWire Ch.16
Headline and core inflation#: Ch. 6Rates, Fed, Macro and Forex; Headline counts everything; core leaves out food and energy; RelatedHeadline and core Growth and inflation quadrants Breakeven inflation; Taught inGhostWire Ch.28
Headline and delta-adjusted notional#: Ch. 4Dealer Flow and Volatility; Contracts × 100 × underlying price, versus the same figure weighted by delta; RelatedDelta Delta-adjusted notional Delta hedge; Taught inGhostWire Ch.17
Hedge#: Ch. 7Disclosures, Insiders and Big Money; In a total return swap, the shares the dealer buys so that it can pay the total return leg; RelatedMarket maker (dealer)Total return leg Total return swap; Taught inGhostWire Ch.13
Hedge effectiveness#: Ch. 5Risk, Sizing and Hedging; ρ², the fraction of portfolio variance the best hedge removes; RelatedVariance Hedge ratio (h)Hedge; Taught inAdvanced Ch.4
Hedge ratio (beta)#: Ch. 9Quant, Backtesting and Automation; How many dollars of the second asset offset the first; RelatedHedge ratio (h)Spread (pair)Dollar-neutral; Taught inAdvanced Ch.12
Hedge ratio (h)#: Ch. 5Risk, Sizing and Hedging; Dollars of hedge notional held per dollar of portfolio value; RelatedHedge ratio (beta)Hedge effectiveness Hedge; Taught inAdvanced Ch.4
Histogram#: Ch. 2Indicators and Valuation; MACD line minus signal line; RelatedMACD line Signal line Zero-line cross; Taught inAdvanced Ch.1
Hot and cold wallet#: Ch. 10Crypto, DeFi and On-Chain; Hot: connected, used for daily withdrawals. Cold: offline, used for the bulk of customer holdings; RelatedCustody wallet Address and wallet Deposit address and sweep; Taught inGhostWire Ch.11
Hurdle return#: Ch. 1Market Structure and Order Flow; The extra yearly return needed just to cover a fixed cost; RelatedEscalator Minimum term Fee cap; Taught inGhostWire Ch.19
Hybrid and quantum-inspired#: Ch. 8Events, Forced Flows and Themes; Hybrid: a classical program passes one subproblem to a quantum device. Quantum-inspired: a classical algorithm that borrows quantum mathematics; RelatedQuantum advantage Post-quantum cryptography Baseline and ablation; Taught inGhostWire Ch.26
Hyperscaler#: Ch. 8Events, Forced Flows and Themes; One of the very large cloud operators that buy most AI hardware; RelatedUseful life and depreciation Foundry and packaging Backlog or remaining performance obligations; Taught inGhostWire Ch.30

I3 terms

Imbalance#: Ch. 1Market Structure and Order Flow; The unmatched shares left on one side at the auction price; RelatedOrder book imbalance Opening auction Gap; Taught inGhostWire Ch.18
Impermanent loss#: Ch. 10Crypto, DeFi and On-Chain; The shortfall of an LP position versus holding the same tokens, before fees; RelatedFee breakeven Reserve Pool spot price; Taught inAdvanced Ch.14
Implied event move#: Ch. 4Dealer Flow and Volatility; The one-standard-deviation size of the event, as priced; RelatedOne-standard-deviation move Realized volatility IV percentile; Taught inAdvanced Ch.11
Implied exit multiple#: Ch. 5Risk, Sizing and Hedging; TV divided by the last forecast FCF; RelatedFree cash flow (FCF)Exit liquidity Multiple testing (data snooping); Taught inAdvanced Ch.2
Implied move#: Ch. 8Events, Forced Flows and Themes; The expected size of the move priced by the options, usually the straddle divided by the stock price; RelatedStraddle ATM straddle and implied move Priced in; Taught inGhostWire Ch.25
Implied probability#: Ch. 6Rates, Fed, Macro and Forex; The chance of a rate change that makes the expected rate equal the one in the price; RelatedModel probability Touch probability Win probability (p); Taught inGhostWire Ch.14
Implied turnover#: Ch. 7Disclosures, Insiders and Big Money; The lower of purchases and sales found by comparing two filings, over average value; RelatedPool turnover 13F-HR, 13F-NT and amendments Information table; Taught inGhostWire Ch.10
Implied volatility#: Ch. 4Dealer Flow and Volatility; The annualized move that option prices imply, backed out of option premiums; RelatedImplied volatility (IV)Term structure VVIX; Taught inGhostWire Ch.27
Implied volatility and a volatility point#: Ch. 4Dealer Flow and Volatility; The volatility an option’s price implies; one point is one percentage point, such as 20% to 19%; RelatedBasis point (bp)Vol point Special Opening Quotation; Taught inGhostWire Ch.17
Implied volatility (IV)#: Ch. 4Dealer Flow and Volatility; The annualized volatility that makes a model price match the option price; RelatedImplied volatility Term structure IV crush; Taught inAdvanced Ch.11
Implied volatility (IV) and IV crush#: Ch. 8Events, Forced Flows and Themes; The volatility priced into options, and its fall once the uncertainty ends; RelatedIV crush Implied move Priced in; Taught inGhostWire Ch.25
Index level and base period#: Ch. 6Rates, Fed, Macro and Forex; The index is scaled to 100 for 1982 to 1984; a level of 320 means prices are 3.2 times that base; RelatedSurprise Whisper number Month over month (MoM); Taught inGhostWire Ch.6
Index price#: Ch. 10Crypto, DeFi and On-Chain; A reference price built from spot markets; RelatedMark price Funding rate Delta-neutral position; Taught inAdvanced Ch.15
Inflow, outflow and netflow#: Ch. 10Crypto, DeFi and On-Chain; Coins moving into exchange wallets, out of them, and the difference; RelatedAddress and wallet Deposit address and sweep Coin days destroyed; Taught inGhostWire Ch.11
Information table#: Ch. 7Disclosures, Insiders and Big Money; The list of positions inside the filing, one row per security and class; RelatedSensitivity table Table I and Table II CUSIP; Taught inGhostWire Ch.10
Initial and maintenance margin#: Ch. 5Risk, Sizing and Hedging; The deposit to open a futures position, and the balance below which more must be added; RelatedInitial margin Maintenance requirement and margin call Maintenance margin; Taught inAdvanced Ch.2
Initial margin#: Ch. 7Disclosures, Insiders and Big Money; Collateral posted at the start, as a share of notional; RelatedInitial and maintenance margin Notional Maintenance requirement and margin call; Taught inGhostWire Ch.13 Advanced Ch.15
Interconnection queue#: Ch. 8Events, Forced Flows and Themes; The waiting line to connect a new load or generator to the grid; RelatedCapex Gigawatt and terawatt-hour Useful life and depreciation; Taught inGhostWire Ch.30
Interest coverage#: Ch. 6Rates, Fed, Macro and Forex; Operating earnings divided by interest expense; RelatedNon-accrual and PIK Funding rate and open interest Open interest; Taught inGhostWire Ch.23
Interference#: Ch. 8Events, Forced Flows and Themes; Amplitudes along different routes add or cancel; RelatedAmplitude estimation Superposition and amplitude Quantum advantage; Taught inGhostWire Ch.26
Internal transfer#: Ch. 10Crypto, DeFi and On-Chain; A move between two wallets of the same entity; RelatedLabel and entity Inflow, outflow and netflow Hot and cold wallet; Taught inGhostWire Ch.11
Intraday momentum#: Ch. 1Market Structure and Order Flow; The tendency, found in one study, for the first half-hour return to predict the last half-hour return in the same direction; RelatedSmart Money Index (SMI)Divergence Closing window; Taught inGhostWire Ch.20
Intrinsic and extrinsic value#: Ch. 1Market Structure and Order Flow; Intrinsic is what exercising would be worth now; extrinsic (time value) is the rest of the price; RelatedExtrinsic value and ex-dividend date Sweep, block and complex order Delta-adjusted notional; Taught inGhostWire Ch.5
Inverse-volatility weights#: Ch. 10Crypto, DeFi and On-Chain; Weights proportional to 1 / σ; RelatedRelative importance (weight)Weight (w)ETP, ETN, inverse product; Taught inAdvanced Ch.13
Inverted curve#: Ch. 3Options Mechanics and the Greeks; Shorter-dated implied volatility above longer-dated; RelatedImplied volatility Implied volatility (IV)Upward curve; Taught inAdvanced Ch.9
Investment discretion#: Ch. 7Disclosures, Insiders and Big Money; Whether the filer decides alone (sole), jointly (shared) or another manager decides; RelatedInvestment grade and high yield 13F-HR, 13F-NT and amendments Double counting; Taught inGhostWire Ch.10
Investment grade and high yield#: Ch. 6Rates, Fed, Macro and Forex; Rated BBB-/Baa3 or higher, versus below that line; RelatedInvestment discretion Fallen angel Nominal yield; Taught inGhostWire Ch.23
IORB and ON RRP#: Ch. 6Rates, Fed, Macro and Forex; Interest on reserve balances paid to banks, and the overnight reverse repo rate paid to eligible counterparties; RelatedSOFR and IORB Reserve Federal funds target range; Taught inGhostWire Ch.4
Isolated margin#: Ch. 10Crypto, DeFi and On-Chain; Only the margin assigned to the position is at risk; RelatedLeverage (L)Cross margin Perpetual future; Taught inAdvanced Ch.15
Issuer-native token#: Ch. 10Crypto, DeFi and On-Chain; The company’s own share register kept on a blockchain; RelatedWrapped token Synthetic or perpetual token Authorized participant; Taught inGhostWire Ch.29
IV crush#: Ch. 4Dealer Flow and Volatility; The sharp fall in implied volatility once the outcome is known; RelatedImplied volatility (IV)Implied volatility Implied volatility (IV) and IV crush; Taught inGhostWire Ch.7 GhostWire Ch.17 Advanced Ch.11
IV percentile#: Ch. 4Dealer Flow and Volatility; Share of past readings that were below today’s; RelatedIV rank Implied event move At-the-money straddle; Taught inAdvanced Ch.11
IV rank#: Ch. 4Dealer Flow and Volatility; Where today’s IV sits between the period low and high; RelatedIV percentile Implied volatility (IV)Base volatility; Taught inAdvanced Ch.11

L6 terms

Label#: Ch. 8Events, Forced Flows and Themes; The approved indication, population, dosing and warnings, including any boxed warning; RelatedComplete Response Letter (CRL)p-value NDA and BLA; Taught inGhostWire Ch.7
Label and entity#: Ch. 10Crypto, DeFi and On-Chain; A tracker’s attribution of a cluster of addresses to an exchange, fund, miner or service; RelatedCluster Address and wallet Internal transfer; Taught inGhostWire Ch.11
Lag#: Ch. 7Disclosures, Insiders and Big Money; Days from the transaction date to the filing date, or to publication; RelatedFiling date Transaction date Periodic transaction report (PTR); Taught inGhostWire Ch.2
Lagging indicator#: Ch. 1Market Structure and Order Flow; A measure that confirms a move only after it is under way rather than at it; RelatedDivergence Contrarian reading Cumulative line; Taught inGhostWire Ch.20
Leg#: Ch. 6Rates, Fed, Macro and Forex; One trade inside a multi-part trade, such as an arbitrage loop; RelatedDollar-neutral Fill assumption Hedge; Taught inAdvanced Ch.17
Leg risk#: Ch. 9Quant, Backtesting and Automation; The chance that prices move between one leg filling and the next; RelatedTouch probability Leg Per-leg cost; Taught inAdvanced Ch.12
Level 1 and depth#: Ch. 1Market Structure and Order Flow; Level 1 is the best bid, best ask and last sale; depth shows orders beyond the best price; RelatedEDGAR Display and non-display use Opportunity cost; Taught inGhostWire Ch.19
Leverage (L)#: Ch. 10Crypto, DeFi and On-Chain; Position notional divided by the margin posted; RelatedLeveraged ETF reset Leverage ratio Effective leverage; Taught inAdvanced Ch.15
Leverage ratio#: Ch. 5Risk, Sizing and Hedging; Notional value / margin deposit; RelatedNotional value Leverage (L)Effective leverage; Taught inAdvanced Ch.2
Leveraged ETF reset#: Ch. 8Events, Forced Flows and Themes; The daily trade that restores a fund to its target leverage at the close; RelatedLeverage (L)Target (minimum acceptable return)Rebalancing; Taught inGhostWire Ch.24
Lifting the offer, hitting the bid#: Ch. 1Market Structure and Order Flow; Buying at the ask, selling at the bid; RelatedATS or dark pool Time and sales Lit market; Taught inGhostWire Ch.1
Likelihood ratio#: Ch. 6Rates, Fed, Macro and Forex; How many times more likely a report is when the event is coming than when it is not; RelatedFR 2004 series FOMC and blackout period 30-day fed funds futures; Taught inGhostWire Ch.14
Limit order and market order#: Ch. 1Market Structure and Order Flow; A limit order sets the worst acceptable price; a market order accepts whatever the book offers; RelatedLoss limit Pre-trade limits and kill switch Opening auction; Taught inGhostWire Ch.18
Liquidation cascade#: Ch. 10Crypto, DeFi and On-Chain; Forced closes that push the price further and trigger more forced closes; RelatedLiquidation price Mark price Liquidation preference; Taught inAdvanced Ch.15
Liquidation preference#: Ch. 7Disclosures, Insiders and Big Money; A holder’s right to be paid back first in a sale before common holders share the rest; RelatedLiquidation cascade Liquidation price Preferred and common stock; Taught inGhostWire Ch.15
Liquidation price#: Ch. 9Quant, Backtesting and Automation; The price at which equity equals maintenance margin; RelatedMaintenance margin Liquidation cascade Liquidation preference; Taught inAdvanced Ch.12 Advanced Ch.15
Liquidity#: Ch. 6Rates, Fed, Macro and Forex; How cheap and plentiful money is for buying risk; RelatedRegime and dominant driver Exit liquidity Liquidity pool and depth; Taught inGhostWire Ch.28
Liquidity pool and depth#: Ch. 10Crypto, DeFi and On-Chain; The SOL and tokens that traders swap against, and how much of them the pool holds; RelatedExit liquidity Liquidity provider (LP) share ATS or dark pool; Taught inGhostWire Ch.21
Liquidity provider (LP) share#: Ch. 10Crypto, DeFi and On-Chain; The fraction of the pool a depositor owns; RelatedLiquidity pool and depth Exit liquidity Liquidity; Taught inAdvanced Ch.14
Lit market#: Ch. 1Market Structure and Order Flow; An exchange that shows its orders and quotes publicly before they trade; RelatedConsolidated tape and SIP Aggressor and tick test Price improvement; Taught inGhostWire Ch.1
Lock-up and early release#: Ch. 7Disclosures, Insiders and Big Money; A contractual ban on insider sales, sometimes with a staged release tied to events such as earnings; RelatedEarly assignment Early-termination penalty Liquidation preference; Taught inGhostWire Ch.15
Log growth rate g(f)#: Ch. 6Rates, Fed, Macro and Forex; The average of ln(equity multiplier) per trade; RelatedKelly fraction (f*)Gordon growth formula Growth and inflation quadrants; Taught inAdvanced Ch.16
Long and short gamma#: Ch. 3Options Mechanics and the Greeks; Owning or owing curvature; RelatedGamma scalping Gamma P&L Gamma; Taught inAdvanced Ch.6
Long gamma and short gamma#: Ch. 4Dealer Flow and Volatility; A dealer long options gains from movement and hedges against it; a dealer short options hedges with it; RelatedMarket maker (dealer)Gamma flip (zero-gamma level)Hedge; Taught inGhostWire Ch.8
Long-duration asset#: Ch. 6Rates, Fed, Macro and Forex; An asset whose value rests on cash flows far in the future, such as a growth stock; RelatedModified duration Spread duration Regime and dominant driver; Taught inGhostWire Ch.28
Lookback window#: Ch. 8Events, Forced Flows and Themes; The number of past days used in the calculation, such as 20; RelatedRealized volatility Crowding Quarterly expiration; Taught inGhostWire Ch.24
Loop product#: Ch. 6Rates, Fed, Macro and Forex; Starting amount multiplied by every conversion rate around the loop; RelatedTriangular arbitrage Rate product Break-even product; Taught inAdvanced Ch.17
Loss limit#: Ch. 3Options Mechanics and the Greeks; Pre-set loss at which the spread is closed; RelatedLimit order and market order Pre-trade limits and kill switch Profit target; Taught inAdvanced Ch.10
LULD#: Ch. 1Market Structure and Order Flow; Limit Up-Limit Down, the price-band rule that pauses a stock after a fast move; it has long applied only in the regular session; RelatedExtended hours Opening range VWAP and ADX; Taught inGhostWire Ch.18

M5 terms

MACD line#: Ch. 2Indicators and Valuation; Fast EMA minus slow EMA; RelatedZero-line cross Histogram Signal line; Taught inAdvanced Ch.1
Maintenance margin#: Ch. 9Quant, Backtesting and Automation; Minimum equity as a share of position value; RelatedLiquidation price Maintenance requirement and margin call Initial and maintenance margin; Taught inAdvanced Ch.12 Advanced Ch.15
Maintenance requirement and margin call#: Ch. 7Disclosures, Insiders and Big Money; The minimum equity as a share of current notional, and the demand for collateral when equity falls below it; RelatedNotional Initial and maintenance margin Maintenance margin; Taught inGhostWire Ch.13
Maker and taker#: Ch. 10Crypto, DeFi and On-Chain; A maker rests an order; a taker trades against one that is resting; RelatedAutomated market maker (AMM)Market maker (dealer)Bid, ask and order book; Taught inGhostWire Ch.29
Margin call#: Ch. 6Rates, Fed, Macro and Forex; A warning or demand when margin level falls to a set threshold; RelatedMargin level Maintenance requirement and margin call Used margin; Taught inAdvanced Ch.17
Margin level#: Ch. 6Rates, Fed, Macro and Forex; Equity divided by used margin, as a percentage; RelatedMargin call Used margin Stop-out; Taught inAdvanced Ch.17
Mark price#: Ch. 10Crypto, DeFi and On-Chain; The price a venue uses to value positions and trigger liquidations; RelatedLiquidation cascade Cross margin Index price; Taught inAdvanced Ch.15
Market maker (dealer)#: Ch. 4Dealer Flow and Volatility; A firm that quotes options to everyone and hedges what it is left holding; RelatedHedge Long gamma and short gamma Feedback gain (k); Taught inGhostWire Ch.8
Marketable order#: Ch. 1Market Structure and Order Flow; An order that can trade at once: a market order, or a limit order at or through the opposite quote; RelatedResting order Consolidated tape and SIP Lit market; Taught inGhostWire Ch.1
Market-implied path#: Ch. 6Rates, Fed, Macro and Forex; The sequence of policy rates that futures prices imply for coming meetings; RelatedBlackout period Forward guidance Minutes; Taught inGhostWire Ch.4
Maturity wall#: Ch. 6Rates, Fed, Macro and Forex; Debt that must be refinanced within a short window; RelatedConstant maturity Yield to maturity (YTM)Call wall; Taught inGhostWire Ch.23
Maximum drawdown#: Ch. 2Indicators and Valuation; The largest drawdown over the whole record; RelatedDrawdown Expected maximum Maximum loss; Taught inAdvanced Ch.3
Maximum loss#: Ch. 3Options Mechanics and the Greeks; Worst result at expiration; RelatedReturn on risk Reward-to-risk Maximum profit; Taught inAdvanced Ch.10
Maximum profit#: Ch. 3Options Mechanics and the Greeks; Best result at expiration; RelatedReturn on risk Reward-to-risk Maximum loss; Taught inAdvanced Ch.10
Maximum profit and loss#: Ch. 3Options Mechanics and the Greeks; The bounds fixed by width and net premium; RelatedNet premium (tide)Premium Return on risk; Taught inAdvanced Ch.5
Mean reversion#: Ch. 4Dealer Flow and Volatility; GhostWire Ch.27The tendency of volatility to drift back toward its long-run level; Advanced Ch.12The tendency of a spread to return toward its average; RelatedConstant maturity VIX9D and VIX3M Implied volatility; Taught inGhostWire Ch.27 Advanced Ch.12
Measurement#: Ch. 8Events, Forced Flows and Themes; Reading out the qubits, which returns one definite result per run; RelatedQubit Physical and logical qubit Error correction; Taught inGhostWire Ch.26
Meeting-month stub#: Ch. 6Rates, Fed, Macro and Forex; The days of the month after the decision takes effect; RelatedFOMC and blackout period Repo and reverse repo Likelihood ratio; Taught inGhostWire Ch.14
Mempool#: Ch. 10Crypto, DeFi and On-Chain; The waiting room of announced transactions not yet in a block; RelatedBlock Address and wallet Bridge and wrapped token; Taught inGhostWire Ch.11
Microprice#: Ch. 1Market Structure and Order Flow; The best bid and ask weighted by the opposite side’s size; RelatedBid and ask Depth Dealer hedging; Taught inGhostWire Ch.5
Midpoint#: Ch. 1Market Structure and Order Flow; The price halfway between bid and ask; may fall on a half-cent; RelatedBid and ask Price improvement ATS or dark pool; Taught inGhostWire Ch.1
Minimum term#: Ch. 1Market Structure and Order Flow; The shortest period a contract can run without a penalty; RelatedMinimum-variance ratio (h*)Early-termination penalty EDGAR; Taught inGhostWire Ch.19
Minimum-variance ratio (h*)#: Ch. 5Risk, Sizing and Hedging; ρ × σ_P / σ_H: the ratio that leaves the smallest total volatility; RelatedMinimum term Total variance Event variance; Taught inAdvanced Ch.4
Mint and freeze authority#: Ch. 10Crypto, DeFi and On-Chain; The power to create more tokens or to freeze accounts; RelatedStablecoin mint and burn Virtual reserves Liquidity pool and depth; Taught inGhostWire Ch.21
Minutes#: Ch. 6Rates, Fed, Macro and Forex; The detailed record of the meeting, released three weeks later; RelatedOpening range Opening window Smart Money Flow Index (SMFI); Taught inGhostWire Ch.4
Mirror or copycat portfolio#: Ch. 7Disclosures, Insiders and Big Money; A portfolio built to follow the disclosed trades; RelatedPortfolio volatility Blind trust Periodic transaction report (PTR); Taught inGhostWire Ch.2
Model probability#: Ch. 3Options Mechanics and the Greeks; The chance of an outcome implied by option prices, with no allowance for risk preference; RelatedImplied probability Touch probability Win probability (p); Taught inAdvanced Ch.5
Modified duration#: Ch. 6Rates, Fed, Macro and Forex; Approximate percentage price change for a one percentage point change in yield; RelatedSpread duration Long-duration asset Curve spread (2s10s, 3m10y); Taught inGhostWire Ch.22
Monte Carlo simulation#: Ch. 8Events, Forced Flows and Themes; Estimating an average by sampling many random scenarios; RelatedAmplitude estimation Quantum advantage Interference; Taught inGhostWire Ch.26
Month over month and annualized#: Ch. 1Market Structure and Order Flow; The change from the prior month, and that rate compounded over twelve months; RelatedAnnualized rate Spreading Short interest and days to cover; Taught inGhostWire Ch.16
Month over month (MoM)#: Ch. 6Rates, Fed, Macro and Forex; The percentage change from the previous month; RelatedContribution Year over year (YoY)Annualized rate; Taught inGhostWire Ch.6
Multiple testing (data snooping)#: Ch. 2Indicators and Valuation; Trying many strategies and reporting only the best; RelatedOverfitting and multiple testing Implied exit multiple Required recovery; Taught inAdvanced Ch.3

N4 terms

NDA and BLA#: Ch. 8Events, Forced Flows and Themes; The marketing application filed with the FDA: a New Drug Application for a conventional drug, a Biologics License Application for a biologic; Relatedp-value Advisory committee PDUFA goal date; Taught inGhostWire Ch.7
Net credit or debit#: Ch. 3Options Mechanics and the Greeks; Premium received less premium paid when all legs are opened; RelatedNet debit or credit Premium Credit; Taught inAdvanced Ch.7
Net debit or credit#: Ch. 3Options Mechanics and the Greeks; The cash paid or received when the legs are opened; RelatedNet credit or debit Credit Cumulative credit; Taught inAdvanced Ch.5
Net GEX#: Ch. 4Dealer Flow and Volatility; Dollar gamma per 1% move after counting calls as one sign and puts as the other, using an assumed ownership; RelatedGamma flip (zero-gamma level)Gamma flip and regime Gamma; Taught inGhostWire Ch.8
Net notional#: Ch. 7Disclosures, Insiders and Big Money; Dollars bought minus dollars sold across reported transactions; RelatedSecurities owned following Notional Notional and multiplier; Taught inGhostWire Ch.3
Net position and positioning index#: Ch. 1Market Structure and Order Flow; Long minus short, and where today’s net sits between its low and high over a look-back window; RelatedSpreading Settlement date Fail to deliver (FTD); Taught inGhostWire Ch.16
Net premium (tide)#: Ch. 1Market Structure and Order Flow; Bullish premium minus bearish premium over an interval; RelatedCap Maximum profit and loss Premium; Taught inGhostWire Ch.5
Network effect#: Ch. 1Market Structure and Order Flow; A service whose value rises with the number of others on it; RelatedEarly-termination penalty Seat Minimum term; Taught inGhostWire Ch.19
Neutral rate#: Ch. 6Rates, Fed, Macro and Forex; The policy rate that neither speeds up nor slows the economy; RelatedDelta-neutral position Dollar-neutral Summary of Economic Projections (dot plot); Taught inGhostWire Ch.4
New-issue concession and order book#: Ch. 6Rates, Fed, Macro and Forex; The discount a borrower offers to sell new bonds, and the orders collected, often quoted as a multiple of the bonds on offer; RelatedBid, ask and order book Order book imbalance CDS and CDX; Taught inGhostWire Ch.23
Nominal yield#: Ch. 6Rates, Fed, Macro and Forex; The quoted bond yield, with no adjustment for inflation; RelatedReal yield Breakeven inflation Yield to maturity (YTM); Taught inGhostWire Ch.28
Non-accrual and PIK#: Ch. 6Rates, Fed, Macro and Forex; A loan that has stopped paying interest in cash, and interest paid in added debt instead of cash; RelatedMaturity wall Interest coverage Credit spread; Taught inGhostWire Ch.23
Notification date#: Ch. 7Disclosures, Insiders and Big Money; The day the member (or the person managing the account) learned of the trade; RelatedTransaction date Owner code STOCK Act; Taught inGhostWire Ch.2 GhostWire Ch.12
Notional#: Ch. 7Disclosures, Insiders and Big Money; The reference dollar size on which all payments are computed; RelatedNotional and multiplier Initial margin Maintenance requirement and margin call; Taught inGhostWire Ch.13 Advanced Ch.12
Notional and multiplier#: Ch. 5Risk, Sizing and Hedging; Index level times dollars per point gives the notional of one contract; RelatedNotional Net notional Delta-adjusted notional; Taught inAdvanced Ch.4
Notional value#: Ch. 5Risk, Sizing and Hedging; The full contract value a futures position controls; RelatedLeverage ratio Delta-adjusted notional Headline and delta-adjusted notional; Taught inAdvanced Ch.2
Nowcast#: Ch. 1Market Structure and Order Flow; A model estimate of a number that has not been published yet, refreshed as inputs arrive; RelatedFail to deliver (FTD)Securities lending reporting (SLATE)RMSE; Taught inGhostWire Ch.16

O7 terms

ON RRP and standing repo facility#: Ch. 6Rates, Fed, Macro and Forex; The central bank’s overnight cash-absorbing window, and its overnight cash-lending window; RelatedRepo and reverse repo Repo and haircut Primary dealer; Taught inGhostWire Ch.14
One-standard-deviation move#: Ch. 4Dealer Flow and Volatility; The price change a bell curve with this IV exceeds about one time in three; RelatedPopulation standard deviation Sample standard deviation Implied event move; Taught inAdvanced Ch.11
Open interest#: Ch. 1Market Structure and Order Flow; GhostWire Ch.16The number of contracts outstanding; each has one long and one short side; Advanced Ch.15The total notional of open contracts; RelatedOpen interest and volume Short interest and days to cover Funding rate and open interest; Taught inGhostWire Ch.16 GhostWire Ch.17 Advanced Ch.15
Open interest and volume#: Ch. 4Dealer Flow and Volatility; Open interest counts contracts outstanding at the last clearing; volume counts contracts traded today; RelatedOpen interest Funding rate and open interest Volume and open interest; Taught inGhostWire Ch.8
Opening and closing cross#: Ch. 1Market Structure and Order Flow; Single-price auctions near 09:30 ET (08:30 CT) and 16:00 ET (15:00 CT); RelatedClosing auction Opening auction Closing window; Taught inGhostWire Ch.1
Opening auction#: Ch. 1Market Structure and Order Flow; A single-price match of all queued orders that sets the official opening price at 09:30 ET (08:30 CT); RelatedClosing auction Opening range Opening and closing cross; Taught inGhostWire Ch.18
Opening range#: Ch. 1Market Structure and Order Flow; The high and low of the first few minutes of the regular session, often 15; RelatedOpening auction Minutes Extended hours; Taught inGhostWire Ch.18
Opening window#: Ch. 1Market Structure and Order Flow; The first 30 minutes of trading, 09:30 to 10:00 ET (08:30 to 09:00 CT), assumed to be driven by reaction to overnight news; RelatedMinutes Smart Money Index (SMI)Opening range; Taught inGhostWire Ch.20
Opex#: Ch. 4Dealer Flow and Volatility; Expiration day; monthly equity options expire on the third Friday; RelatedTriple witching and OPEX Pinning Market maker (dealer); Taught inGhostWire Ch.8
Opportunity cost#: Ch. 1Market Structure and Order Flow; What money tied up in an asset could have earned elsewhere; RelatedSeat Level 1 and depth Escalator; Taught inGhostWire Ch.19
Option-adjusted spread (OAS)#: Ch. 6Rates, Fed, Macro and Forex; The spread after the value of embedded options, such as a call right, is removed; RelatedAdjusted (non-GAAP) earnings Carry-adjusted theta Delta-adjusted notional; Taught inGhostWire Ch.23
Order book imbalance#: Ch. 1Market Structure and Order Flow; (bid size − ask size) / (bid size + ask size), from −1 to +1; RelatedImbalance Bid, ask and order book New-issue concession and order book; Taught inGhostWire Ch.5
OTC desk#: Ch. 10Crypto, DeFi and On-Chain; A desk that fills large orders privately and then settles on-chain; RelatedBridge and wrapped token Label and entity Inflow, outflow and netflow; Taught inGhostWire Ch.11
Out-of-sample test#: Ch. 2Indicators and Valuation; Evaluating a model on data not used to design or tune it; RelatedSample standard deviation Required recovery Target (minimum acceptable return); Taught inAdvanced Ch.3 Advanced Ch.14
Overfitting and multiple testing#: Ch. 8Events, Forced Flows and Themes; A strategy picked from many tries looks good by luck; RelatedMultiple testing (data snooping)Implied exit multiple Accelerator; Taught inGhostWire Ch.30
Over-hedge and under-hedge#: Ch. 5Risk, Sizing and Hedging; A ratio above or below the optimum; RelatedHedge effectiveness Hedge ratio (h)Residual risk; Taught inAdvanced Ch.4
Oversubscription (coverage)#: Ch. 7Disclosures, Insiders and Big Money; Shares demanded at a price divided by shares offered; RelatedDirect listing Greenshoe (overallotment option)Basic and fully diluted shares; Taught inGhostWire Ch.15
Owner code#: Ch. 7Disclosures, Insiders and Big Money; A tag on each row for whose account traded: the member, a spouse, a dependent child or a joint account; RelatedTransaction code Shelter and owners’ equivalent rent Notification date; Taught inGhostWire Ch.2 GhostWire Ch.12

P5 terms

Paper value and realizable value#: Ch. 10Crypto, DeFi and On-Chain; Paper value is tokens times the current price; realizable value is what selling them actually returns; RelatedLiquidity pool and depth Constant-product invariant Rug pull and honeypot; Taught inGhostWire Ch.21
Par, discount, premium#: Ch. 6Rates, Fed, Macro and Forex; Price at, below or above 100 per 100 of face value; RelatedPremium or discount Premium or discount to NAV Term premium; Taught inGhostWire Ch.22
Parallel shift#: Ch. 3Options Mechanics and the Greeks; Every expiry’s implied volatility moving by the same number of points; RelatedImplied volatility Implied volatility (IV)Event premium; Taught inAdvanced Ch.9
Parameter drift#: Ch. 9Quant, Backtesting and Automation; How far the best setting moves from one window to the next; RelatedPost-earnings drift Weight drift Trial or variant; Taught inAdvanced Ch.8
Participation rate#: Ch. 8Events, Forced Flows and Themes; The flow as a share of the available volume; RelatedRisk parity Lookback window Rebalancing; Taught inGhostWire Ch.24
Pass-through#: Ch. 6Rates, Fed, Macro and Forex; How much of a cost change reaches the price the consumer pays; RelatedGrowth and inflation quadrants Stagflation Risk-on and risk-off; Taught inGhostWire Ch.28
Payoff at expiration#: Ch. 3Options Mechanics and the Greeks; Profit or loss per share at each final price, found by adding the legs; RelatedPayoff ratio (b)Quarterly expiration Net credit or debit; Taught inAdvanced Ch.7
Payoff ratio (b)#: Ch. 6Rates, Fed, Macro and Forex; Average win divided by average loss; RelatedPayoff at expiration Log growth rate g(f)Expectancy; Taught inAdvanced Ch.16
PDUFA goal date#: Ch. 8Events, Forced Flows and Themes; The date by which the FDA aims to act on an application; RelatedClass 1 and Class 2 resubmission Complete Response Letter (CRL)NDA and BLA; Taught inGhostWire Ch.7
Percent b (%b)#: Ch. 2Indicators and Valuation; (close − lower band) / (upper band − lower band); RelatedBandwidth Histogram Signal line; Taught inAdvanced Ch.1
Periodic transaction report (PTR)#: Ch. 7Disclosures, Insiders and Big Money; The filing that lists individual trades above the reporting threshold, one row per transaction; RelatedTransaction date Transaction type Cluster; Taught inGhostWire Ch.2 GhostWire Ch.12
Per-leg cost#: Ch. 9Quant, Backtesting and Automation; Fee plus spread paid plus slippage on one trade; RelatedSlippage Leg risk Liquidation price; Taught inAdvanced Ch.12
Perpetual future#: Ch. 10Crypto, DeFi and On-Chain; A derivative that tracks an asset’s price and never expires; RelatedSynthetic or perpetual token 30-day fed funds futures VIX future; Taught inAdvanced Ch.15
Physical and logical qubit#: Ch. 8Events, Forced Flows and Themes; A physical qubit is a noisy hardware element. A logical qubit is a reliable one built from many physical qubits; RelatedQubit Error correction Measurement; Taught inGhostWire Ch.26
Pin#: Ch. 3Options Mechanics and the Greeks; GhostWire Ch.9Drift toward a heavy strike into expiration; Advanced Ch.9The underlying finishing at the strike on the front expiration day; RelatedDebit Decay differential Pinning; Taught inGhostWire Ch.9 Advanced Ch.9
Pin risk#: Ch. 3Options Mechanics and the Greeks; The stock closes within cents of a short strike at expiry; RelatedVertical spread Put-call parity Early assignment; Taught inAdvanced Ch.5
Pinning#: Ch. 4Dealer Flow and Volatility; The tendency of a stock to drift toward a heavily traded strike as expiration nears; RelatedOpen interest and volume Opex Feedback gain (k); Taught inGhostWire Ch.8
Pip value#: Ch. 6Rates, Fed, Macro and Forex; Currency value of one pip of movement per lot; RelatedRisk at the stop Expectancy Kelly fraction (f*); Taught inAdvanced Ch.16
Pivotal trial and primary endpoint#: Ch. 8Events, Forced Flows and Themes; The late-stage study meant to support approval, and the one prespecified measure that defines success in it; RelatedPrimary dealer Effective number of trials Trial or variant; Taught inGhostWire Ch.7
Pool spot price#: Ch. 10Crypto, DeFi and On-Chain; Y / X, the price of T in the stable token; RelatedPool turnover Liquidity pool and depth Spot crypto ETF; Taught inAdvanced Ch.14
Pool turnover#: Ch. 10Crypto, DeFi and On-Chain; Trading volume divided by the pool’s total value; RelatedPool spot price Implied turnover ATS or dark pool; Taught inAdvanced Ch.14
Population standard deviation#: Ch. 2Indicators and Valuation; √(Σ(x − mean)² / n) over the window; RelatedSample standard deviation One-standard-deviation move Downside deviation; Taught inAdvanced Ch.1
Portfolio volatility#: Ch. 10Crypto, DeFi and On-Chain; The square root of the weighted sum of every covariance; RelatedRisk contribution Covariance Mirror or copycat portfolio; Taught inAdvanced Ch.13
Position classification#: Ch. 7Disclosures, Insiders and Big Money; New, added, trimmed, exited or unchanged, read from share counts in two filings; Related13F-HR, 13F-NT and amendments Information table Implied turnover; Taught inGhostWire Ch.10
Post-earnings drift#: Ch. 8Events, Forced Flows and Themes; The tendency of prices to keep moving in the direction of a surprise; RelatedSurprise Adjusted (non-GAAP) earnings Post-quantum cryptography; Taught inGhostWire Ch.25
Post-quantum cryptography#: Ch. 8Events, Forced Flows and Themes; Encryption designed to resist attack by a future quantum computer; RelatedHybrid and quantum-inspired Quantum advantage Post-earnings drift; Taught inGhostWire Ch.26
Preferred and common stock#: Ch. 7Disclosures, Insiders and Big Money; Private investors usually hold preferred; the public trades common; RelatedCommon, breakaway, runaway and exhaustion gaps Liquidation preference Confidential submission and S-1; Taught inGhostWire Ch.15
Premium#: Ch. 1Market Structure and Order Flow; The price paid for an option, quoted per share and multiplied by 100 shares per contract; RelatedNet premium (tide)Put/call ratio Roll and premium drag; Taught inGhostWire Ch.5 Advanced Ch.2
Premium or discount#: Ch. 10Crypto, DeFi and On-Chain; Token price divided by the reference price, minus 1; RelatedPar, discount, premium Premium or discount to NAV Wrapped token; Taught inGhostWire Ch.29
Premium or discount to NAV#: Ch. 6Rates, Fed, Macro and Forex; The gap between a fund price and the value of its holdings; RelatedPar, discount, premium Premium or discount New-issue concession and order book; Taught inGhostWire Ch.23
Present value of the strike#: Ch. 3Options Mechanics and the Greeks; K×e^−rT, the strike discounted at the interest rate; RelatedPresent value (PV)Strike or exercise price Strike price; Taught inAdvanced Ch.5
Present value (PV)#: Ch. 5Risk, Sizing and Hedging; Today’s worth of a future amount: PV = amount / (1 + r)^t; RelatedYield to maturity (YTM)Present value of the strike Notional value; Taught inAdvanced Ch.2
Pre-trade limits and kill switch#: Ch. 8Events, Forced Flows and Themes; Caps on order size, position and order rate, enforced outside the strategy; RelatedCap Limit order and market order Loss limit; Taught inGhostWire Ch.30
Price discovery#: Ch. 1Market Structure and Order Flow; The process of finding the price that clears the market after news; RelatedVWAP and ADX LULD Funding rate and open interest; Taught inGhostWire Ch.18
Price impact#: Ch. 10Crypto, DeFi and On-Chain; How far the pool price moves because of a trade; RelatedPrice impact and slippage Sandwich order Liquidity provider (LP) share; Taught inAdvanced Ch.14
Price impact and slippage#: Ch. 10Crypto, DeFi and On-Chain; Price impact is how far a trade moves the price; slippage is the gap between the expected and the received price; RelatedPrice impact Slippage Slippage tolerance; Taught inGhostWire Ch.21
Price improvement#: Ch. 1Market Structure and Order Flow; An execution better than the quote, often by a fraction of a cent; RelatedMidpoint Lit market Aggressor and tick test; Taught inGhostWire Ch.1
Price range#: Ch. 7Disclosures, Insiders and Big Money; The band printed in the prospectus during the marketing period; RelatedGreenshoe (overallotment option)Oversubscription (coverage)Direct listing; Taught inGhostWire Ch.15
Priced in#: Ch. 8Events, Forced Flows and Themes; The share of an expected outcome already reflected in the stock; RelatedPriced move Implied move Base rate; Taught inGhostWire Ch.25
Priced move#: Ch. 3Options Mechanics and the Greeks; Stock price × implied volatility / √365, the one-day move the option assumes; RelatedImplied volatility Implied volatility (IV)Priced in; Taught inAdvanced Ch.6
Price-to-sales#: Ch. 8Events, Forced Flows and Themes; Market value divided by annualized revenue; RelatedTime and sales Baseline and ablation Superposition and amplitude; Taught inGhostWire Ch.26
Primary dealer#: Ch. 6Rates, Fed, Macro and Forex; A bank that trades directly with the central bank and is expected to bid at Treasury auctions; RelatedPivotal trial and primary endpoint Reserves and TGA ON RRP and standing repo facility; Taught inGhostWire Ch.14
Prime broker#: Ch. 7Disclosures, Insiders and Big Money; A bank that provides financing, custody and trading for a fund; RelatedFinancing leg Dealer or counterparty Total return swap; Taught inGhostWire Ch.13
Professional and non-professional#: Ch. 1Market Structure and Order Flow; Exchange categories that carry different fees; trading for an employer or a business generally means professional; RelatedCarry Carry (cash-and-carry)Terminal; Taught inGhostWire Ch.19
Profit target#: Ch. 3Options Mechanics and the Greeks; Pre-set share of the credit at which the spread is closed; RelatedCredit Federal funds target range Target (minimum acceptable return); Taught inAdvanced Ch.10
Profit zone#: Ch. 3Options Mechanics and the Greeks; The price band between the break-evens; RelatedChance of profit Breakeven win rate Profit target; Taught inAdvanced Ch.10
Protective put#: Ch. 5Risk, Sizing and Hedging; A put held alongside the shares it protects; RelatedGordon growth formula Terminal growth rate (g)Present value (PV); Taught inAdvanced Ch.2
Put wall#: Ch. 4Dealer Flow and Volatility; The strike with the largest put-side gamma; RelatedCall wall Call wall and put wall Gamma; Taught inGhostWire Ch.9
Put/call flag#: Ch. 7Disclosures, Insiders and Big Money; A marker on rows for listed options, reported against the underlying shares; Related13F-HR, 13F-NT and amendments Put-call parity Implied turnover; Taught inGhostWire Ch.10
Put-call parity#: Ch. 3Options Mechanics and the Greeks; C − P = S − K×e^−rT for European options at one strike and expiry; RelatedRisk parity Vertical spread Pin risk; Taught inAdvanced Ch.5
Put/call ratio#: Ch. 1Market Structure and Order Flow; Put volume divided by call volume, or put premium divided by call premium; RelatedPremium Net premium (tide)Dealer hedging; Taught inGhostWire Ch.5 GhostWire Ch.20
p-value#: Ch. 8Events, Forced Flows and Themes; The chance of a result at least this extreme if the drug did nothing; 0.05 is the usual cut-off; RelatedAdvisory committee NDA and BLA Topline data; Taught inGhostWire Ch.7

R5 terms

Rate product#: Ch. 9Quant, Backtesting and Automation; The three exchange rates of a loop multiplied together; RelatedGross edge Break-even product Loop product; Taught inAdvanced Ch.12
Ratio#: Ch. 3Options Mechanics and the Greeks; More options sold than bought at the outer strike; RelatedBody Payoff at expiration Wing width; Taught inAdvanced Ch.7
Real policy rate#: Ch. 6Rates, Fed, Macro and Forex; The policy rate minus expected inflation; RelatedReal yield Real yield (TIPS)Summary of Economic Projections (dot plot); Taught inGhostWire Ch.4
Real yield#: Ch. 6Rates, Fed, Macro and Forex; The yield on inflation-protected Treasuries (TIPS), after expected inflation; RelatedReal yield (TIPS)Nominal yield Real policy rate; Taught inGhostWire Ch.28
Real yield (TIPS)#: Ch. 6Rates, Fed, Macro and Forex; The yield on an inflation-protected Treasury, whose principal is adjusted for inflation; RelatedReal yield Breakeven inflation Real policy rate; Taught inGhostWire Ch.22
Realized volatility#: Ch. 4Dealer Flow and Volatility; Annualized standard deviation of daily returns over a lookback window; RelatedVolatility targeting Volatility risk premium Lookback window; Taught inGhostWire Ch.24 GhostWire Ch.27 Advanced Ch.6 Advanced Ch.11
Rebalancing#: Ch. 8Events, Forced Flows and Themes; Selling what grew above target weight and buying what fell below it; RelatedRelative importance (weight)Target (minimum acceptable return)Rebalancing flow; Taught inGhostWire Ch.24
Rebalancing flow#: Ch. 1Market Structure and Order Flow; Index and fund trades executed at the close because a rule requires them; RelatedRebalancing Smart Money and Dumb Money Confidence Cumulative line; Taught inGhostWire Ch.20
Reconstitution#: Ch. 8Events, Forced Flows and Themes; A scheduled change in the members of an index; RelatedLeveraged ETF reset Rebalancing Buyback blackout; Taught inGhostWire Ch.24
Recovery gain#: Ch. 6Rates, Fed, Macro and Forex; The gain needed to return to the old peak, d / (1 − d); RelatedRequired recovery Recovery rate Risk of ruin; Taught inAdvanced Ch.16
Recovery rate#: Ch. 6Rates, Fed, Macro and Forex; The share of face value lenders get back after a default; RelatedRecovery gain Required recovery CDS and CDX; Taught inGhostWire Ch.23
Reference asset#: Ch. 7Disclosures, Insiders and Big Money; The stock or index whose return is swapped; RelatedNotional Close-out right Initial margin; Taught inGhostWire Ch.13
Reg SHO threshold list#: Ch. 1Market Structure and Order Flow; The daily list of stocks whose aggregate fail balance meets size tests for five consecutive settlement days; RelatedWhale threshold Fail to deliver (FTD)Short interest and days to cover; Taught inGhostWire Ch.16
Regime and dominant driver#: Ch. 6Rates, Fed, Macro and Forex; The force (growth, inflation, liquidity or fear) that is organizing prices right now; RelatedLiquidity Gamma flip and regime Stagflation; Taught inGhostWire Ch.28
Relative importance (weight)#: Ch. 1Market Structure and Order Flow; A component’s share of the whole index; RelatedContribution Risk contribution Constant maturity; Taught inGhostWire Ch.6 GhostWire Ch.16
Repo and haircut#: Ch. 6Rates, Fed, Macro and Forex; A short-term loan, often overnight, secured by bonds; the haircut is the slice of collateral value the lender will not lend against; RelatedHaircut Repo and reverse repo ON RRP and standing repo facility; Taught inGhostWire Ch.22
Repo and reverse repo#: Ch. 6Rates, Fed, Macro and Forex; Borrowing cash against collateral, and lending cash against it; RelatedON RRP and standing repo facility Repo and haircut Primary dealer; Taught inGhostWire Ch.14
Required recovery#: Ch. 2Indicators and Valuation; Gain needed to return to a prior peak: L / (1 − L) after a loss L; RelatedRecovery gain Recovery rate Sharpe ratio; Taught inAdvanced Ch.3
Reserve#: Ch. 10Crypto, DeFi and On-Chain; The amount of each token the pool currently holds; RelatedAutomated market maker (AMM)IORB and ON RRP SOFR and IORB; Taught inAdvanced Ch.14
Reserves and TGA#: Ch. 6Rates, Fed, Macro and Forex; Bank balances held at the central bank, and the Treasury’s cash account there; RelatedPrimary dealer ON RRP and standing repo facility Reserve; Taught inGhostWire Ch.14
Residual risk#: Ch. 5Risk, Sizing and Hedging; σ_P × √(1 − ρ²): the volatility left after the best hedge; RelatedHedge effectiveness Hedge Hedge ratio (h); Taught inAdvanced Ch.4
Resolution source#: Ch. 10Crypto, DeFi and On-Chain; The named data or authority that decides the outcome; RelatedFully collateralized contract Automated market maker (AMM)Yes and No; Taught inGhostWire Ch.29
Resting order#: Ch. 1Market Structure and Order Flow; A limit order that waits at its price; RelatedMarketable order Wholesaler or internalizer Time and sales; Taught inGhostWire Ch.1
Return on risk#: Ch. 3Options Mechanics and the Greeks; Maximum profit divided by maximum loss; RelatedMaximum profit Maximum loss Breakeven win rate; Taught inAdvanced Ch.5 Advanced Ch.10
Reward-to-risk#: Ch. 3Options Mechanics and the Greeks; Maximum profit divided by maximum loss; RelatedMaximum loss Maximum profit Net credit or debit; Taught inAdvanced Ch.7
Risk at the stop#: Ch. 6Rates, Fed, Macro and Forex; Account-currency loss if the stop is hit; RelatedStop-out Pip value Recovery gain; Taught inAdvanced Ch.16
Risk contribution#: Ch. 10Crypto, DeFi and On-Chain; Each holding’s weight times its covariance with the whole portfolio, divided by portfolio volatility; RelatedPortfolio volatility Risk share Risk parity; Taught inAdvanced Ch.13
Risk of ruin#: Ch. 6Rates, Fed, Macro and Forex; Probability of ever reaching a set loss, such as −50% or zero; RelatedWin probability (p)Recovery gain Expectancy; Taught inAdvanced Ch.16
Risk parity#: Ch. 8Events, Forced Flows and Themes; A portfolio that sizes each asset so risk contributions are equal, not by dollar weight; RelatedRisk contribution Relative importance (weight)Contribution; Taught inGhostWire Ch.24
Risk share#: Ch. 10Crypto, DeFi and On-Chain; A holding’s risk contribution as a percent of the total; RelatedRisk contribution Equal risk contribution Contribution; Taught inAdvanced Ch.13
Risk-on and risk-off#: Ch. 6Rates, Fed, Macro and Forex; Markets favoring risk assets, or retreating to cash, bonds and havens; RelatedSafe haven Nominal yield Headline and core inflation; Taught inGhostWire Ch.28
RMSE#: Ch. 1Market Structure and Order Flow; The typical size of a forecast error, in the units of the forecast; RelatedReg SHO threshold list Commitments of Traders (TFF)Short interest and days to cover; Taught inGhostWire Ch.16
Roadshow and bookbuilding#: Ch. 7Disclosures, Insiders and Big Money; Meetings with institutions, and the collection of their orders at different prices; RelatedUnderpricing Float Quiet period; Taught inGhostWire Ch.15
Roll#: Ch. 3Options Mechanics and the Greeks; Close a spread and open a similar one later or at new strikes; RelatedCumulative credit Roll and premium drag Roll and roll yield; Taught inAdvanced Ch.10
Roll and premium drag#: Ch. 5Risk, Sizing and Hedging; Replacing an expiring option with a new one; the premium recurs each time; RelatedVolatility drag Premium Roll and roll yield; Taught inAdvanced Ch.4
Roll and roll yield#: Ch. 4Dealer Flow and Volatility; Selling the expiring contract and buying the next one; the gain or loss from the price gap; RelatedRoll and premium drag Roll Roll-down; Taught inGhostWire Ch.27
Roll-down#: Ch. 3Options Mechanics and the Greeks; The change in the back leg’s value as time passes while the curve keeps its shape; RelatedRoll Roll and premium drag Roll and roll yield; Taught inAdvanced Ch.9
Rolling correlation#: Ch. 6Rates, Fed, Macro and Forex; The correlation measured over a moving window of recent days or months; RelatedCorrelation (ρ)Correlation breakdown Dollar index (DXY); Taught inGhostWire Ch.28
Round trip#: Ch. 9Quant, Backtesting and Automation; Opening a position and closing it again; Relatedt-statistic Fill assumption Walk-forward efficiency; Taught inAdvanced Ch.8
Rug pull and honeypot#: Ch. 10Crypto, DeFi and On-Chain; A rug pull drains the pool; a honeypot lets buyers in but blocks selling; RelatedBlock Exit liquidity Paper value and realizable value; Taught inGhostWire Ch.21
Rule 10b5-1 plan box#: Ch. 7Disclosures, Insiders and Big Money; A checkbox that marks a trade as made under a pre-arranged written plan; RelatedSecurities owned following Strike or exercise price Transaction code; Taught inGhostWire Ch.3
Rule bot, ML model, LLM agent#: Ch. 8Events, Forced Flows and Themes; Does exactly what you wrote; scores inputs; reads text and can place orders; RelatedCapex Run-rate revenue Pre-trade limits and kill switch; Taught inGhostWire Ch.30
Run-rate revenue#: Ch. 8Events, Forced Flows and Themes; A recent period annualized, such as one month times 12; RelatedBacklog or remaining performance obligations Gross margin Foundry and packaging; Taught inGhostWire Ch.30
Run-up and sell the news#: Ch. 8Events, Forced Flows and Themes; Buying ahead of the date and selling into the announcement; RelatedPDUFA goal date Cash runway and dilution Clinical hold; Taught inGhostWire Ch.7

S11 terms

Safe haven#: Ch. 6Rates, Fed, Macro and Forex; An asset expected to hold value when risk assets fall; RelatedRisk-on and risk-off Real yield Regime and dominant driver; Taught inGhostWire Ch.28
Sample standard deviation#: Ch. 2Indicators and Valuation; √(Σ(x − mean)² / (n − 1)); RelatedOut-of-sample test Population standard deviation One-standard-deviation move; Taught inAdvanced Ch.3
Sandwich attack and MEV#: Ch. 10Crypto, DeFi and On-Chain; A bot buys before and sells after a trade it can see, and MEV is value captured by ordering transactions; RelatedSandwich order Sniper Exit liquidity; Taught inGhostWire Ch.21
Sandwich order#: Ch. 10Crypto, DeFi and On-Chain; An attacker orders trades before and after a victim’s swap to profit from its price impact; RelatedPrice impact Sandwich attack and MEV Swap fee; Taught inAdvanced Ch.14
Schedule 13D and 13G#: Ch. 7Disclosures, Insiders and Big Money; Ownership reports for holders above 5%: 13D for an active holder, 13G for a passive one; RelatedBeneficial ownership Form 3, Form 4, Form 5 Strike or exercise price; Taught inGhostWire Ch.3
Seasonal-factor revision#: Ch. 6Rates, Fed, Macro and Forex; The yearly recalculation of seasonal factors, which changes the seasonally adjusted history; RelatedSmoothing factor (α)Seasonally adjusted (SA) and not adjusted (NSA)Consensus; Taught inGhostWire Ch.6
Seasonally adjusted (SA) and not adjusted (NSA)#: Ch. 6Rates, Fed, Macro and Forex; SA removes predictable calendar patterns; NSA is the raw index; RelatedAdjusted (non-GAAP) earnings Carry-adjusted theta Delta-adjusted notional; Taught inGhostWire Ch.6
Seat#: Ch. 1Market Structure and Order Flow; One licensed user of a terminal, or historically one membership in an exchange; RelatedTerminal Professional and non-professional Opportunity cost; Taught inGhostWire Ch.19
Section 13(f) securities#: Ch. 7Disclosures, Insiders and Big Money; The official list of securities a 13F may include; RelatedSection 16 insider Securities lending reporting (SLATE)Securities owned following; Taught inGhostWire Ch.10
Section 16 insider#: Ch. 7Disclosures, Insiders and Big Money; An officer, a director or a beneficial owner of more than 10% of a company’s registered shares; RelatedSection 13(f) securities Short-swing rule (Section 16(b))Acquired or disposed (A or D); Taught inGhostWire Ch.3
Securities lending reporting (SLATE)#: Ch. 1Market Structure and Order Flow; The new FINRA (USA) reporting of loan transactions; RelatedSecurities owned following Section 13(f) securities Borrow fee and utilization; Taught inGhostWire Ch.16
Securities owned following#: Ch. 7Disclosures, Insiders and Big Money; The insider’s total holding of that class after the reported transaction; RelatedSecurities lending reporting (SLATE)Net notional Form 3, Form 4, Form 5; Taught inGhostWire Ch.3
Seed and warm-up#: Ch. 2Indicators and Valuation; The starting value of the recursion and the early bars that still depend on it; RelatedHalf-life Zero-line cross Population standard deviation; Taught inAdvanced Ch.1
Sensitivity table#: Ch. 5Risk, Sizing and Hedging; The same model re-run across a grid of assumptions; RelatedInformation table Table I and Table II Implied exit multiple; Taught inAdvanced Ch.2
Settlement date#: Ch. 1Market Structure and Order Flow; The day a trade is due to deliver; US equities settle one business day after the trade (T+1) since 28 May 2024; RelatedFail to deliver (FTD)AM and PM settlement Reg SHO threshold list; Taught inGhostWire Ch.16
Shares versus principal (SH and PRN)#: Ch. 7Disclosures, Insiders and Big Money; Shares for stock, principal amount for debt convertibles; RelatedBasic and fully diluted shares CUSIP Section 13(f) securities; Taught inGhostWire Ch.10
Sharpe ratio#: Ch. 2Indicators and Valuation; Mean excess return / standard deviation, annualized; RelatedExcess return Standard error of a Sharpe ratio Sortino ratio; Taught inAdvanced Ch.3 Advanced Ch.7
Shelter and owners’ equivalent rent#: Ch. 6Rates, Fed, Macro and Forex; The housing component, largely an estimate of what owners would pay in rent; RelatedOwner code Core and supercore Contribution; Taught inGhostWire Ch.6
Short interest and days to cover#: Ch. 1Market Structure and Order Flow; Shares sold short, and that number divided by average daily volume; RelatedBid-to-cover, tail, dealer takedown Open interest Coin days destroyed; Taught inGhostWire Ch.16
Short-swing rule (Section 16(b))#: Ch. 7Disclosures, Insiders and Big Money; A rule that makes an insider return to the company any profit from a purchase and a sale within less than six months; RelatedSection 16 insider Securities owned following Direct or indirect (D or I); Taught inGhostWire Ch.3
Signal line#: Ch. 2Indicators and Valuation; A 9-bar EMA of the MACD line; RelatedMACD line Histogram EMA; Taught inAdvanced Ch.1
Significance level#: Ch. 9Quant, Backtesting and Automation; The chance of a false pass that one test is allowed, commonly 5 percent; RelatedFamily-wise error Trial or variant Walk-forward efficiency; Taught inAdvanced Ch.8
Skew#: Ch. 4Dealer Flow and Volatility; Differences in implied volatility across strikes; in equities, usually higher on downside strikes; RelatedImplied volatility Implied volatility (IV)VVIX; Taught inGhostWire Ch.27
Slippage#: Ch. 6Rates, Fed, Macro and Forex; The gap between the expected price and the price actually obtained; RelatedPrice impact and slippage Per-leg cost Slippage tolerance; Taught inAdvanced Ch.14 Advanced Ch.17
Slippage tolerance#: Ch. 10Crypto, DeFi and On-Chain; The setting that caps how much worse than the quote a fill may be before it fails; RelatedPrice impact and slippage Slippage Cap; Taught inGhostWire Ch.21 Advanced Ch.14
Smart Money and Dumb Money Confidence#: Ch. 1Market Structure and Order Flow; Two 0 to 100 indexes whose inputs are labelled by their historical record at extremes, not by who trades; RelatedSmart Money Flow Index (SMFI)Smart Money Index (SMI)Contrarian reading; Taught inGhostWire Ch.20
Smart Money Flow Index (SMFI)#: Ch. 1Market Structure and Order Flow; A Dow-based variant that uses 30 to 60-minute windows and accumulates the result; RelatedSmart Money Index (SMI)Smart Money and Dumb Money Confidence Minutes; Taught inGhostWire Ch.20
Smart Money Index (SMI)#: Ch. 1Market Structure and Order Flow; A running total: yesterday’s value, minus the first-30-minute move, plus the last-hour move; RelatedSmart Money Flow Index (SMFI)Smart Money and Dumb Money Confidence Minutes; Taught inGhostWire Ch.20
Smoothing factor (α)#: Ch. 2Indicators and Valuation; The weight an EMA gives to the newest close: α = 2 / (n + 1); RelatedRelative importance (weight)EMA Seasonal-factor revision; Taught inAdvanced Ch.1
Snapshot date and filing date#: Ch. 7Disclosures, Insiders and Big Money; The last day of the quarter and the day the report is filed; RelatedFiling date Filing date and publication date 13F-HR, 13F-NT and amendments; Taught inGhostWire Ch.10
Sniper#: Ch. 10Crypto, DeFi and On-Chain; A bot that buys in the first moments after launch; RelatedBundle and cluster Sandwich attack and MEV Supply concentration; Taught inGhostWire Ch.21
SOFR#: Ch. 6Rates, Fed, Macro and Forex; The overnight rate on loans collateralized by Treasury securities; RelatedSOFR and IORB Discount rate Quantitative tightening (QT); Taught inGhostWire Ch.4
SOFR and IORB#: Ch. 6Rates, Fed, Macro and Forex; The overnight repo benchmark rate, and the rate the Fed pays banks on reserves; RelatedIORB and ON RRP SOFR Reserve; Taught inGhostWire Ch.22
Sortino ratio#: Ch. 2Indicators and Valuation; Mean excess return / downside deviation, annualized; RelatedDownside deviation Excess return Sharpe ratio; Taught inAdvanced Ch.3 Advanced Ch.7
Special Opening Quotation#: Ch. 4Dealer Flow and Volatility; The VIX expiry settlement value, computed from SPX option prices at the open on expiry morning; RelatedVIX future Triple witching and OPEX Opening and closing cross; Taught inGhostWire Ch.17
Spoofing#: Ch. 1Market Structure and Order Flow; Placing orders with no intent to trade them to create a false impression; RelatedSweep, block and complex order Depth Intrinsic and extrinsic value; Taught inGhostWire Ch.5
Spot crypto ETF#: Ch. 7Disclosures, Insiders and Big Money; A fund that holds the coin and trades like a stock; RelatedPool spot price Spot VIX Direct token; Taught inGhostWire Ch.12
Spot VIX#: Ch. 4Dealer Flow and Volatility; The calculated index value right now; RelatedPool spot price Spot crypto ETF Roll and roll yield; Taught inGhostWire Ch.27
Spread#: Ch. 6Rates, Fed, Macro and Forex; Ask minus bid, in pips or basis points; RelatedBasis point (bp)Spread (pair)Effective leverage; Taught inAdvanced Ch.17
Spread and depth#: Ch. 1Market Structure and Order Flow; Spread is the gap between best bid and best ask; depth is the number of shares waiting at each price; RelatedOpening auction Gap ECN; Taught inGhostWire Ch.18
Spread duration#: Ch. 6Rates, Fed, Macro and Forex; The percentage price change per 1.00 point change in the spread; RelatedModified duration Long-duration asset Recovery rate; Taught inGhostWire Ch.23
Spread (pair)#: Ch. 9Quant, Backtesting and Automation; Log of one price less beta times the log of another; RelatedHedge ratio (beta)Spread Cross rate; Taught inAdvanced Ch.12
Spread width#: Ch. 3Options Mechanics and the Greeks; Distance between the short and long strike of one vertical; RelatedRoll Credit Profit target; Taught inAdvanced Ch.10
Spreading#: Ch. 1Market Structure and Order Flow; Offsetting long and short positions held by the same trader, often in different contract months; RelatedError correction Commitments of Traders (TFF)Month over month and annualized; Taught inGhostWire Ch.16
Square-root-of-time rule#: Ch. 4Dealer Flow and Volatility; Volatility over a period scales with the square root of the time, not with time; RelatedPortfolio volatility Vega At-the-money straddle; Taught inAdvanced Ch.11 Advanced Ch.13
Stabilization#: Ch. 7Disclosures, Insiders and Big Money; Underwriter buying to support the price if it trades below the offer; RelatedAllocation Gross spread Quiet period; Taught inGhostWire Ch.15
Stablecoin mint and burn#: Ch. 10Crypto, DeFi and On-Chain; The issuer creating or destroying tokens as customers add or remove dollars; RelatedMint and freeze authority Stablecoin trade Deposit address and sweep; Taught inGhostWire Ch.11
Stablecoin trade#: Ch. 7Disclosures, Insiders and Big Money; A trade in a token pegged to a currency; RelatedStablecoin mint and burn Direct token Amendment; Taught inGhostWire Ch.12
Stagflation#: Ch. 6Rates, Fed, Macro and Forex; Weak growth with high or rising inflation; RelatedGrowth and inflation quadrants Regime and dominant driver Real yield; Taught inGhostWire Ch.28
Stake units (N)#: Ch. 6Rates, Fed, Macro and Forex; Account size divided by the amount risked per trade; RelatedCreation unit Expectancy Kelly fraction (f*); Taught inAdvanced Ch.16
Stale quote#: Ch. 6Rates, Fed, Macro and Forex; A price that no longer matches the live market; RelatedTriangular arbitrage Bid and ask Equity; Taught inAdvanced Ch.17
Standard error of a Sharpe ratio#: Ch. 2Indicators and Valuation; Approximately √((1 + SR²/2) / T) for an annual ratio SR over T years; RelatedStandard error of Sharpe Sharpe ratio Sample standard deviation; Taught inAdvanced Ch.3
Standard error of Sharpe#: Ch. 9Quant, Backtesting and Automation; How much a measured Sharpe wobbles from sample to sample; RelatedStandard error of a Sharpe ratio Family-wise error Sharpe ratio; Taught inAdvanced Ch.8
Static and dynamic margining#: Ch. 7Disclosures, Insiders and Big Money; A margin rate fixed at inception, or one revised as the risk of the position changes; RelatedInitial margin Maintenance requirement and margin call Variation margin; Taught inGhostWire Ch.13
STOCK Act#: Ch. 7Disclosures, Insiders and Big Money; The 2012 federal law that requires members of Congress and senior officials to report securities transactions soon after they happen; RelatedNotification date Owner code Transaction date; Taught inGhostWire Ch.2 GhostWire Ch.12
Stop-out#: Ch. 6Rates, Fed, Macro and Forex; Automatic closing of positions at a lower margin level; RelatedMargin level Risk at the stop Used margin; Taught inAdvanced Ch.17
Straddle#: Ch. 8Events, Forced Flows and Themes; A call and put, usually at the money, on the same strike and expiry, bought or sold together; RelatedImplied move At-the-money straddle ATM straddle and implied move; Taught inGhostWire Ch.25
Strike or exercise price#: Ch. 7Disclosures, Insiders and Big Money; The fixed price at which an option holder can buy the share; RelatedCashless exercise Strike price Tax withholding (code F); Taught inGhostWire Ch.3
Strike price#: Ch. 5Risk, Sizing and Hedging; The price at which the option holder may sell (put) or buy (call); RelatedStrike or exercise price Present value of the strike Discount rate (r); Taught inAdvanced Ch.2
Summary of Economic Projections (dot plot)#: Ch. 6Rates, Fed, Macro and Forex; Each participant’s own projection for growth, inflation, unemployment and the policy rate, released quarterly; RelatedReal policy rate Minutes Neutral rate; Taught inGhostWire Ch.4
Superposition and amplitude#: Ch. 8Events, Forced Flows and Themes; A state described by amplitudes, one for each outcome. The probability of an outcome is the squared magnitude of its amplitude; RelatedAmplitude estimation Qubit Interference; Taught inGhostWire Ch.26
Supply concentration#: Ch. 10Crypto, DeFi and On-Chain; The share of supply held by the largest wallets, such as the top 10; RelatedConcentration Bundle and cluster Sniper; Taught inGhostWire Ch.21
Surprise#: Ch. 6Rates, Fed, Macro and Forex; Actual minus a benchmark, often scaled by the typical size of surprises; RelatedPost-earnings drift Index level and base period Whisper number; Taught inGhostWire Ch.6 GhostWire Ch.25
Swap fee#: Ch. 10Crypto, DeFi and On-Chain; A percentage of the input kept by the pool (0.30% in the examples); RelatedTotal return swap Sandwich order Reserve; Taught inAdvanced Ch.14
Sweep, block and complex order#: Ch. 1Market Structure and Order Flow; A sweep hits several exchanges at once, a block is a large negotiated trade, a complex order trades several legs together; RelatedBlock Deposit address and sweep Leg; Taught inGhostWire Ch.5
Synthetic or perpetual token#: Ch. 10Crypto, DeFi and On-Chain; A contract that tracks a stock price with no shares behind it; RelatedPerpetual future Synthetic stock Issuer-native token; Taught inGhostWire Ch.29
Synthetic stock#: Ch. 3Options Mechanics and the Greeks; A long call plus a short put at one strike; RelatedSynthetic or perpetual token Put-call parity Pin risk; Taught inAdvanced Ch.5

T4 terms

Table I and Table II#: Ch. 7Disclosures, Insiders and Big Money; Table I lists non-derivative securities such as common stock; Table II lists derivatives such as options and restricted stock units; RelatedInformation table Sensitivity table Form 144; Taught inGhostWire Ch.3
Target (minimum acceptable return)#: Ch. 2Indicators and Valuation; The return below which a result counts as a shortfall; RelatedRebalancing Bonferroni cutoff Effective fed funds rate; Taught inAdvanced Ch.3
Tax withholding (code F)#: Ch. 7Disclosures, Insiders and Big Money; Shares withheld by the company to cover tax or an exercise price (USA); RelatedTransaction code Strike or exercise price Cashless exercise; Taught inGhostWire Ch.3
Term premium#: Ch. 6Rates, Fed, Macro and Forex; Extra yield demanded for holding a long bond instead of rolling short-term paper; RelatedPar, discount, premium Yield to maturity (YTM)Repo and haircut; Taught inGhostWire Ch.22
Term structure#: Ch. 4Dealer Flow and Volatility; GhostWire Ch.27VIX futures (or VIX9D, VIX, VIX3M) laid out by maturity; Advanced Ch.9Implied volatility of the same strike plotted against expiration; RelatedVIX future Implied volatility Implied volatility (IV); Taught inGhostWire Ch.27 Advanced Ch.9 Advanced Ch.11
Terminal#: Ch. 1Market Structure and Order Flow; A subscription workstation that bundles data, analytics and messaging for professionals; RelatedSeat Terminal growth rate (g)Terminal value (TV); Taught inGhostWire Ch.19
Terminal growth rate (g)#: Ch. 5Risk, Sizing and Hedging; The steady growth assumed after the forecast ends; RelatedTerminal value (TV)Gordon growth formula Terminal; Taught inAdvanced Ch.2
Terminal value (TV)#: Ch. 5Risk, Sizing and Hedging; The value at the end of the forecast of all later cash flows; RelatedTerminal growth rate (g)Terminal Discount rate (r); Taught inAdvanced Ch.2
Theta (Θ)#: Ch. 3Options Mechanics and the Greeks; The change in option value from one day passing; RelatedCarry-adjusted theta Break-even move Long and short gamma; Taught inAdvanced Ch.6
Time and sales#: Ch. 1Market Structure and Order Flow; The running list of trades with time, price and size; RelatedPrice-to-sales Consolidated tape and SIP TRF; Taught inGhostWire Ch.1
Topline data#: Ch. 8Events, Forced Flows and Themes; The first headline result a company releases, before the full analysis; Relatedp-value Binary event and single-asset company ATM straddle and implied move; Taught inGhostWire Ch.7
Total return leg#: Ch. 7Disclosures, Insiders and Big Money; The payment of price change plus dividends from the dealer to the holder of the exposure; RelatedHedge Market maker (dealer)Total return swap; Taught inGhostWire Ch.13
Total return swap#: Ch. 4Dealer Flow and Volatility; A contract in which one side pays the other the total return of an asset (price change plus dividends) in exchange for a financing payment; RelatedHedge Total return leg Swap fee; Taught inGhostWire Ch.13 GhostWire Ch.17
Total variance#: Ch. 3Options Mechanics and the Greeks; Volatility squared times time, σ² × t; RelatedEvent variance Variance Minimum-variance ratio (h*); Taught inAdvanced Ch.9 Advanced Ch.11
Touch, poke and close beyond#: Ch. 4Dealer Flow and Volatility; Touch: price reaches the level. Poke: it trades through but the bar closes back inside. Close beyond: the bar settles on the far side; RelatedTouch probability Acceptance and retest AM and PM settlement; Taught inGhostWire Ch.9
Touch probability#: Ch. 9Quant, Backtesting and Automation; Chance that the price reaches a level at any time before a date; RelatedTouch, poke and close beyond Implied probability Model probability; Taught inAdvanced Ch.12
Trade side or aggressor#: Ch. 1Market Structure and Order Flow; Whether the buyer or the seller crossed the spread, inferred from the price against the bid and ask; RelatedBid and ask Aggressor and tick test Order book imbalance; Taught inGhostWire Ch.5
Transaction code#: Ch. 7Disclosures, Insiders and Big Money; A one-letter code for what kind of transaction it was, such as P, S, A, M, F or G; RelatedOwner code Tax withholding (code F)Periodic transaction report (PTR); Taught inGhostWire Ch.3
Transaction date#: Ch. 7Disclosures, Insiders and Big Money; The day the trade executed; RelatedLag Periodic transaction report (PTR)Transaction type; Taught inGhostWire Ch.2 GhostWire Ch.12
Transaction type#: Ch. 7Disclosures, Insiders and Big Money; Purchase, full sale, partial sale or exchange; RelatedTransaction date Periodic transaction report (PTR)STOCK Act; Taught inGhostWire Ch.2 GhostWire Ch.12
TRF#: Ch. 1Market Structure and Order Flow; A FINRA (USA) trade reporting facility where off-exchange trades are reported for the tape; RelatedConsolidated tape and SIP Lit market Time and sales; Taught inGhostWire Ch.1
Trial or variant#: Ch. 9Quant, Backtesting and Automation; One distinct combination of rules and settings run against the data; RelatedEffective number of trials Pivotal trial and primary endpoint Parameter drift; Taught inAdvanced Ch.8
Triangular arbitrage#: Ch. 6Rates, Fed, Macro and Forex; A loop of three trades that returns to the starting currency; RelatedArbitrage re-pricing Leg Loop product; Taught inAdvanced Ch.17
Triple witching and OPEX#: Ch. 4Dealer Flow and Volatility; The third-Friday expiry of stock options, index options and index futures each March, June, September and December; monthly OPEX is every third Friday; RelatedOpex Special Opening Quotation Delta hedge; Taught inGhostWire Ch.17
True range (TR)#: Ch. 2Indicators and Valuation; The largest of H − L, |H − prior close| and |L − prior close|; RelatedPopulation standard deviation EMA Signal line; Taught inAdvanced Ch.1
t-statistic#: Ch. 9Quant, Backtesting and Automation; An estimate divided by its standard error; RelatedStandard error of Sharpe Bonferroni cutoff Family-wise error; Taught inAdvanced Ch.8

V2 terms

Value at Risk (VaR)#: Ch. 3Options Mechanics and the Greeks; The loss that is exceeded in no more than the chosen share of periods; RelatedExpected shortfall Equal risk contribution Downside deviation; Taught inAdvanced Ch.7 Advanced Ch.13
Vanna#: Ch. 4Dealer Flow and Volatility; The change in delta caused by a change in implied volatility; RelatedImplied volatility Implied volatility (IV)Delta; Taught inGhostWire Ch.8 GhostWire Ch.17 Advanced Ch.6
Variance#: Ch. 4Dealer Flow and Volatility; Volatility squared; (VIX / 100)² is annualized variance; RelatedEvent variance Hedge effectiveness Total variance; Taught inGhostWire Ch.27 Advanced Ch.13
Variation margin#: Ch. 7Disclosures, Insiders and Big Money; Cash that moves with the daily mark-to-market; RelatedInitial margin Maintenance requirement and margin call Static and dynamic margining; Taught inGhostWire Ch.13
Vega#: Ch. 4Dealer Flow and Volatility; Option price change for one point of IV; RelatedVega weighting Vomma (volga)Implied volatility (IV); Taught inAdvanced Ch.11
Vega weighting#: Ch. 3Options Mechanics and the Greeks; Comparing legs by vega, since at-the-money vega grows with the square root of time; RelatedVega Leg Upward curve; Taught inAdvanced Ch.9
Vertical spread#: Ch. 3Options Mechanics and the Greeks; Two options of one type and one expiry at different strikes, one bought and one sold; RelatedPut-call parity Early assignment Pin risk; Taught inAdvanced Ch.5
Virtual reserves#: Ch. 10Crypto, DeFi and On-Chain; The SOL and token amounts the pricing formula treats as being in the pool; RelatedReserve Bonding curve Constant-product invariant; Taught inGhostWire Ch.21
VIX future#: Ch. 4Dealer Flow and Volatility; A contract that settles to a special opening quotation of the VIX on a fixed expiry date; RelatedTerm structure Special Opening Quotation 30-day fed funds futures; Taught inGhostWire Ch.27
VIX9D and VIX3M#: Ch. 4Dealer Flow and Volatility; The same Cboe method over 9 days and over 3 months; RelatedTerm structure Constant maturity Mean reversion; Taught inGhostWire Ch.27
Vol point#: Ch. 4Dealer Flow and Volatility; One unit of the quote: a move from 20 to 21 is one point; RelatedBasis point (bp)Implied volatility and a volatility point Implied volatility; Taught inGhostWire Ch.27
Volatility drag#: Ch. 6Rates, Fed, Macro and Forex; The gap between arithmetic and geometric growth caused by swings; RelatedRoll and premium drag Log growth rate g(f)Kelly fraction (f*); Taught inAdvanced Ch.16
Volatility risk premium#: Ch. 4Dealer Flow and Volatility; The typical excess of implied over realized volatility; RelatedRealized volatility Implied volatility Volatility targeting; Taught inGhostWire Ch.27
Volatility targeting#: Ch. 4Dealer Flow and Volatility; Sizing exposure as target volatility divided by realized volatility, often with a cap of 100%; RelatedRealized volatility Target (minimum acceptable return)Cap; Taught inGhostWire Ch.24 GhostWire Ch.27
Volatility (σ)#: Ch. 10Crypto, DeFi and On-Chain; The standard deviation of returns over a stated period, usually annualized; RelatedZ-score Covariance Fat tails; Taught inAdvanced Ch.13
Volume and open interest#: Ch. 1Market Structure and Order Flow; Contracts traded today, and contracts outstanding at the previous close; RelatedFunding rate and open interest Open interest Open interest and volume; Taught inGhostWire Ch.5
Vomma (volga)#: Ch. 3Options Mechanics and the Greeks; How vega changes when implied volatility changes; RelatedImplied volatility Implied volatility (IV)Vega; Taught inAdvanced Ch.6
VVIX#: Ch. 4Dealer Flow and Volatility; An index of the implied volatility of VIX options, the volatility of volatility; RelatedImplied volatility Implied volatility (IV)Contango and backwardation; Taught inGhostWire Ch.27
VWAP and ADX#: Ch. 1Market Structure and Order Flow; VWAP is the volume-weighted average price of the session; ADX measures trend strength on a 0 to 100 scale; RelatedExtended hours Opening range LULD; Taught inGhostWire Ch.18

W1 term

Walk-forward efficiency#: Ch. 9Quant, Backtesting and Automation; Mean out-of-sample return divided by mean in-sample return; RelatedForward guidance Forward volatility Standard error of Sharpe; Taught inAdvanced Ch.8
Weight drift#: Ch. 7Disclosures, Insiders and Big Money; A position’s weight changing because prices or other holdings changed; RelatedRelative importance (weight)Best-idea weight and crowding Weight (w); Taught inGhostWire Ch.10
Weight (w)#: Ch. 10Crypto, DeFi and On-Chain; The fraction of portfolio value held in one asset; RelatedInverse-volatility weights Risk contribution Weight drift; Taught inAdvanced Ch.13
Whale threshold#: Ch. 10Crypto, DeFi and On-Chain; The size above which a feed raises an alert, often set in dollars; RelatedReg SHO threshold list Stablecoin mint and burn Hot and cold wallet; Taught inGhostWire Ch.11
Whisper number#: Ch. 6Rates, Fed, Macro and Forex; An unofficial estimate that traders position around, often different from consensus; RelatedConsensus Surprise Shelter and owners’ equivalent rent; Taught inGhostWire Ch.6 GhostWire Ch.25
Wholesaler or internalizer#: Ch. 1Market Structure and Order Flow; A market maker that buys retail order flow and fills it against its own inventory; RelatedMarket maker (dealer)Resting order ADV; Taught inGhostWire Ch.1
Width#: Ch. 3Options Mechanics and the Greeks; The distance between the two strikes; RelatedReturn on risk Breakeven win rate Net debit or credit; Taught inAdvanced Ch.5
Win probability (p)#: Ch. 6Rates, Fed, Macro and Forex; The share of trades that finish as winners; RelatedImplied probability Model probability Touch probability; Taught inAdvanced Ch.16
Wing width#: Ch. 3Options Mechanics and the Greeks; Distance between a short strike and the long strike that protects it; RelatedBroken wing Value at Risk (VaR)Payoff at expiration; Taught inAdvanced Ch.7
Wrapped token#: Ch. 10Crypto, DeFi and On-Chain; A token backed by an asset, here shares, that an issuer holds; a claim on the issuer; RelatedBridge and wrapped token Issuer-native token Synthetic or perpetual token; Taught inGhostWire Ch.29

These are short meanings only. Each linked chapter shows how the term is used and works through examples. The chapters belong to the GhostWire and Advanced modules, which unlock on The Path.

Glossary