[{"data":1,"prerenderedAt":1876},["ShallowReactive",2],{"glossary-all":3},[4,43,71,97,122,146,176,201,225,250,274,297,316,347,370,394,416,443,469,493,519,543,565,589,616,638,664,685,704,725,746,774,796,821,846,869,890,916,937,959,980,1006,1026,1045,1066,1087,1108,1128,1147,1171,1193,1220,1246,1267,1286,1306,1333,1358,1384,1410,1431,1452,1476,1500,1520,1546,1567,1587,1608,1634,1655,1677,1697,1723,1742,1766,1785,1809,1832,1852],{"id":5,"title":6,"body":7,"description":13,"extension":28,"meta":29,"navigation":30,"path":31,"related":32,"seo":36,"sourceName":37,"sourceUrl":38,"stem":39,"term":40,"theme":41,"__hash__":42},"glossary\u002Fglossary\u002Fannualized-volatility.md","Annualized Volatility",{"type":8,"value":9,"toc":24},"minimark",[10,14,17],[11,12,13],"p",{},"Annualized volatility rescales a shorter-period volatility to a yearly figure by multiplying by the square root of the number of periods in a year.",[11,15,16],{},"Because variance adds across independent periods, you multiply a daily standard deviation by the square root of 252 (trading days) to annualize it. The rule assumes independent returns and can understate risk when returns cluster in a crisis.",[11,18,19,23],{},[20,21,22],"strong",{},"Formula \u002F example:"," Annual vol = daily vol x sqrt(252). A 1% daily vol is about 15.9% annualized",{"title":25,"searchDepth":26,"depth":26,"links":27},"",2,[],"md",{},true,"\u002Fglossary\u002Fannualized-volatility",[33,34,35],"Volatility","Standard deviation","Variance",{"description":13},"Danielsson & Zigrand (LSE): On time-scaling of risk and the square-root-of-time rule","https:\u002F\u002Fresearchonline.lse.ac.uk\u002Fid\u002Feprint\u002F24827\u002F1\u002Fdp439.pdf","glossary\u002Fannualized-volatility","Annualized volatility","Volatility and statistics","w5warnRMJn4f6_-BeDFq3KMVYtOEAOzOuSc6_z6BBG4",{"id":44,"title":45,"body":46,"description":50,"extension":28,"meta":61,"navigation":30,"path":62,"related":63,"seo":65,"sourceName":66,"sourceUrl":67,"stem":68,"term":69,"theme":41,"__hash__":70},"glossary\u002Fglossary\u002Faverage-true-range-atr.md","Average True Range Atr",{"type":8,"value":47,"toc":59},[48,51,54],[11,49,50],{},"Average True Range (ATR) is a volatility indicator that measures the typical size of an instrument's price range over a set number of periods.",[11,52,53],{},"Developed by J. Welles Wilder Jr. in 1978, it captures real range including overnight gaps, and is quoted in the instrument's own price units so it plugs straight into stop and size calculations. ATR measures volatility only and gives no directional signal.",[11,55,56,58],{},[20,57,22],{}," ATR is a smoothed average of true range, usually over 14 periods",{"title":25,"searchDepth":26,"depth":26,"links":60},[],{},"\u002Fglossary\u002Faverage-true-range-atr",[64,33,34],"True range",{"description":50},"Corporate Finance Institute: Average True Range (ATR)","https:\u002F\u002Fcorporatefinanceinstitute.com\u002Fresources\u002Fcapital-markets\u002Faverage-true-range\u002F","glossary\u002Faverage-true-range-atr","Average True Range (ATR)","PnOOltXTGLc9qoZ3HFtqalPXhV8pQKTZxXvUelKrPZg",{"id":72,"title":73,"body":74,"description":78,"extension":28,"meta":84,"navigation":30,"path":85,"related":86,"seo":90,"sourceName":91,"sourceUrl":92,"stem":93,"term":94,"theme":95,"__hash__":96},"glossary\u002Fglossary\u002Faveraging-down.md","Averaging Down",{"type":8,"value":75,"toc":82},[76,79],[11,77,78],{},"Averaging down is adding to a losing position to lower the average entry price, which increases risk exactly as the trade moves against you.",[11,80,81],{},"It feels like it must work eventually, but it concentrates exposure when you are most wrong and can turn a small planned loss into an unrecoverable one. Add to winners, if at all, not to losers.",{"title":25,"searchDepth":26,"depth":26,"links":83},[],{},"\u002Fglossary\u002Faveraging-down",[87,88,89],"Martingale","Stop-loss","Risk management",{"description":78},"Ethier & Hoppe: Teaching a University Course on the Mathematics of Gambling","https:\u002F\u002Farxiv.org\u002Fabs\u002F1911.03008","glossary\u002Faveraging-down","Averaging down","Expectancy and edge","DtsER4YKbcRMctD3Y1tLWZjt3GeY08AHVog2z2x8y6k",{"id":98,"title":99,"body":100,"description":104,"extension":28,"meta":110,"navigation":30,"path":111,"related":112,"seo":116,"sourceName":117,"sourceUrl":118,"stem":119,"term":99,"theme":120,"__hash__":121},"glossary\u002Fglossary\u002Fbackwardation.md","Backwardation",{"type":8,"value":101,"toc":108},[102,105],[11,103,104],{},"Backwardation is when a futures price is below the expected spot price, giving a downward-sloping curve across expiries.",[11,106,107],{},"It can reflect a premium for holding the physical asset now. The futures price rises toward spot as expiry approaches.",{"title":25,"searchDepth":26,"depth":26,"links":109},[],{},"\u002Fglossary\u002Fbackwardation",[113,114,115],"Contango","Basis","Futures contract",{"description":104},"CFTC Glossary: Backwardation","https:\u002F\u002Fwww.cftc.gov\u002FLearnAndProtect\u002FEducationCenter\u002FCFTCGlossary\u002Findex.htm","glossary\u002Fbackwardation","Derivatives and contracts","aPVzv8IaI4Bq1kybK_NJPY2g0xY3Gs1enEOW_vCPFTk",{"id":123,"title":114,"body":124,"description":128,"extension":28,"meta":139,"navigation":30,"path":140,"related":141,"seo":142,"sourceName":143,"sourceUrl":118,"stem":144,"term":114,"theme":120,"__hash__":145},"glossary\u002Fglossary\u002Fbasis.md",{"type":8,"value":125,"toc":137},[126,129,132],[11,127,128],{},"Basis is the difference between a futures price and the current spot price of the underlying.",[11,130,131],{},"For financial futures it largely reflects the cost of carry and shrinks toward zero as expiry approaches, because at expiry the future must equal the spot it settles against.",[11,133,134,136],{},[20,135,22],{}," Basis = futures price - spot price",{"title":25,"searchDepth":26,"depth":26,"links":138},[],{},"\u002Fglossary\u002Fbasis",[113,99,115],{"description":128},"CFTC Glossary: Basis","glossary\u002Fbasis","l3ytVPoR4-kPzt0hZmJPa1GWLPr25uEl-Xzj7ZqAzns",{"id":147,"title":148,"body":149,"description":153,"extension":28,"meta":164,"navigation":30,"path":165,"related":166,"seo":169,"sourceName":170,"sourceUrl":171,"stem":172,"term":173,"theme":174,"__hash__":175},"glossary\u002Fglossary\u002Fbasis-point.md","Basis Point",{"type":8,"value":150,"toc":162},[151,154,157],[11,152,153],{},"A basis point is one hundredth of one percent, or 0.01 percent, used to state small rate and price differences precisely.",[11,155,156],{},"It avoids ambiguity when talking about fees, funding, and interest. One hundred basis points equal one percent.",[11,158,159,161],{},[20,160,22],{}," 1 bp = 0.01%. A 0.5% MMR is 50 basis points",{"title":25,"searchDepth":26,"depth":26,"links":163},[],{},"\u002Fglossary\u002Fbasis-point",[167,168],"Funding rate","Maintenance margin rate (MMR)",{"description":153},"U.S. SEC Investor.gov: Basis Point","https:\u002F\u002Fwww.investor.gov\u002Fintroduction-investing\u002Finvesting-basics\u002Fglossary\u002Fbasis-point","glossary\u002Fbasis-point","Basis point","Market mechanics and orders","lHtfIw82LVBvF_vl7EGwS3oMxE-x3dhRg6fobcDbtd4",{"id":177,"title":178,"body":179,"description":183,"extension":28,"meta":189,"navigation":30,"path":190,"related":191,"seo":195,"sourceName":196,"sourceUrl":197,"stem":198,"term":199,"theme":174,"__hash__":200},"glossary\u002Fglossary\u002Fbid-ask-spread.md","Bid Ask Spread",{"type":8,"value":180,"toc":187},[181,184],[11,182,183],{},"The bid-ask spread is the gap between the highest price buyers will pay (the bid) and the lowest price sellers will accept (the ask).",[11,185,186],{},"It is a real cost of trading, paid every time you cross it, and it widens in less liquid or fast-moving markets. Tighter spreads generally mean more liquid instruments.",{"title":25,"searchDepth":26,"depth":26,"links":188},[],{},"\u002Fglossary\u002Fbid-ask-spread",[192,193,194],"Slippage","Liquidity","Market order",{"description":183},"U.S. SEC (Investor.gov): Bid-Ask Spread","https:\u002F\u002Fwww.investor.gov\u002Fintroduction-investing\u002Finvesting-basics\u002Fglossary\u002Fbid-ask-spread","glossary\u002Fbid-ask-spread","Bid-ask spread","79ZXPi6WeJIRQt6kOUeakNAdvwIQVIoh35LW7wCQOp8",{"id":202,"title":203,"body":204,"description":208,"extension":28,"meta":214,"navigation":30,"path":215,"related":216,"seo":219,"sourceName":220,"sourceUrl":221,"stem":222,"term":223,"theme":174,"__hash__":224},"glossary\u002Fglossary\u002Fbitcoin-btc.md","Bitcoin Btc",{"type":8,"value":205,"toc":212},[206,209],[11,207,208],{},"Bitcoin (BTC) is a digital asset traded on spot and through derivatives, and a standard generic example used in the courses.",[11,210,211],{},"It trades with high volatility and is a common underlying for perpetual and futures contracts, where a standard futures contract represents 5 bitcoin. It illustrates leverage, funding, and liquidation clearly.",{"title":25,"searchDepth":26,"depth":26,"links":213},[],{},"\u002Fglossary\u002Fbitcoin-btc",[217,167,218],"Perpetual contract","Liquidation",{"description":208},"CME Rulebook Chapter 350: Bitcoin Futures","https:\u002F\u002Fwww.cmegroup.com\u002Frulebook\u002FCME\u002FIV\u002F350\u002F350.pdf","glossary\u002Fbitcoin-btc","Bitcoin (BTC)","VtAxNVy6oh2SEu282nkV5gvZmkwQW07GI5yI0c-TdLE",{"id":226,"title":227,"body":228,"description":232,"extension":28,"meta":238,"navigation":30,"path":239,"related":240,"seo":243,"sourceName":244,"sourceUrl":245,"stem":246,"term":247,"theme":248,"__hash__":249},"glossary\u002Fglossary\u002Fcapital-preservation.md","Capital Preservation",{"type":8,"value":229,"toc":236},[230,233],[11,231,232],{},"Capital preservation is protecting your trading balance from large losses so that you stay solvent and able to keep trading.",[11,234,235],{},"It comes before profit because losses are asymmetric: a big loss shrinks the base that every future gain must grow from. A trader who preserves capital survives long enough for an edge to play out.",{"title":25,"searchDepth":26,"depth":26,"links":237},[],{},"\u002Fglossary\u002Fcapital-preservation",[89,241,242],"Drawdown","Risk of ruin",{"description":232},"FINRA: Know Your Risk Tolerance","https:\u002F\u002Fwww.finra.org\u002Finvestors\u002Finsights\u002Fknow-your-risk-tolerance","glossary\u002Fcapital-preservation","Capital preservation","Risk and position sizing","2aET2zsrsp6XgGRvSJBlQQIM25HjObFil3n7ZmMcM8A",{"id":251,"title":252,"body":253,"description":257,"extension":28,"meta":263,"navigation":30,"path":264,"related":265,"seo":269,"sourceName":270,"sourceUrl":118,"stem":271,"term":272,"theme":120,"__hash__":273},"glossary\u002Fglossary\u002Fcash-settlement.md","Cash Settlement",{"type":8,"value":254,"toc":261},[255,258],[11,256,257],{},"Cash settlement means a contract is closed by paying the net price difference in cash rather than delivering the underlying asset.",[11,259,260],{},"It is used where physical delivery is impractical, such as a stock index, or where a reference rate is simpler, such as many crypto contracts. Speculators avoid delivery obligations entirely.",{"title":25,"searchDepth":26,"depth":26,"links":262},[],{},"\u002Fglossary\u002Fcash-settlement",[266,267,115,268],"Physical settlement","Mark-to-market","Stock index",{"description":257},"CFTC Glossary: Cash Settlement","glossary\u002Fcash-settlement","Cash settlement","aelFK97LBSyIZF-LSrHPHDfC9OdGw1Zww-8iD1-ShPQ",{"id":275,"title":276,"body":277,"description":281,"extension":28,"meta":287,"navigation":30,"path":288,"related":289,"seo":291,"sourceName":292,"sourceUrl":293,"stem":294,"term":295,"theme":174,"__hash__":296},"glossary\u002Fglossary\u002Fclearing-house.md","Clearing House",{"type":8,"value":278,"toc":285},[279,282],[11,280,281],{},"A clearing house, or central counterparty, sits between buyer and seller and guarantees that each side's obligations are met.",[11,283,284],{},"It manages counterparty risk by collecting margin and marking positions to market, which is why exchange-traded futures require ongoing margin. It is the reason a futures trade does not depend on the other party staying solvent.",{"title":25,"searchDepth":26,"depth":26,"links":286},[],{},"\u002Fglossary\u002Fclearing-house",[290,267,115],"Margin",{"description":281},"CFTC Glossary: Clearing Organization","https:\u002F\u002Fwww.cftc.gov\u002FLearnAndProtect\u002FEducationCenter\u002FCFTCGlossary\u002Fglossary_c.html","glossary\u002Fclearing-house","Clearing house","nHgK3Hz35_GcEV42oiy-hbDzZwTEX_6mAzujA_G2Oi4",{"id":298,"title":113,"body":299,"description":303,"extension":28,"meta":309,"navigation":30,"path":310,"related":311,"seo":312,"sourceName":313,"sourceUrl":118,"stem":314,"term":113,"theme":120,"__hash__":315},"glossary\u002Fglossary\u002Fcontango.md",{"type":8,"value":300,"toc":307},[301,304],[11,302,303],{},"Contango is when a futures price is above the expected spot price, giving an upward-sloping curve across expiries.",[11,305,306],{},"It often reflects the cost of holding the underlying (storage and financing). A contract in contango tends to lose value toward spot as it nears expiry.",{"title":25,"searchDepth":26,"depth":26,"links":308},[],{},"\u002Fglossary\u002Fcontango",[99,114,115],{"description":303},"CFTC Glossary: Contango","glossary\u002Fcontango","bmDmEeoNWxPFC8FI2s7uj0SGcINRy87k50DcejktRxk",{"id":317,"title":318,"body":319,"description":323,"extension":28,"meta":334,"navigation":30,"path":335,"related":336,"seo":341,"sourceName":342,"sourceUrl":343,"stem":344,"term":345,"theme":120,"__hash__":346},"glossary\u002Fglossary\u002Fcontract-size.md","Contract Size",{"type":8,"value":320,"toc":332},[321,324,327],[11,322,323],{},"Contract size, or contract unit, is how much of the underlying one contract represents.",[11,325,326],{},"It is why one contract is rarely one unit: a standard gold futures contract is 100 troy ounces and a standard Bitcoin futures contract is 5 bitcoin. The notional of one contract is the size times the current price.",[11,328,329,331],{},[20,330,22],{}," Notional of one contract = contract size x price",{"title":25,"searchDepth":26,"depth":26,"links":333},[],{},"\u002Fglossary\u002Fcontract-size",[337,338,339,340,223],"Multiplier","Notional value","Tick size","Gold",{"description":323},"CME Group: Gold Futures Contract Specs (COMEX)","https:\u002F\u002Fwww.cmegroup.com\u002Fmarkets\u002Fmetals\u002Fprecious\u002Fgold.contractSpecs.html","glossary\u002Fcontract-size","Contract size","rOYDUQKLZPW9U_xQbzRqLGuLoqlSByjTSqvSwNSpbM8",{"id":348,"title":349,"body":350,"description":354,"extension":28,"meta":360,"navigation":30,"path":361,"related":362,"seo":365,"sourceName":366,"sourceUrl":367,"stem":368,"term":349,"theme":41,"__hash__":369},"glossary\u002Fglossary\u002Fcorrelation.md","Correlation",{"type":8,"value":351,"toc":358},[352,355],[11,353,354],{},"Correlation measures how closely two instruments move together, on a scale from +1 (move together) to -1 (move oppositely), with 0 meaning no linear relationship.",[11,356,357],{},"It matters for risk because several highly correlated positions act as one large bet, so their stops can all trigger together. Budget risk by theme, not just by ticker.",{"title":25,"searchDepth":26,"depth":26,"links":359},[],{},"\u002Fglossary\u002Fcorrelation",[363,364,89],"Portfolio heat","Hedge",{"description":354},"NIST: Correlation","https:\u002F\u002Fwww.itl.nist.gov\u002Fdiv898\u002Fsoftware\u002Fdataplot\u002Frefman2\u002Fauxillar\u002Fcorrelat.htm","glossary\u002Fcorrelation","1UsBmmhhjgHXcSr3qUIbbY1Yj63RpErlxP9cltoyrIM",{"id":371,"title":372,"body":373,"description":377,"extension":28,"meta":383,"navigation":30,"path":384,"related":385,"seo":388,"sourceName":389,"sourceUrl":293,"stem":390,"term":391,"theme":392,"__hash__":393},"glossary\u002Fglossary\u002Fcross-margin.md","Cross Margin",{"type":8,"value":374,"toc":381},[375,378],[11,376,377],{},"Cross margin shares the whole account balance as collateral across positions, so spare equity can protect a losing trade from liquidation.",[11,379,380],{},"It can delay liquidation but puts the entire balance at risk if the trade keeps moving against you. It calculates liquidation from account-level equity rather than a single position's margin.",{"title":25,"searchDepth":26,"depth":26,"links":382},[],{},"\u002Fglossary\u002Fcross-margin",[386,387,218],"Isolated margin","Maintenance margin",{"description":377},"CFTC Glossary: Cross-Margining","glossary\u002Fcross-margin","Cross margin","Leverage, margin and liquidation","Ow7TyfWmZaegNcGuIXxJD63FRH_PMbXeCODJsUoOo7g",{"id":395,"title":396,"body":397,"description":401,"extension":28,"meta":407,"navigation":30,"path":408,"related":409,"seo":411,"sourceName":412,"sourceUrl":413,"stem":414,"term":396,"theme":120,"__hash__":415},"glossary\u002Fglossary\u002Fderivative.md","Derivative",{"type":8,"value":398,"toc":405},[399,402],[11,400,401],{},"A derivative is a contract whose value is derived from an underlying asset rather than the asset itself.",[11,403,404],{},"You hold an agreement whose payoff depends on the underlying's price, which lets you use leverage, hedge, or profit from falling prices without owning the asset. Futures and perpetual contracts are the derivatives covered by the Foundation courses.",{"title":25,"searchDepth":26,"depth":26,"links":406},[],{},"\u002Fglossary\u002Fderivative",[410,115,217],"Spot market",{"description":401},"CFTC Glossary: Derivative","https:\u002F\u002Fwww.cftc.gov\u002FLearnAndProtect\u002FEducationCenter\u002FCFTCGlossary\u002Fglossary_d.html","glossary\u002Fderivative","PYGO1Ch68Hqj06XOdisWe3Xm-f5PTCDqHM9tB1A84xU",{"id":417,"title":241,"body":418,"description":422,"extension":28,"meta":433,"navigation":30,"path":434,"related":435,"seo":438,"sourceName":439,"sourceUrl":440,"stem":441,"term":241,"theme":248,"__hash__":442},"glossary\u002Fglossary\u002Fdrawdown.md",{"type":8,"value":419,"toc":431},[420,423,426],[11,421,422],{},"A drawdown is the decline in account equity from a peak to a later trough, usually stated as a percentage.",[11,424,425],{},"It measures how much has been lost from the high-water mark and is a key gauge of how painful and survivable a strategy is. Because recovery is asymmetric, drawdowns must be actively contained.",[11,427,428,430],{},[20,429,22],{}," equity from $10,000 to $8,000 is a 20% drawdown",{"title":25,"searchDepth":26,"depth":26,"links":432},[],{},"\u002Fglossary\u002Fdrawdown",[436,437,242],"Maximum drawdown","Drawdown recovery",{"description":422},"Magdon-Ismail & Atiya (RPI): An Analysis of the Maximum Drawdown Risk Measure","https:\u002F\u002Fwww.cs.rpi.edu\u002F~magdon\u002Fps\u002Fjournal\u002Fdrawdown_RISK04.pdf","glossary\u002Fdrawdown","mDcKSUgBUCBaI54YnsR0jNvuirHxc1OVa_optHzS6kE",{"id":444,"title":445,"body":446,"description":450,"extension":28,"meta":461,"navigation":30,"path":462,"related":463,"seo":464,"sourceName":465,"sourceUrl":466,"stem":467,"term":437,"theme":248,"__hash__":468},"glossary\u002Fglossary\u002Fdrawdown-recovery.md","Drawdown Recovery",{"type":8,"value":447,"toc":459},[448,451,454],[11,449,450],{},"Drawdown recovery is the gain needed to return to a prior equity peak, and it is always larger than the loss because you recover from a smaller base.",[11,452,453],{},"A 10 percent loss needs about 11.1 percent to recover, a 50 percent loss needs 100 percent, and a 75 percent loss needs 300 percent. This asymmetry is why keeping losses small matters so much.",[11,455,456,458],{},[20,457,22],{}," Recovery = 1 \u002F (1 - drawdown) - 1",{"title":25,"searchDepth":26,"depth":26,"links":460},[],{},"\u002Fglossary\u002Fdrawdown-recovery",[241,436,247],{"description":450},"CFA Institute: Capital Preservation Is the Foundation of Wealth","https:\u002F\u002Frpc.cfainstitute.org\u002Fblogs\u002Fenterprising-investor\u002F2026\u002Fcapital-preservation-wealth","glossary\u002Fdrawdown-recovery","UISn7kOEIyeFJQBcjspKzxXsrzM7HNe54-Os0ClhAcI",{"id":470,"title":471,"body":472,"description":476,"extension":28,"meta":482,"navigation":30,"path":483,"related":484,"seo":488,"sourceName":489,"sourceUrl":490,"stem":491,"term":471,"theme":95,"__hash__":492},"glossary\u002Fglossary\u002Fedge.md","Edge",{"type":8,"value":473,"toc":480},[474,477],[11,475,476],{},"An edge is any repeatable reason a trading approach has positive expectancy over many trades.",[11,478,479],{},"Without an edge, costs and variance grind an account down over time. An edge must be traded enough times, at controlled risk, for the average to assert itself.",{"title":25,"searchDepth":26,"depth":26,"links":481},[],{},"\u002Fglossary\u002Fedge",[485,486,487],"Expectancy","Expected value","Win rate",{"description":476},"University of British Columbia, MATH 105 Probability: Expected Value","https:\u002F\u002Fblogs.ubc.ca\u002Fmath105\u002Fdiscrete-random-variables\u002Fexpected-value\u002F","glossary\u002Fedge","9AUZ4hqku0YLVH8yliSQQPSQEgui1XLlwsbyY1TiZ1s",{"id":494,"title":485,"body":495,"description":499,"extension":28,"meta":510,"navigation":30,"path":511,"related":512,"seo":516,"sourceName":489,"sourceUrl":490,"stem":517,"term":485,"theme":95,"__hash__":518},"glossary\u002Fglossary\u002Fexpectancy.md",{"type":8,"value":496,"toc":508},[497,500,503],[11,498,499],{},"Expectancy is the average profit or loss you can expect per trade, weighting wins and losses by how often each occurs.",[11,501,502],{},"It is the trading form of expected value and is the single number that tells you whether a system works. A system can win most trades and still lose money if its losses are large relative to its wins.",[11,504,505,507],{},[20,506,22],{}," Expectancy = (win% x average win) - (loss% x average loss)",{"title":25,"searchDepth":26,"depth":26,"links":509},[],{},"\u002Fglossary\u002Fexpectancy",[486,487,513,514,515],"Risk\u002Freward ratio","R-multiple","Sharpe ratio",{"description":499},"glossary\u002Fexpectancy","EX0yl0GSmDJPXue92QatUdhK1Fi-Ikfv2gb29Vg6EXQ",{"id":520,"title":521,"body":522,"description":526,"extension":28,"meta":537,"navigation":30,"path":538,"related":539,"seo":540,"sourceName":489,"sourceUrl":490,"stem":541,"term":486,"theme":95,"__hash__":542},"glossary\u002Fglossary\u002Fexpected-value.md","Expected Value",{"type":8,"value":523,"toc":535},[524,527,530],[11,525,526],{},"Expected value is the probability-weighted average outcome of a decision, found by multiplying each outcome by its probability and adding the results.",[11,528,529],{},"In trading it tells you the average result per trade over many trades. A positive expected value means the approach makes money on average; zero breaks even; negative loses.",[11,531,532,534],{},[20,533,22],{}," EV = sum of (probability x outcome)",{"title":25,"searchDepth":26,"depth":26,"links":536},[],{},"\u002Fglossary\u002Fexpected-value",[485,471,487],{"description":526},"glossary\u002Fexpected-value","-ZXmrgb5LEPpc7l4kMLQdBNUQgUlO0XhfZcLQWB9DWo",{"id":544,"title":545,"body":546,"description":550,"extension":28,"meta":556,"navigation":30,"path":557,"related":558,"seo":560,"sourceName":561,"sourceUrl":562,"stem":563,"term":545,"theme":120,"__hash__":564},"glossary\u002Fglossary\u002Fexpiry.md","Expiry",{"type":8,"value":547,"toc":554},[548,551],[11,549,550],{},"Expiry, or expiration, is the date on which a dated futures contract settles and ceases to exist.",[11,552,553],{},"Equity index futures commonly expire quarterly in March, June, September, and December. Perpetual contracts have no expiry and instead use a funding interval.",{"title":25,"searchDepth":26,"depth":26,"links":555},[],{},"\u002Fglossary\u002Fexpiry",[559,115,272],"Roll",{"description":550},"CME Group: E-mini S&P 500 Futures Contract Specs","https:\u002F\u002Fwww.cmegroup.com\u002Fmarkets\u002Fequities\u002Fsp\u002Fe-mini-sandp500.contractSpecs.html","glossary\u002Fexpiry","ViD9o5i-tUmApog1aBXeInyBaycImAF2gmHPXXLzLPo",{"id":566,"title":567,"body":568,"description":572,"extension":28,"meta":578,"navigation":30,"path":579,"related":580,"seo":583,"sourceName":584,"sourceUrl":585,"stem":586,"term":587,"theme":248,"__hash__":588},"glossary\u002Fglossary\u002Ffixed-fractional-position-sizing.md","Fixed Fractional Position Sizing",{"type":8,"value":569,"toc":576},[570,573],[11,571,572],{},"Fixed-fractional position sizing means always risking the same percentage of current equity on each trade.",[11,574,575],{},"Because the percentage is applied to current equity, you automatically trade smaller after losses and larger after gains, which cushions drawdowns and compounds wins. Recompute the size for every trade rather than reusing an old quantity.",{"title":25,"searchDepth":26,"depth":26,"links":577},[],{},"\u002Fglossary\u002Ffixed-fractional-position-sizing",[581,582,241],"The 1% rule","Position sizing",{"description":572},"Anderson (2003), Optimal f and Portfolio Return Optimisation in US Futures Markets (QUT Discussion Paper 133)","https:\u002F\u002Feprints.qut.edu.au\u002F511\u002F1\u002FAnderson_133.pdf","glossary\u002Ffixed-fractional-position-sizing","Fixed-fractional position sizing","Mz62_T9SEeatkrV-y04vK3RApVXG6KZz0pJA0xr15LM",{"id":590,"title":591,"body":592,"description":596,"extension":28,"meta":607,"navigation":30,"path":608,"related":609,"seo":611,"sourceName":612,"sourceUrl":613,"stem":614,"term":591,"theme":95,"__hash__":615},"glossary\u002Fglossary\u002Ffractional-kelly.md","Fractional Kelly",{"type":8,"value":593,"toc":605},[594,597,600],[11,595,596],{},"Fractional Kelly means staking a set fraction of the full Kelly amount, such as one half or one quarter, to reduce swings.",[11,598,599],{},"Real edges are estimated with error and full Kelly produces violent drawdowns, so a fraction sharply cuts volatility of returns. This is why practical risk rules like the 1 percent rule sit far below full Kelly.",[11,601,602,604],{},[20,603,22],{}," Common choices are 0.5 (half Kelly) or 0.25 (quarter Kelly)",{"title":25,"searchDepth":26,"depth":26,"links":606},[],{},"\u002Fglossary\u002Ffractional-kelly",[610,581,242],"Kelly Criterion",{"description":596},"Ziemba and MacLean: Using the Kelly Criterion for Investing","https:\u002F\u002Fwebhomes.maths.ed.ac.uk\u002Fmckinnon\u002Fblackouts\u002FStochOptFinanceAndEnergySpringer\u002FChap1_KellyZiemba.pdf","glossary\u002Ffractional-kelly","qHynESPH1Cyam6PJoQkoNyDkjx39u1suImDeO5m6b9o",{"id":617,"title":618,"body":619,"description":623,"extension":28,"meta":629,"navigation":30,"path":630,"related":631,"seo":632,"sourceName":633,"sourceUrl":634,"stem":635,"term":636,"theme":120,"__hash__":637},"glossary\u002Fglossary\u002Ffunding-interval.md","Funding Interval",{"type":8,"value":620,"toc":627},[621,624],[11,622,623],{},"The funding interval is how often funding is exchanged on a perpetual contract, most commonly every 8 hours.",[11,625,626],{},"Some venues use 4-, 2-, or 1-hour windows. You only pay or receive funding if you hold the position at the funding timestamp, so the interval matters for short-term trades.",{"title":25,"searchDepth":26,"depth":26,"links":628},[],{},"\u002Fglossary\u002Ffunding-interval",[167,217],{"description":623},"arXiv: Fundamentals of Perpetual Futures","https:\u002F\u002Farxiv.org\u002Fabs\u002F2212.06888","glossary\u002Ffunding-interval","Funding interval","WxB5DenX9OHTqoPOmfYuCf1MQ77u8a39n8fLwk1BHrU",{"id":639,"title":640,"body":641,"description":645,"extension":28,"meta":656,"navigation":30,"path":657,"related":658,"seo":661,"sourceName":633,"sourceUrl":634,"stem":662,"term":167,"theme":120,"__hash__":663},"glossary\u002Fglossary\u002Ffunding-rate.md","Funding Rate",{"type":8,"value":642,"toc":654},[643,646,649],[11,644,645],{},"A funding rate is a periodic payment exchanged directly between the long and short holders of a perpetual contract to keep its price near the underlying spot price.",[11,647,648],{},"It is not a fee to the exchange. When the perpetual trades above the index, longs pay shorts; when it trades below, shorts pay longs. It is charged on notional, so leverage multiplies its cost.",[11,650,651,653],{},[20,652,22],{}," 0.01% funding on $50,000 notional is $5 per period",{"title":25,"searchDepth":26,"depth":26,"links":655},[],{},"\u002Fglossary\u002Ffunding-rate",[636,217,659,660,173],"Mark price","Index price",{"description":645},"glossary\u002Ffunding-rate","pg43H7JE28OpUnt7gBC1MERrkdHRce9prZ7NtjhTVO0",{"id":665,"title":666,"body":667,"description":671,"extension":28,"meta":677,"navigation":30,"path":678,"related":679,"seo":680,"sourceName":681,"sourceUrl":682,"stem":683,"term":115,"theme":120,"__hash__":684},"glossary\u002Fglossary\u002Ffutures-contract.md","Futures Contract",{"type":8,"value":668,"toc":675},[669,672],[11,670,671],{},"A futures contract is a standardized legal agreement to buy or sell a set quantity of an underlying asset at a predetermined price on a specified future date.",[11,673,674],{},"It is an obligation for both parties unless closed early, and it is standardized by the exchange. Because its value comes from the underlying, a futures contract is a derivative.",{"title":25,"searchDepth":26,"depth":26,"links":676},[],{},"\u002Fglossary\u002Ffutures-contract",[396,217,267,272,295],{"description":671},"CFTC Glossary: Futures Contract","https:\u002F\u002Fwww.cftc.gov\u002FLearnAndProtect\u002FEducationCenter\u002FCFTCGlossary\u002Fglossary_f.html","glossary\u002Ffutures-contract","nr01AN-_wJt4kWQSF6fHOOwKQyMDvguzHyIZ3FjAfmw",{"id":686,"title":340,"body":687,"description":691,"extension":28,"meta":697,"navigation":30,"path":698,"related":699,"seo":700,"sourceName":701,"sourceUrl":343,"stem":702,"term":340,"theme":174,"__hash__":703},"glossary\u002Fglossary\u002Fgold.md",{"type":8,"value":688,"toc":695},[689,692],[11,690,691],{},"Gold is a precious metal traded worldwide as an asset, quoted per troy ounce, and a standard generic example used in the courses.",[11,693,694],{},"It trades on spot and through derivatives such as futures, where a standard contract represents 100 troy ounces. Its price is a common reference for worked examples.",{"title":25,"searchDepth":26,"depth":26,"links":696},[],{},"\u002Fglossary\u002Fgold",[345,266,115],{"description":691},"CME Group: Gold Futures Contract Specs","glossary\u002Fgold","sslRDgwY2ekzU07fHXgoWppFmoS-UuL1gDM1aSjaKCk",{"id":705,"title":364,"body":706,"description":710,"extension":28,"meta":716,"navigation":30,"path":717,"related":718,"seo":720,"sourceName":721,"sourceUrl":722,"stem":723,"term":364,"theme":174,"__hash__":724},"glossary\u002Fglossary\u002Fhedge.md",{"type":8,"value":707,"toc":714},[708,711],[11,709,710],{},"A hedge is a position taken to offset the risk of another position or holding.",[11,712,713],{},"A holder of an asset can short a related derivative so that a loss on the asset is offset by a gain on the hedge. Hedging reduces risk rather than seeking profit, and is the original economic purpose of futures.",{"title":25,"searchDepth":26,"depth":26,"links":715},[],{},"\u002Fglossary\u002Fhedge",[719,349,396],"Short selling",{"description":710},"U.S. CFTC: CFTC Glossary — Hedging","https:\u002F\u002Fwww.cftc.gov\u002FLearnAndProtect\u002FEducationCenter\u002FCFTCGlossary\u002Fglossary_h.html","glossary\u002Fhedge","TCqOZDWJfqZYCs3Q44JjiIN8IXYX_V_yRe64GqJyWl0",{"id":726,"title":727,"body":728,"description":732,"extension":28,"meta":738,"navigation":30,"path":739,"related":740,"seo":741,"sourceName":742,"sourceUrl":743,"stem":744,"term":660,"theme":120,"__hash__":745},"glossary\u002Fglossary\u002Findex-price.md","Index Price",{"type":8,"value":729,"toc":736},[730,733],[11,731,732],{},"The index price is an average of the underlying asset's spot price across several major markets, representing its external fair value.",[11,734,735],{},"It is deliberately hard to manipulate because it aggregates many venues. The mark price is built from the index price so that valuations and liquidations reflect the real market.",{"title":25,"searchDepth":26,"depth":26,"links":737},[],{},"\u002Fglossary\u002Findex-price",[659,410,217],{"description":732},"CF Benchmarks: CME CF Bitcoin Reference Rate (BRR)","https:\u002F\u002Fwww.cfbenchmarks.com\u002Fdata\u002Findices\u002FBRR","glossary\u002Findex-price","hlEk4e9Zb08z5xk4X0T8DIOI6NDMioDyLbmMTj1phCI",{"id":747,"title":748,"body":749,"description":753,"extension":28,"meta":764,"navigation":30,"path":765,"related":766,"seo":768,"sourceName":769,"sourceUrl":770,"stem":771,"term":772,"theme":392,"__hash__":773},"glossary\u002Fglossary\u002Finitial-margin.md","Initial Margin",{"type":8,"value":750,"toc":762},[751,754,757],[11,752,753],{},"Initial margin is the amount required to open a leveraged position.",[11,755,756],{},"It is the inverse of leverage: at 10x you post 10 percent of notional, at 100x just 1 percent. Higher leverage lowers the deposit but shrinks the buffer before trouble.",[11,758,759,761],{},[20,760,22],{}," Initial margin = notional \u002F leverage",{"title":25,"searchDepth":26,"depth":26,"links":763},[],{},"\u002Fglossary\u002Finitial-margin",[387,767,290],"Leverage",{"description":753},"FINRA: Margin Regulation","https:\u002F\u002Fwww.finra.org\u002Frules-guidance\u002Fkey-topics\u002Fmargin-accounts","glossary\u002Finitial-margin","Initial margin","ZpFrPr8fUuvRUXmq9RZc-AmSu7f6iuU77rBUhAFLujk",{"id":775,"title":776,"body":777,"description":781,"extension":28,"meta":787,"navigation":30,"path":788,"related":789,"seo":791,"sourceName":792,"sourceUrl":793,"stem":794,"term":386,"theme":392,"__hash__":795},"glossary\u002Fglossary\u002Fisolated-margin.md","Isolated Margin",{"type":8,"value":778,"toc":785},[779,782],[11,780,781],{},"Isolated margin assigns a fixed amount of margin to one position, so the most you can lose on it is that assigned margin.",[11,783,784],{},"It ring-fences risk to a single trade rather than the whole account. Adding margin to an isolated position moves its liquidation price further away.",{"title":25,"searchDepth":26,"depth":26,"links":786},[],{},"\u002Fglossary\u002Fisolated-margin",[391,387,790],"Liquidation price",{"description":781},"CME Group Education: Margin — Know What's Needed","https:\u002F\u002Fwww.cmegroup.com\u002Feducation\u002Fcourses\u002Fintroduction-to-futures\u002Fmargin-know-what-is-needed.html","glossary\u002Fisolated-margin","efy_tB03MFJL-vMuFcfMflkais2bu7XWSObJGflSTe8",{"id":797,"title":610,"body":798,"description":802,"extension":28,"meta":813,"navigation":30,"path":814,"related":815,"seo":816,"sourceName":817,"sourceUrl":818,"stem":819,"term":610,"theme":95,"__hash__":820},"glossary\u002Fglossary\u002Fkelly-criterion.md",{"type":8,"value":799,"toc":811},[800,803,806],[11,801,802],{},"The Kelly Criterion is a formula for the fraction of capital to stake that maximizes long-run growth given a known edge.",[11,804,805],{},"Published by John L. Kelly Jr. in 1956, it balances growth against the risk of ruin. Full Kelly is very aggressive, so most traders use a fraction of it.",[11,807,808,810],{},[20,809,22],{}," Trading form: Kelly % = W - (1 - W) \u002F R, with W the win probability and R the reward-to-risk",{"title":25,"searchDepth":26,"depth":26,"links":812},[],{},"\u002Fglossary\u002Fkelly-criterion",[591,485,242],{"description":802},"J. L. Kelly Jr. (1956), Bell System Technical Journal: A New Interpretation of Information Rate","https:\u002F\u002Fwww.princeton.edu\u002F~wbialek\u002Frome\u002Frefs\u002Fkelly_56.pdf","glossary\u002Fkelly-criterion","W-09g6zAq7hWgQrYZ4Ieh79VotZli17kgKb3YrOemyE",{"id":822,"title":767,"body":823,"description":827,"extension":28,"meta":838,"navigation":30,"path":839,"related":840,"seo":841,"sourceName":842,"sourceUrl":843,"stem":844,"term":767,"theme":392,"__hash__":845},"glossary\u002Fglossary\u002Fleverage.md",{"type":8,"value":824,"toc":836},[825,828,831],[11,826,827],{},"Leverage is controlling a position larger than your cash by borrowing the difference, which multiplies both gains and losses relative to your capital.",[11,829,830],{},"It does not change the asset's own percentage move, only how large that move is relative to your money. A 5 percent move in the asset becomes a 50 percent move in your equity at 10x leverage.",[11,832,833,835],{},[20,834,22],{}," Leverage = notional \u002F margin. $1,000 controlling $10,000 is 10x",{"title":25,"searchDepth":26,"depth":26,"links":837},[],{},"\u002Fglossary\u002Fleverage",[290,338,218],{"description":827},"U.S. SEC (Investor.gov): Leveraged Investing Strategies","https:\u002F\u002Fwww.investor.gov\u002Fintroduction-investing\u002Fgeneral-resources\u002Fnews-alerts\u002Falerts-bulletins\u002Finvestor-bulletins\u002Fleveraged-investing-strategies-know-risks-using-these-advanced-investment-tools","glossary\u002Fleverage","4zz5LboxYRZLQYfhhF8hnUt_rSMDZODnR0t7N4aoZds",{"id":847,"title":848,"body":849,"description":853,"extension":28,"meta":859,"navigation":30,"path":860,"related":861,"seo":863,"sourceName":864,"sourceUrl":865,"stem":866,"term":867,"theme":174,"__hash__":868},"glossary\u002Fglossary\u002Flimit-order.md","Limit Order",{"type":8,"value":850,"toc":857},[851,854],[11,852,853],{},"A limit order is an instruction to buy or sell only at a specified price or better.",[11,855,856],{},"It controls the price you get but may not fill if the market never reaches your limit. It trades certainty of price for uncertainty of execution.",{"title":25,"searchDepth":26,"depth":26,"links":858},[],{},"\u002Fglossary\u002Flimit-order",[194,862,199],"Stop order",{"description":853},"U.S. SEC (Investor.gov): Limit Orders","https:\u002F\u002Fwww.investor.gov\u002Fintroduction-investing\u002Finvesting-basics\u002Fglossary\u002Flimit-orders","glossary\u002Flimit-order","Limit order","877WI-QRXaiwAvlt0EgoZA7LD0Xk16TqrIFmLNnxn5o",{"id":870,"title":218,"body":871,"description":875,"extension":28,"meta":881,"navigation":30,"path":882,"related":883,"seo":885,"sourceName":886,"sourceUrl":887,"stem":888,"term":218,"theme":392,"__hash__":889},"glossary\u002Fglossary\u002Fliquidation.md",{"type":8,"value":872,"toc":879},[873,876],[11,874,875],{},"Liquidation is the forced closure of a leveraged position by the venue when losses draw your margin down to the maintenance level.",[11,877,878],{},"The platform closes the position so the loss does not exceed your posted margin, usually with a fee and at a poor moment. Beginners are often liquidated not because they were wrong about direction but because leverage left no room for a normal move.",{"title":25,"searchDepth":26,"depth":26,"links":880},[],{},"\u002Fglossary\u002Fliquidation",[790,387,767,884],"Margin call",{"description":875},"arXiv: Hedging with Bitcoin Futures","https:\u002F\u002Farxiv.org\u002Fabs\u002F2101.01261","glossary\u002Fliquidation","PBeiRxFQ3CUMNKCiPMEiuV2q97yNAlVLa6kryDn7Dvc",{"id":891,"title":892,"body":893,"description":897,"extension":28,"meta":908,"navigation":30,"path":909,"related":910,"seo":911,"sourceName":912,"sourceUrl":913,"stem":914,"term":790,"theme":392,"__hash__":915},"glossary\u002Fglossary\u002Fliquidation-price.md","Liquidation Price",{"type":8,"value":894,"toc":906},[895,898,901],[11,896,897],{},"The liquidation price is the market price at which a leveraged position is force-closed because its remaining margin can no longer support it.",[11,899,900],{},"Higher leverage moves it closer to the entry price, so a smaller adverse move triggers it. A protective stop set inside the liquidation price lets you exit on your own terms first.",[11,902,903,905],{},[20,904,22],{}," Simplified long: entry x (1 - 1\u002Fleverage + MMR); short flips the signs",{"title":25,"searchDepth":26,"depth":26,"links":907},[],{},"\u002Fglossary\u002Fliquidation-price",[218,168,767],{"description":897},"arXiv: Liquidation, Leverage and Optimal Margin in Bitcoin Futures Markets","https:\u002F\u002Farxiv.org\u002Fabs\u002F2102.04591","glossary\u002Fliquidation-price","uwAeejMm8xYoMnQ4AVNkRrpx0qnJNN5gTG8Y8vR9gug",{"id":917,"title":193,"body":918,"description":922,"extension":28,"meta":928,"navigation":30,"path":929,"related":930,"seo":932,"sourceName":933,"sourceUrl":934,"stem":935,"term":193,"theme":174,"__hash__":936},"glossary\u002Fglossary\u002Fliquidity.md",{"type":8,"value":919,"toc":926},[920,923],[11,921,922],{},"Liquidity is how easily an instrument can be traded in size without moving its price much.",[11,924,925],{},"Liquid markets have tight spreads and deep order books, so orders fill near the quoted price. Thin markets produce wider spreads, more slippage, and sharper price spikes.",{"title":25,"searchDepth":26,"depth":26,"links":927},[],{},"\u002Fglossary\u002Fliquidity",[199,192,931],"Open interest",{"description":922},"U.S. SEC (Investor.gov): Liquidity (or Marketability)","https:\u002F\u002Fwww.investor.gov\u002Fintroduction-investing\u002Finvesting-basics\u002Fglossary\u002Fliquidity-or-marketability","glossary\u002Fliquidity","BpBl_12n8KRaQJrMqbezymKB29334pg-KXBvOTNZftE",{"id":938,"title":939,"body":940,"description":944,"extension":28,"meta":950,"navigation":30,"path":951,"related":952,"seo":953,"sourceName":954,"sourceUrl":955,"stem":956,"term":957,"theme":174,"__hash__":958},"glossary\u002Fglossary\u002Flong-position.md","Long Position",{"type":8,"value":941,"toc":948},[942,945],[11,943,944],{},"A long position profits when the price of the instrument rises and loses when it falls.",[11,946,947],{},"Going long can mean owning the asset on spot or buying a derivative that gains with the price. It is the default way most beginners think about a trade.",{"title":25,"searchDepth":26,"depth":26,"links":949},[],{},"\u002Fglossary\u002Flong-position",[719,582,115],{"description":944},"U.S. SEC (Investor.gov): Stock Purchases and Sales (Long and Short)","https:\u002F\u002Fwww.investor.gov\u002Fintroduction-investing\u002Finvesting-basics\u002Fhow-stock-markets-work\u002Fstock-purchases-and-sales-long-and","glossary\u002Flong-position","Long position","dTMaUnMw_RSknGSmlmk9azsbzjgCM7OvbpDdrv8D6Yo",{"id":960,"title":961,"body":962,"description":966,"extension":28,"meta":972,"navigation":30,"path":973,"related":974,"seo":975,"sourceName":976,"sourceUrl":977,"stem":978,"term":387,"theme":392,"__hash__":979},"glossary\u002Fglossary\u002Fmaintenance-margin.md","Maintenance Margin",{"type":8,"value":963,"toc":970},[964,967],[11,965,966],{},"Maintenance margin is the minimum equity you must keep in a position to hold it open.",[11,968,969],{},"It is smaller than the initial margin. If losses erode your equity to the maintenance level, you get a margin call or the position is liquidated.",{"title":25,"searchDepth":26,"depth":26,"links":971},[],{},"\u002Fglossary\u002Fmaintenance-margin",[772,884,218,168],{"description":966},"SEC Investor.gov: Understanding Margin Accounts","https:\u002F\u002Fwww.investor.gov\u002Fintroduction-investing\u002Fgeneral-resources\u002Fnews-alerts\u002Falerts-bulletins\u002Finvestor-bulletins-29","glossary\u002Fmaintenance-margin","98qjEPt4aKMPH9ejrWcyW_3CuFuFW5RY4BGyd2BVl9M",{"id":981,"title":982,"body":983,"description":987,"extension":28,"meta":998,"navigation":30,"path":999,"related":1000,"seo":1001,"sourceName":1002,"sourceUrl":1003,"stem":1004,"term":168,"theme":392,"__hash__":1005},"glossary\u002Fglossary\u002Fmaintenance-margin-rate-mmr.md","Maintenance Margin Rate Mmr",{"type":8,"value":984,"toc":996},[985,988,991],[11,986,987],{},"The maintenance margin rate (MMR) is the maintenance margin expressed as a percentage of the position's notional value.",[11,989,990],{},"It feeds directly into the liquidation price and typically rises for larger positions under tiered rules. A small MMR such as 0.5 percent still moves the liquidation trigger closer to entry.",[11,992,993,995],{},[20,994,22],{}," Maintenance margin = MMR x notional",{"title":25,"searchDepth":26,"depth":26,"links":997},[],{},"\u002Fglossary\u002Fmaintenance-margin-rate-mmr",[387,790,338,173],{"description":987},"FINRA Rule 4210: Margin Requirements","https:\u002F\u002Fwww.finra.org\u002Frules-guidance\u002Frulebooks\u002Ffinra-rules\u002F4210","glossary\u002Fmaintenance-margin-rate-mmr","1SjpmztLoocOlrsM_oR8Xo8YSY6sd7-RP91KfpgtEok",{"id":1007,"title":290,"body":1008,"description":1012,"extension":28,"meta":1018,"navigation":30,"path":1019,"related":1020,"seo":1021,"sourceName":1022,"sourceUrl":1023,"stem":1024,"term":290,"theme":392,"__hash__":1025},"glossary\u002Fglossary\u002Fmargin.md",{"type":8,"value":1009,"toc":1016},[1010,1013],[11,1011,1012],{},"Margin is the cash you post as a good-faith deposit to open and hold a leveraged position.",[11,1014,1015],{},"It is not the cost of the position but a deposit against losses. Two levels matter: initial margin to open, and maintenance margin to keep the position open.",{"title":25,"searchDepth":26,"depth":26,"links":1017},[],{},"\u002Fglossary\u002Fmargin",[772,387,884,767,295],{"description":1012},"CME Group: Margin: Know What's Needed","https:\u002F\u002Fwww.cmegroup.com\u002Feducation\u002Fcourses\u002Fintroduction-to-futures\u002Fmargin-know-what-is-needed","glossary\u002Fmargin","72U4sK9YF_y6C3V3oD5JXA3T2FW8gxngECin8LKZfhQ",{"id":1027,"title":1028,"body":1029,"description":1033,"extension":28,"meta":1039,"navigation":30,"path":1040,"related":1041,"seo":1042,"sourceName":976,"sourceUrl":977,"stem":1043,"term":884,"theme":392,"__hash__":1044},"glossary\u002Fglossary\u002Fmargin-call.md","Margin Call",{"type":8,"value":1030,"toc":1037},[1031,1034],[11,1032,1033],{},"A margin call is a demand to add funds when your equity falls below the maintenance margin, or the position may be closed.",[11,1035,1036],{},"It is the warning stage before forced liquidation on many venues. Keeping spare margin rather than posting the bare minimum reduces the chance of one.",{"title":25,"searchDepth":26,"depth":26,"links":1038},[],{},"\u002Fglossary\u002Fmargin-call",[387,218,290],{"description":1033},"glossary\u002Fmargin-call","IYoQNPTOnFBohUjneU9ZBu1wkJTSo2hWX6XscVynKEo",{"id":1046,"title":1047,"body":1048,"description":1052,"extension":28,"meta":1058,"navigation":30,"path":1059,"related":1060,"seo":1061,"sourceName":1062,"sourceUrl":1063,"stem":1064,"term":659,"theme":120,"__hash__":1065},"glossary\u002Fglossary\u002Fmark-price.md","Mark Price",{"type":8,"value":1049,"toc":1056},[1050,1053],[11,1051,1052],{},"The mark price is a contract's fair-value price, derived from the index price plus a smoothed basis, used for unrealized profit and loss, funding, and liquidations.",[11,1054,1055],{},"Using the mark price rather than the last traded price to trigger liquidations protects traders from a brief, thin-liquidity price spike that no real market supports. Always know which price your venue uses for liquidation.",{"title":25,"searchDepth":26,"depth":26,"links":1057},[],{},"\u002Fglossary\u002Fmark-price",[660,218,167,217],{"description":1052},"arXiv 2310.11771: Perpetual Futures Pricing (Ackerer, Hugonnier & Jermann)","https:\u002F\u002Farxiv.org\u002Fabs\u002F2310.11771","glossary\u002Fmark-price","1cg6QrdBt9PknmeUnG-i9M7KhUIlrLgzfgxnkTP2Eyc",{"id":1067,"title":1068,"body":1069,"description":1073,"extension":28,"meta":1079,"navigation":30,"path":1080,"related":1081,"seo":1082,"sourceName":1083,"sourceUrl":1084,"stem":1085,"term":267,"theme":120,"__hash__":1086},"glossary\u002Fglossary\u002Fmark-to-market.md","Mark To Market",{"type":8,"value":1070,"toc":1077},[1071,1074],[11,1072,1073],{},"Mark-to-market means valuing a position at its current market price, with gains and losses credited or debited to the margin account as prices move rather than only at the end.",[11,1075,1076],{},"For futures this happens daily or continuously, which is why margin must be maintained the whole time an unrealized loss becomes a real draw on the account.",{"title":25,"searchDepth":26,"depth":26,"links":1078},[],{},"\u002Fglossary\u002Fmark-to-market",[290,115,272],{"description":1073},"CME Group: Mark-to-Market (Introduction to Futures)","https:\u002F\u002Fwww.cmegroup.com\u002Feducation\u002Fcourses\u002Fintroduction-to-futures\u002Fmark-to-market","glossary\u002Fmark-to-market","8roecr5brkRQlMHfUwPjPXLb52qZaTXxmojKQKaqnt0",{"id":1088,"title":1089,"body":1090,"description":1094,"extension":28,"meta":1100,"navigation":30,"path":1101,"related":1102,"seo":1103,"sourceName":1104,"sourceUrl":1105,"stem":1106,"term":194,"theme":174,"__hash__":1107},"glossary\u002Fglossary\u002Fmarket-order.md","Market Order",{"type":8,"value":1091,"toc":1098},[1092,1095],[11,1093,1094],{},"A market order is an instruction to buy or sell immediately at the best price currently available.",[11,1096,1097],{},"It prioritizes speed of execution over price, so in a fast or thin market the fill can differ from the last quote. That difference is slippage.",{"title":25,"searchDepth":26,"depth":26,"links":1099},[],{},"\u002Fglossary\u002Fmarket-order",[867,192,199],{"description":1094},"U.S. SEC (Investor.gov): Market Order","https:\u002F\u002Fwww.investor.gov\u002Fintroduction-investing\u002Finvesting-basics\u002Fglossary\u002Fmarket-order","glossary\u002Fmarket-order","lyJNu_5Zdd70D_DYJdj8T2o-KtLwNJ-By7Bh2Ewcz6k",{"id":1109,"title":87,"body":1110,"description":1114,"extension":28,"meta":1120,"navigation":30,"path":1121,"related":1122,"seo":1123,"sourceName":1124,"sourceUrl":1125,"stem":1126,"term":87,"theme":95,"__hash__":1127},"glossary\u002Fglossary\u002Fmartingale.md",{"type":8,"value":1111,"toc":1118},[1112,1115],[11,1113,1114],{},"A martingale is a betting approach that doubles the stake after each loss, aiming for one win to recover everything, and it tends toward ruin.",[11,1116,1117],{},"It maximizes exposure exactly when you are most wrong, so one long losing run bankrupts the account. Adding to losers to lower an average price is a common trading version of the same mistake.",{"title":25,"searchDepth":26,"depth":26,"links":1119},[],{},"\u002Fglossary\u002Fmartingale",[94,242,587],{"description":1114},"Grinstead and Snell, Introduction to Probability (American Mathematical Society)","https:\u002F\u002Fmath.dartmouth.edu\u002F~prob\u002Fprob\u002Fprob.pdf","glossary\u002Fmartingale","pZhNJDTHGHT1nGQqKLQiOSNAg0KBMRO3ClMJum3oja4",{"id":1129,"title":1130,"body":1131,"description":1135,"extension":28,"meta":1141,"navigation":30,"path":1142,"related":1143,"seo":1144,"sourceName":439,"sourceUrl":440,"stem":1145,"term":436,"theme":248,"__hash__":1146},"glossary\u002Fglossary\u002Fmaximum-drawdown.md","Maximum Drawdown",{"type":8,"value":1132,"toc":1139},[1133,1136],[11,1134,1135],{},"Maximum drawdown is the largest peak-to-trough percentage decline in account equity over a period.",[11,1137,1138],{},"It is the single best measure of worst-case pain for a strategy and of how survivable it is. A strategy with a smaller maximum drawdown is generally easier to hold through.",{"title":25,"searchDepth":26,"depth":26,"links":1140},[],{},"\u002Fglossary\u002Fmaximum-drawdown",[241,437,89],{"description":1135},"glossary\u002Fmaximum-drawdown","2FuxMabb6-l06hsYZmOyRiMO-m8FEj5rbnp4NkME5T8",{"id":1148,"title":337,"body":1149,"description":1153,"extension":28,"meta":1164,"navigation":30,"path":1165,"related":1166,"seo":1168,"sourceName":561,"sourceUrl":562,"stem":1169,"term":337,"theme":120,"__hash__":1170},"glossary\u002Fglossary\u002Fmultiplier.md",{"type":8,"value":1150,"toc":1162},[1151,1154,1157],[11,1152,1153],{},"A multiplier is the dollar value assigned to each index point for a financial futures contract, used instead of a physical quantity.",[11,1155,1156],{},"A standard stock-index future uses a 50 dollar multiplier, so at an index of 5,000 one contract is worth 250,000 dollars of exposure and each one-point move is worth 50 dollars.",[11,1158,1159,1161],{},[20,1160,22],{}," Notional = index level x multiplier",{"title":25,"searchDepth":26,"depth":26,"links":1163},[],{},"\u002Fglossary\u002Fmultiplier",[345,1167,338,268],"Tick value",{"description":1153},"glossary\u002Fmultiplier","J6IhS8g0fzuFOi-rGehqbnA3FMRR47h4dJDnT9G2kqI",{"id":1172,"title":1173,"body":1174,"description":1178,"extension":28,"meta":1184,"navigation":30,"path":1185,"related":1186,"seo":1187,"sourceName":1188,"sourceUrl":1189,"stem":1190,"term":1191,"theme":41,"__hash__":1192},"glossary\u002Fglossary\u002Fnormal-distribution.md","Normal Distribution",{"type":8,"value":1175,"toc":1182},[1176,1179],[11,1177,1178],{},"A normal distribution is a symmetric bell-shaped probability curve often used to model returns, where most outcomes cluster near the mean.",[11,1180,1181],{},"It is a useful simplification, but real market returns have fatter tails, meaning extreme moves happen more often than a normal curve predicts. Never assume large moves are impossible just because they are rare on the curve.",{"title":25,"searchDepth":26,"depth":26,"links":1183},[],{},"\u002Fglossary\u002Fnormal-distribution",[34,33,35],{"description":1178},"NIST\u002FSEMATECH e-Handbook of Statistical Methods: Normal Distribution","https:\u002F\u002Fwww.itl.nist.gov\u002Fdiv898\u002Fhandbook\u002Feda\u002Fsection3\u002Feda3661.htm","glossary\u002Fnormal-distribution","Normal distribution","auTuZNdPcpBF99sQOo_gyxKKqweiVLKKDZMQPHHmDEs",{"id":1194,"title":1195,"body":1196,"description":1200,"extension":28,"meta":1211,"navigation":30,"path":1212,"related":1213,"seo":1215,"sourceName":1216,"sourceUrl":1217,"stem":1218,"term":338,"theme":392,"__hash__":1219},"glossary\u002Fglossary\u002Fnotional-value.md","Notional Value",{"type":8,"value":1197,"toc":1209},[1198,1201,1204],[11,1199,1200],{},"Notional value is the full size of the position you control, calculated for a linear contract as quantity times price.",[11,1202,1203],{},"It is the exposure the contract gives you, which is much larger than the margin posted under leverage. Funding and many fees are charged on notional, not on your margin.",[11,1205,1206,1208],{},[20,1207,22],{}," Notional = quantity x price. 1 unit at $60,000 is $60,000 notional",{"title":25,"searchDepth":26,"depth":26,"links":1210},[],{},"\u002Fglossary\u002Fnotional-value",[767,290,1214],"Notional versus risk",{"description":1200},"CME Group: About Contract Notional Value","https:\u002F\u002Fwww.cmegroup.com\u002Feducation\u002Fcourses\u002Fintroduction-to-futures\u002Fabout-contract-notional-value","glossary\u002Fnotional-value","xWTVBTTDZWsFovgZBPDs-duo_XuA1anAWPv-FjwP2uY",{"id":1221,"title":1222,"body":1223,"description":1227,"extension":28,"meta":1238,"navigation":30,"path":1239,"related":1240,"seo":1241,"sourceName":1242,"sourceUrl":1243,"stem":1244,"term":1214,"theme":248,"__hash__":1245},"glossary\u002Fglossary\u002Fnotional-versus-risk.md","Notional Versus Risk",{"type":8,"value":1224,"toc":1236},[1225,1228,1231],[11,1226,1227],{},"Notional is the full market value of a position, while risk is only the amount lost if the stop is hit; they are not the same.",[11,1229,1230],{},"A $10,000 position with a stop 5 percent away has $10,000 of notional but only $500 of risk. Always size on risk, not notional, so leverage does not trick you.",[11,1232,1233,1235],{},[20,1234,22],{}," Risk = stop distance x size, not the full notional",{"title":25,"searchDepth":26,"depth":26,"links":1237},[],{},"\u002Fglossary\u002Fnotional-versus-risk",[338,767,582],{"description":1227},"BIS Statistics Glossary: Notional amount outstanding","https:\u002F\u002Fdata.bis.org\u002Fhelp\u002Fglossary?item=notional+amount+outstanding","glossary\u002Fnotional-versus-risk","H0Wey6kJvjFDTnnd9ZFMwOhRk20xw2FRKaBUSi8hbBE",{"id":1247,"title":1248,"body":1249,"description":1253,"extension":28,"meta":1259,"navigation":30,"path":1260,"related":1261,"seo":1262,"sourceName":1263,"sourceUrl":1264,"stem":1265,"term":931,"theme":174,"__hash__":1266},"glossary\u002Fglossary\u002Fopen-interest.md","Open Interest",{"type":8,"value":1250,"toc":1257},[1251,1254],[11,1252,1253],{},"Open interest is the total number of derivative contracts that are currently open and not yet closed or settled.",[11,1255,1256],{},"It gauges how much capital is committed to a contract and, alongside volume, hints at participation and liquidity. Rising open interest means new positions are being opened.",{"title":25,"searchDepth":26,"depth":26,"links":1258},[],{},"\u002Fglossary\u002Fopen-interest",[193,115,217],{"description":1253},"U.S. CFTC: CFTC Glossary — Open Interest","https:\u002F\u002Fwww.cftc.gov\u002FConsumerProtection\u002FEducationCenter\u002FCFTCGlossary\u002Fglossary_o.html","glossary\u002Fopen-interest","j8qscRezCWoA4hnkyFWZ-1QS7DSadFVUpVrBbnuotLE",{"id":1268,"title":1269,"body":1270,"description":1274,"extension":28,"meta":1280,"navigation":30,"path":1281,"related":1282,"seo":1283,"sourceName":633,"sourceUrl":634,"stem":1284,"term":217,"theme":120,"__hash__":1285},"glossary\u002Fglossary\u002Fperpetual-contract.md","Perpetual Contract",{"type":8,"value":1271,"toc":1278},[1272,1275],[11,1273,1274],{},"A perpetual contract, or perpetual swap, is a futures-style contract with no expiry date, so it can be held indefinitely.",[11,1276,1277],{},"With no expiry to pull its price toward spot, it uses a funding rate and a mark price system to stay anchored to the underlying. Perpetuals are the dominant instrument in crypto derivatives.",{"title":25,"searchDepth":26,"depth":26,"links":1279},[],{},"\u002Fglossary\u002Fperpetual-contract",[115,167,659,660,340,223],{"description":1274},"glossary\u002Fperpetual-contract","UIfsx-cDno44g18fABtn9k3_PQL8YDIP_nQ4xqMifow",{"id":1287,"title":1288,"body":1289,"description":1293,"extension":28,"meta":1299,"navigation":30,"path":1300,"related":1301,"seo":1302,"sourceName":1303,"sourceUrl":118,"stem":1304,"term":266,"theme":120,"__hash__":1305},"glossary\u002Fglossary\u002Fphysical-settlement.md","Physical Settlement",{"type":8,"value":1290,"toc":1297},[1291,1294],[11,1292,1293],{},"Physical settlement means a contract is closed by delivering the actual underlying asset, such as troy ounces of gold.",[11,1295,1296],{},"Speculators in physically settled contracts must close or roll before delivery to avoid receiving the commodity. It is common in commodity futures.",{"title":25,"searchDepth":26,"depth":26,"links":1298},[],{},"\u002Fglossary\u002Fphysical-settlement",[272,345,115,340,223],{"description":1293},"CFTC Glossary: Delivery","glossary\u002Fphysical-settlement","5yHY1OZ4cL7Vl_5PQkhuMJK36luIPTebNLyytfgTGoA",{"id":1307,"title":1308,"body":1309,"description":1313,"extension":28,"meta":1324,"navigation":30,"path":1325,"related":1326,"seo":1328,"sourceName":1329,"sourceUrl":1330,"stem":1331,"term":363,"theme":248,"__hash__":1332},"glossary\u002Fglossary\u002Fportfolio-heat.md","Portfolio Heat",{"type":8,"value":1310,"toc":1322},[1311,1314,1317],[11,1312,1313],{},"Portfolio heat is the total risk across all open positions at once, not just the risk on any one trade.",[11,1315,1316],{},"Six unrelated positions each risking 1 percent put 6 percent of the account at risk together, and correlated positions are far more likely to all hit their stops in a single move, so the full 6 percent can be lost at once. Prudent traders cap total open risk (commonly 3 to 6 percent) on top of the per-trade limit.",[11,1318,1319,1321],{},[20,1320,22],{}," 8 correlated 1% trades can lose 8% in one move",{"title":25,"searchDepth":26,"depth":26,"links":1323},[],{},"\u002Fglossary\u002Fportfolio-heat",[1327,349,89],"Risk per trade",{"description":1313},"CFA Institute: Measuring and Managing Market Risk","https:\u002F\u002Fwww.cfainstitute.org\u002Finsights\u002Fprofessional-learning\u002Frefresher-readings\u002F2026\u002Fmeasuring-managing-market-risk","glossary\u002Fportfolio-heat","DbWZLcPuwUahDtN8_SZWtvV6BAEK2afFAF-2CfpTJqY",{"id":1334,"title":1335,"body":1336,"description":1340,"extension":28,"meta":1351,"navigation":30,"path":1352,"related":1353,"seo":1354,"sourceName":584,"sourceUrl":585,"stem":1355,"term":1356,"theme":248,"__hash__":1357},"glossary\u002Fglossary\u002Fposition-size-formula.md","Position Size Formula",{"type":8,"value":1337,"toc":1349},[1338,1341,1344],[11,1339,1340],{},"The position size formula converts a dollar risk and a stop distance into a quantity: size equals risk divided by stop distance.",[11,1342,1343],{},"A wider stop forces a smaller position and a tighter stop allows a larger one, while the dollar risk stays the same. The market's structure sets the stop distance, and the stop distance sets the size.",[11,1345,1346,1348],{},[20,1347,22],{}," Position size = account risk \u002F stop distance. Risk $400, stop $2 away gives 200 units",{"title":25,"searchDepth":26,"depth":26,"links":1350},[],{},"\u002Fglossary\u002Fposition-size-formula",[582,88,1327],{"description":1340},"glossary\u002Fposition-size-formula","Position size formula","42pGVn-WC9Cb_THduoAikPedsIqGVxg-6iMcCbIG51A",{"id":1359,"title":1360,"body":1361,"description":1365,"extension":28,"meta":1376,"navigation":30,"path":1377,"related":1378,"seo":1379,"sourceName":1380,"sourceUrl":1381,"stem":1382,"term":582,"theme":248,"__hash__":1383},"glossary\u002Fglossary\u002Fposition-sizing.md","Position Sizing",{"type":8,"value":1362,"toc":1374},[1363,1366,1369],[11,1364,1365],{},"Position sizing is deciding how many units to trade by working backwards from a fixed dollar risk rather than picking a quantity by feel.",[11,1367,1368],{},"You first choose what you are willing to lose, then let the distance to your stop set the size. This keeps the loss on any trade to a known, consistent amount regardless of the instrument.",[11,1370,1371,1373],{},[20,1372,22],{}," Position size (units) = account risk in dollars \u002F stop distance per unit",{"title":25,"searchDepth":26,"depth":26,"links":1375},[],{},"\u002Fglossary\u002Fposition-sizing",[1327,88,581,587],{"description":1365},"Sewell (2011), Money Management, UCL Dept. of Computer Science Research Note RN\u002F11\u002F05","https:\u002F\u002Ffinance.martinsewell.com\u002Fmoney-management\u002F","glossary\u002Fposition-sizing","UnBbo6J0sY_xMrm5aMaJ2hXCDg7Am2KZ0XEbqGNnzvw",{"id":1385,"title":1386,"body":1387,"description":1391,"extension":28,"meta":1402,"navigation":30,"path":1403,"related":1404,"seo":1405,"sourceName":1406,"sourceUrl":1407,"stem":1408,"term":514,"theme":95,"__hash__":1409},"glossary\u002Fglossary\u002Fr-multiple.md","R Multiple",{"type":8,"value":1388,"toc":1400},[1389,1392,1395],[11,1390,1391],{},"An R-multiple expresses a trade's result as a multiple of the amount risked, where 1R is the initial risk.",[11,1393,1394],{},"A winner that makes three times the risk is +3R and a full stop-out is -1R. Thinking in R decouples results from dollar amounts and lets you compare trades and strategies on one scale.",[11,1396,1397,1399],{},[20,1398,22],{}," If risk is $200, a $600 profit is +3R",{"title":25,"searchDepth":26,"depth":26,"links":1401},[],{},"\u002Fglossary\u002Fr-multiple",[513,485,487],{"description":1391},"MIT OpenCourseWare, Introduction to Probability: Expectation","https:\u002F\u002Focw.mit.edu\u002Fcourses\u002Fres-6-012-introduction-to-probability-spring-2018\u002Fresources\u002Fexpectation\u002F","glossary\u002Fr-multiple","lNRRzm1mzjslLd3-rj_qiz_0MD5PpbhrcKiqKUU_O_U",{"id":1411,"title":1412,"body":1413,"description":1417,"extension":28,"meta":1423,"navigation":30,"path":1424,"related":1425,"seo":1426,"sourceName":1427,"sourceUrl":1428,"stem":1429,"term":89,"theme":248,"__hash__":1430},"glossary\u002Fglossary\u002Frisk-management.md","Risk Management",{"type":8,"value":1414,"toc":1421},[1415,1418],[11,1416,1417],{},"Risk management is the discipline of deciding in advance how much you can lose on a trade and on a run of trades, so no single loss or losing streak can end your account.",[11,1419,1420],{},"It is the part of trading you can fully control: you cannot control whether a trade wins, but you can always control what it costs you if it loses. Sound risk management is what lets a small statistical edge compound over many trades instead of being wiped out by one bad run.",{"title":25,"searchDepth":26,"depth":26,"links":1422},[],{},"\u002Fglossary\u002Frisk-management",[582,242,247,241],{"description":1417},"ISO 31000:2018 Risk management — Guidelines","https:\u002F\u002Fwww.iso.org\u002Fstandard\u002F65694.html","glossary\u002Frisk-management","Ma9Z1XCx_ENESH8yVd7NwSFO3apQtuRv9w3K11qvylw",{"id":1432,"title":1433,"body":1434,"description":1438,"extension":28,"meta":1444,"navigation":30,"path":1445,"related":1446,"seo":1447,"sourceName":1448,"sourceUrl":1449,"stem":1450,"term":242,"theme":248,"__hash__":1451},"glossary\u002Fglossary\u002Frisk-of-ruin.md","Risk Of Ruin",{"type":8,"value":1435,"toc":1442},[1436,1439],[11,1437,1438],{},"Risk of ruin is the probability that a run of losses depletes an account below a usable level before a strategy's edge can play out.",[11,1440,1441],{},"Even a profitable strategy hits losing streaks; the question is whether position size lets you survive them. Small risk per trade pushes risk of ruin toward zero.",{"title":25,"searchDepth":26,"depth":26,"links":1443},[],{},"\u002Fglossary\u002Frisk-of-ruin",[581,582,241],{"description":1438},"Grinstead & Snell, Introductory Probability (LibreTexts): Gambler's Ruin","https:\u002F\u002Fstats.libretexts.org\u002FBookshelves\u002FProbability_Theory\u002FIntroductory_Probability_(Grinstead_and_Snell)\u002F12:_Random_Walks\u002F12.02:_Gambler's_Ruin","glossary\u002Frisk-of-ruin","PedlRPvDOUBDMRhPq4kfcoqlwJxQbNxDI1xBAwe1P7I",{"id":1453,"title":1454,"body":1455,"description":1459,"extension":28,"meta":1470,"navigation":30,"path":1471,"related":1472,"seo":1473,"sourceName":1380,"sourceUrl":1381,"stem":1474,"term":1327,"theme":248,"__hash__":1475},"glossary\u002Fglossary\u002Frisk-per-trade.md","Risk Per Trade",{"type":8,"value":1456,"toc":1468},[1457,1460,1463],[11,1458,1459],{},"Risk per trade is the amount of account equity you will lose if a single trade hits its stop-loss, usually set as a small fixed percentage.",[11,1461,1462],{},"It is the loss on the trade, not the full position value. Keeping it small (commonly 1 percent) means even a long losing streak costs only a modest share of the account.",[11,1464,1465,1467],{},[20,1466,22],{}," 1% of a $25,000 account is $250 of risk per trade",{"title":25,"searchDepth":26,"depth":26,"links":1469},[],{},"\u002Fglossary\u002Frisk-per-trade",[581,582,1214],{"description":1459},"glossary\u002Frisk-per-trade","bI6ThogHQjxSfVnblxGLi8xlneNP_8n5ASCA_DxlPsw",{"id":1477,"title":1478,"body":1479,"description":1483,"extension":28,"meta":1494,"navigation":30,"path":1495,"related":1496,"seo":1497,"sourceName":1406,"sourceUrl":1407,"stem":1498,"term":513,"theme":95,"__hash__":1499},"glossary\u002Fglossary\u002Frisk-reward-ratio.md","Risk Reward Ratio",{"type":8,"value":1480,"toc":1492},[1481,1484,1487],[11,1482,1483],{},"The risk\u002Freward ratio compares the distance to your profit target against the distance to your stop, for example risking 1 to make 3.",[11,1485,1486],{},"It sets how large winners are relative to losers. Win rate and risk\u002Freward trade off against each other, and only expectancy combines them into a verdict on whether a system is profitable.",[11,1488,1489,1491],{},[20,1490,22],{}," Risk $200 to make $600 is a 3:1 reward-to-risk",{"title":25,"searchDepth":26,"depth":26,"links":1493},[],{},"\u002Fglossary\u002Frisk-reward-ratio",[514,485,487],{"description":1483},"glossary\u002Frisk-reward-ratio","8FK0j09DZStjyuEimKAdelwWjp9WpOO_1j0lwXT-Xc8",{"id":1501,"title":559,"body":1502,"description":1506,"extension":28,"meta":1512,"navigation":30,"path":1513,"related":1514,"seo":1515,"sourceName":1516,"sourceUrl":1517,"stem":1518,"term":559,"theme":120,"__hash__":1519},"glossary\u002Fglossary\u002Froll.md",{"type":8,"value":1503,"toc":1510},[1504,1507],[11,1505,1506],{},"Rolling is closing a near-expiry futures position and reopening it in a later-dated contract to keep the exposure.",[11,1508,1509],{},"Speculators roll to avoid expiry and any delivery obligation. The price difference between the two contracts (the calendar spread) affects the cost of rolling.",{"title":25,"searchDepth":26,"depth":26,"links":1511},[],{},"\u002Fglossary\u002Froll",[545,114,115],{"description":1506},"CME Group: Rolling an Equity Position Using Spreads","https:\u002F\u002Fwww.cmegroup.com\u002Feducation\u002Fcourses\u002Funderstanding-futures-spreads\u002Frolling-an-equity-position-using-spreads.html","glossary\u002Froll","N4U-9eLOPBsZl0BGAVrj4jr0au-0N2CBycgVhGVzmB8",{"id":1521,"title":1522,"body":1523,"description":1527,"extension":28,"meta":1538,"navigation":30,"path":1539,"related":1540,"seo":1541,"sourceName":1542,"sourceUrl":1543,"stem":1544,"term":515,"theme":41,"__hash__":1545},"glossary\u002Fglossary\u002Fsharpe-ratio.md","Sharpe Ratio",{"type":8,"value":1524,"toc":1536},[1525,1528,1531],[11,1526,1527],{},"The Sharpe ratio measures return earned per unit of risk, calculated as excess return divided by the standard deviation of returns.",[11,1529,1530],{},"A higher Sharpe ratio means more return for the volatility taken. It lets you compare strategies on a risk-adjusted basis rather than on raw return alone.",[11,1532,1533,1535],{},[20,1534,22],{}," Sharpe = (return - risk-free rate) \u002F standard deviation of returns",{"title":25,"searchDepth":26,"depth":26,"links":1537},[],{},"\u002Fglossary\u002Fsharpe-ratio",[34,33,485],{"description":1527},"William F. Sharpe, Stanford University: The Sharpe Ratio","https:\u002F\u002Fweb.stanford.edu\u002F~wfsharpe\u002Fart\u002Fsr\u002Fsr.htm","glossary\u002Fsharpe-ratio","2SYpijBnvQgdaOKAE5LWdghAf_7PttDKHHGDrilvfI8",{"id":1547,"title":1548,"body":1549,"description":1553,"extension":28,"meta":1559,"navigation":30,"path":1560,"related":1561,"seo":1562,"sourceName":1563,"sourceUrl":1564,"stem":1565,"term":719,"theme":174,"__hash__":1566},"glossary\u002Fglossary\u002Fshort-selling.md","Short Selling",{"type":8,"value":1550,"toc":1557},[1551,1554],[11,1552,1553],{},"Short selling is taking a position that profits when the price falls, by selling first and buying back later.",[11,1555,1556],{},"In derivatives you can go short simply by selling to open, without owning the asset first. Shorting is one of the main attractions of futures and perpetuals.",{"title":25,"searchDepth":26,"depth":26,"links":1558},[],{},"\u002Fglossary\u002Fshort-selling",[957,396,364],{"description":1553},"U.S. SEC (Investor.gov): Short Sales","https:\u002F\u002Fwww.investor.gov\u002Fintroduction-investing\u002Finvesting-basics\u002Fglossary\u002Fshort-sales-0","glossary\u002Fshort-selling","hjkBbriV6PhgbrPOBaVMVlVLQDsO_EwJalywGjPr21U",{"id":1568,"title":192,"body":1569,"description":1573,"extension":28,"meta":1579,"navigation":30,"path":1580,"related":1581,"seo":1582,"sourceName":1583,"sourceUrl":1584,"stem":1585,"term":192,"theme":174,"__hash__":1586},"glossary\u002Fglossary\u002Fslippage.md",{"type":8,"value":1570,"toc":1577},[1571,1574],[11,1572,1573],{},"Slippage is the difference between the price you expected and the price you actually got on a fill.",[11,1575,1576],{},"It grows in fast, gapping, or thin markets and is why a stop is not a guarantee of price. Sizing with a little room for slippage keeps a planned loss from silently growing.",{"title":25,"searchDepth":26,"depth":26,"links":1578},[],{},"\u002Fglossary\u002Fslippage",[199,194,88],{"description":1573},"U.S. SEC Staff Statement: definition of price slippage","https:\u002F\u002Fwww.sec.gov\u002Fnewsroom\u002Fspeeches-statements\u002Fstaff-statement-regarding-broker-dealer-registration-certain-user-interfaces-utilized-prepare-staff-statement-regarding-broker-dealer-registration-certain-user-interfaces-utilized","glossary\u002Fslippage","PwJc61gx6Fg2HIECcC5iHdRliO4sSHxdUfAQNCVhl9Q",{"id":1588,"title":1589,"body":1590,"description":1594,"extension":28,"meta":1600,"navigation":30,"path":1601,"related":1602,"seo":1603,"sourceName":1604,"sourceUrl":1605,"stem":1606,"term":410,"theme":120,"__hash__":1607},"glossary\u002Fglossary\u002Fspot-market.md","Spot Market",{"type":8,"value":1591,"toc":1598},[1592,1595],[11,1593,1594],{},"The spot market is the market for immediate delivery, where you pay the current price now and own the actual asset now.",[11,1596,1597],{},"Profit or loss is simply the price change on what you hold, and the most a long can lose is what was paid. Spot is direct ownership, unlike a derivative.",{"title":25,"searchDepth":26,"depth":26,"links":1599},[],{},"\u002Fglossary\u002Fspot-market",[396,115,272],{"description":1594},"CFTC Glossary: Spot","https:\u002F\u002Fwww.cftc.gov\u002FLearnAndProtect\u002FEducationCenter\u002FCFTCGlossary\u002Fglossary_s.html","glossary\u002Fspot-market","o0E_UqKfg_F5WiuOY8UqznRz8CXSHUGlb0MJ81BhzdE",{"id":1609,"title":1610,"body":1611,"description":1615,"extension":28,"meta":1626,"navigation":30,"path":1627,"related":1628,"seo":1629,"sourceName":1630,"sourceUrl":1631,"stem":1632,"term":34,"theme":41,"__hash__":1633},"glossary\u002Fglossary\u002Fstandard-deviation.md","Standard Deviation",{"type":8,"value":1612,"toc":1624},[1613,1616,1619],[11,1614,1615],{},"Standard deviation is a statistical measure of how far values spread around their average, and in finance it is the classic measure of volatility.",[11,1617,1618],{},"A higher standard deviation of returns means wider, less predictable swings. It is the square root of variance and is quoted in the same units as the returns.",[11,1620,1621,1623],{},[20,1622,22],{}," Volatility is the standard deviation of returns",{"title":25,"searchDepth":26,"depth":26,"links":1625},[],{},"\u002Fglossary\u002Fstandard-deviation",[35,33,1191],{"description":1615},"NIST\u002FSEMATECH e-Handbook of Statistical Methods: Measures of Scale","https:\u002F\u002Fwww.itl.nist.gov\u002Fdiv898\u002Fhandbook\u002Feda\u002Fsection3\u002Feda356.htm","glossary\u002Fstandard-deviation","iFiTkbcpfuAmRiPDLCZywn1Q4lezgrV_AH5PeIWZ-4E",{"id":1635,"title":1636,"body":1637,"description":1641,"extension":28,"meta":1647,"navigation":30,"path":1648,"related":1649,"seo":1650,"sourceName":1651,"sourceUrl":1652,"stem":1653,"term":268,"theme":174,"__hash__":1654},"glossary\u002Fglossary\u002Fstock-index.md","Stock Index",{"type":8,"value":1638,"toc":1645},[1639,1642],[11,1640,1641],{},"A stock index is a number that tracks the combined value of a defined basket of stocks, such as a broad market of 500 large companies.",[11,1643,1644],{},"It is a common underlying for cash-settled futures and a standard generic example of a traded market. You cannot hold an index directly, only instruments that track it.",{"title":25,"searchDepth":26,"depth":26,"links":1646},[],{},"\u002Fglossary\u002Fstock-index",[272,337,115],{"description":1641},"U.S. SEC Investor.gov: Market Index","https:\u002F\u002Fwww.investor.gov\u002Fintroduction-investing\u002Finvesting-basics\u002Fglossary\u002Fmarket-index","glossary\u002Fstock-index","iKuPXUpvbCOY6PrfyREcUaIgFz_SMNoR3iR-kGLfP1Y",{"id":1656,"title":1657,"body":1658,"description":1662,"extension":28,"meta":1668,"navigation":30,"path":1669,"related":1670,"seo":1672,"sourceName":1673,"sourceUrl":1674,"stem":1675,"term":88,"theme":248,"__hash__":1676},"glossary\u002Fglossary\u002Fstop-loss.md","Stop Loss",{"type":8,"value":1659,"toc":1666},[1660,1663],[11,1661,1662],{},"A stop-loss is a pre-planned exit order that closes a trade once price reaches a set level, capping the loss.",[11,1664,1665],{},"It turns an intended risk into an actual one and gives a position a known maximum loss before you enter. A stop is an instruction to exit, not a guarantee of price: in fast or gapping markets the fill can be worse than the stop level.",{"title":25,"searchDepth":26,"depth":26,"links":1667},[],{},"\u002Fglossary\u002Fstop-loss",[582,862,1671,192],"Trailing stop",{"description":1662},"U.S. SEC Investor Bulletin: Stop, Stop-Limit, and Trailing Stop Orders","https:\u002F\u002Fwww.investor.gov\u002Fintroduction-investing\u002Fgeneral-resources\u002Fnews-alerts\u002Falerts-bulletins\u002Finvestor-bulletins-15","glossary\u002Fstop-loss","01lmUaA2OvbuCDYOH9fedO5ZwiapUBp6tUO9lBbMrXM",{"id":1678,"title":1679,"body":1680,"description":1684,"extension":28,"meta":1690,"navigation":30,"path":1691,"related":1692,"seo":1693,"sourceName":1694,"sourceUrl":1674,"stem":1695,"term":862,"theme":174,"__hash__":1696},"glossary\u002Fglossary\u002Fstop-order.md","Stop Order",{"type":8,"value":1681,"toc":1688},[1682,1685],[11,1683,1684],{},"A stop order becomes a market order once price reaches a set stop level, and it is the mechanism behind a stop-loss.",[11,1686,1687],{},"Because it turns into a market order, the fill can be worse than the stop price in a fast or gapping market. It is used to cap losses or to enter on a breakout.",{"title":25,"searchDepth":26,"depth":26,"links":1689},[],{},"\u002Fglossary\u002Fstop-order",[88,1671,192],{"description":1684},"U.S. SEC: Investor Bulletin — Stop, Stop-Limit, and Trailing Stop Orders","glossary\u002Fstop-order","J5YElqec63O4YNoSWz3gx5nPVZ7nYgGe1x5U430vmpQ",{"id":1698,"title":1699,"body":1700,"description":1704,"extension":28,"meta":1715,"navigation":30,"path":1716,"related":1717,"seo":1718,"sourceName":1719,"sourceUrl":1720,"stem":1721,"term":581,"theme":248,"__hash__":1722},"glossary\u002Fglossary\u002Fthe-1-percent-rule.md","The 1 Percent Rule",{"type":8,"value":1701,"toc":1713},[1702,1705,1708],[11,1703,1704],{},"The 1% rule is a guideline to risk no more than about 1 percent of total account equity on any single trade.",[11,1706,1707],{},"Some traders use up to 2 percent. The point is survival: at 1 percent, ten straight losses cost roughly 10 percent of the account, which is recoverable, whereas large risk per trade can be fatal.",[11,1709,1710,1712],{},[20,1711,22],{}," ten 1% losses leave about 0.99^10 = 90.4% of the account",{"title":25,"searchDepth":26,"depth":26,"links":1714},[],{},"\u002Fglossary\u002Fthe-1-percent-rule",[1327,582,242],{"description":1704},"Corporate Finance Institute: What Is Day Trading? (Risk Management Essentials)","https:\u002F\u002Fcorporatefinanceinstitute.com\u002Fresources\u002Fcareer\u002Fday-trader\u002F","glossary\u002Fthe-1-percent-rule","ErQ4QxWQ514RdAtYjnf2tP7fShP1MfKoJgGMoUYZ-6U",{"id":1724,"title":1725,"body":1726,"description":1730,"extension":28,"meta":1736,"navigation":30,"path":1737,"related":1738,"seo":1739,"sourceName":561,"sourceUrl":562,"stem":1740,"term":339,"theme":120,"__hash__":1741},"glossary\u002Fglossary\u002Ftick-size.md","Tick Size",{"type":8,"value":1727,"toc":1734},[1728,1731],[11,1729,1730],{},"Tick size is the smallest price increment a contract is allowed to move.",[11,1732,1733],{},"It sets the resolution of prices and, combined with the multiplier or contract size, determines the money value of one tick. A standard stock-index future has a 0.25 index-point tick.",{"title":25,"searchDepth":26,"depth":26,"links":1735},[],{},"\u002Fglossary\u002Ftick-size",[1167,337,345],{"description":1730},"glossary\u002Ftick-size","OY4KPkoh8dL8JpKH-Ubd8BL8lcNXUVeyjhvyV33VUCw",{"id":1743,"title":1744,"body":1745,"description":1749,"extension":28,"meta":1760,"navigation":30,"path":1761,"related":1762,"seo":1763,"sourceName":561,"sourceUrl":562,"stem":1764,"term":1167,"theme":120,"__hash__":1765},"glossary\u002Fglossary\u002Ftick-value.md","Tick Value",{"type":8,"value":1746,"toc":1758},[1747,1750,1753],[11,1748,1749],{},"Tick value is the money that one tick of price movement is worth on one contract.",[11,1751,1752],{},"It lets you translate a price move straight into dollars gained or lost. For a standard stock-index future, a 0.25 point tick is worth 12.50 dollars.",[11,1754,1755,1757],{},[20,1756,22],{}," Tick value = tick size x multiplier (or x contract size)",{"title":25,"searchDepth":26,"depth":26,"links":1759},[],{},"\u002Fglossary\u002Ftick-value",[339,337,345],{"description":1749},"glossary\u002Ftick-value","_eDIO3sAYt_7PPIyE7W2uo29OtcQ5q9cnJQE5z_JJZs",{"id":1767,"title":1768,"body":1769,"description":1773,"extension":28,"meta":1779,"navigation":30,"path":1780,"related":1781,"seo":1782,"sourceName":1694,"sourceUrl":1674,"stem":1783,"term":1671,"theme":174,"__hash__":1784},"glossary\u002Fglossary\u002Ftrailing-stop.md","Trailing Stop",{"type":8,"value":1770,"toc":1777},[1771,1774],[11,1772,1773],{},"A trailing stop is a stop order that follows price in your favor by a set distance, locking in gains as the trade moves your way.",[11,1775,1776],{},"It moves only in the profitable direction and never back toward the entry. It lets a winner run while still protecting accumulated profit.",{"title":25,"searchDepth":26,"depth":26,"links":1778},[],{},"\u002Fglossary\u002Ftrailing-stop",[88,862,241],{"description":1773},"glossary\u002Ftrailing-stop","tjqdXreQe1R-czOWf7jlF4NB6ZdkAzaWJFuvGa66SWg",{"id":1786,"title":1787,"body":1788,"description":1792,"extension":28,"meta":1803,"navigation":30,"path":1804,"related":1805,"seo":1806,"sourceName":66,"sourceUrl":67,"stem":1807,"term":64,"theme":41,"__hash__":1808},"glossary\u002Fglossary\u002Ftrue-range.md","True Range",{"type":8,"value":1789,"toc":1801},[1790,1793,1796],[11,1791,1792],{},"True range is the largest of three spans for a bar: high minus low, the absolute value of high minus the previous close, and the absolute value of the previous close minus low.",[11,1794,1795],{},"It captures the full move including gaps, which a simple high-minus-low range would miss. Averaging true range over several bars gives ATR.",[11,1797,1798,1800],{},[20,1799,22],{}," TR = max(high - low, |high - prev close|, |prev close - low|)",{"title":25,"searchDepth":26,"depth":26,"links":1802},[],{},"\u002Fglossary\u002Ftrue-range",[69,33],{"description":1792},"glossary\u002Ftrue-range","XGBq2muHWeytyCZYCfBgg01dchtD1y-nw3UoMoZ-5IE",{"id":1810,"title":35,"body":1811,"description":1815,"extension":28,"meta":1826,"navigation":30,"path":1827,"related":1828,"seo":1829,"sourceName":1630,"sourceUrl":1631,"stem":1830,"term":35,"theme":41,"__hash__":1831},"glossary\u002Fglossary\u002Fvariance.md",{"type":8,"value":1812,"toc":1824},[1813,1816,1819],[11,1814,1815],{},"Variance is the average of the squared differences of values from their mean, and standard deviation is its square root.",[11,1817,1818],{},"Variance, not standard deviation, is additive across independent periods, which is why volatility scales with the square root of time rather than time itself.",[11,1820,1821,1823],{},[20,1822,22],{}," Standard deviation = square root of variance",{"title":25,"searchDepth":26,"depth":26,"links":1825},[],{},"\u002Fglossary\u002Fvariance",[34,33,40],{"description":1815},"glossary\u002Fvariance","WV5EZBUae12BuBBs9u4-ftytQDJ0oPF3TPUHA2D-hEQ",{"id":1833,"title":33,"body":1834,"description":1838,"extension":28,"meta":1844,"navigation":30,"path":1845,"related":1846,"seo":1847,"sourceName":1848,"sourceUrl":1849,"stem":1850,"term":33,"theme":41,"__hash__":1851},"glossary\u002Fglossary\u002Fvolatility.md",{"type":8,"value":1835,"toc":1842},[1836,1839],[11,1837,1838],{},"Volatility is how much an instrument's price moves around over time, up or down, regardless of direction.",[11,1840,1841],{},"It says nothing about which way price will go, only how large the swings tend to be. Higher volatility means a wider range of outcomes, which is why it should drive stop distance and position size.",{"title":25,"searchDepth":26,"depth":26,"links":1843},[],{},"\u002Fglossary\u002Fvolatility",[34,69,40,515],{"description":1838},"FINRA: Volatility","https:\u002F\u002Fwww.finra.org\u002Finvestors\u002Finvesting\u002Finvesting-basics\u002Fvolatility","glossary\u002Fvolatility","JZlO24loOc2NMDUJWzgXE645DyvvJsruyMKg4-TVVu0",{"id":1853,"title":1854,"body":1855,"description":1859,"extension":28,"meta":1870,"navigation":30,"path":1871,"related":1872,"seo":1873,"sourceName":1406,"sourceUrl":1407,"stem":1874,"term":487,"theme":95,"__hash__":1875},"glossary\u002Fglossary\u002Fwin-rate.md","Win Rate",{"type":8,"value":1856,"toc":1868},[1857,1860,1863],[11,1858,1859],{},"Win rate is the percentage of trades that end in a profit.",[11,1861,1862],{},"On its own it says nothing about profitability, because it ignores the size of wins versus losses. A high win rate with a poor payoff can still be a losing system.",[11,1864,1865,1867],{},[20,1866,22],{}," 70% wins at a 1:3 payoff gives (0.7x1) - (0.3x3) = -0.2R",{"title":25,"searchDepth":26,"depth":26,"links":1869},[],{},"\u002Fglossary\u002Fwin-rate",[485,513,514],{"description":1859},"glossary\u002Fwin-rate","iH9JeKHykYLarHJWYZ8iX4tE9ewvWAEHns6uDGjQbWY",1785318603134]