OHC glossary

1-2-3 breakout pullback LMRSS An A+ LMRSS setup: a series of lower highs and lows breaks a swing low support, price accelerates, pulls back above the 50 EMA, fails the first test — the best test — and continues in the break direction. 3-Bucket Framework OHC Ecosystem OHC's flagship allocation system and the unifying intellectual property across both businesses: 80% Passive Growth, 15% Structured Income, 5% Active Trading. 10 EMA Technical Analysis The 10-period exponential moving average, the fastest of the three LMRSS averages. 21 EMA Technical Analysis The 21-period exponential moving average, used in LMRSS as the short-term signal and control line. 25-delta skew Volatility The difference in implied volatility between the 25-delta put and the 25-delta call — a standard, comparable measure of how much the market is charging for downside versus upside. 50 EMA Technical Analysis The 50-period exponential moving average, and the primary trend and location reference in LMRSS. A+ setup LMRSS The highest-grade LMRSS setups, where location, momentum, rotation, setup and signal all align and the reward-to-risk justifies full size. Accrued interest Fixed Income Interest that has built up since the last coupon payment but has not yet been paid. Active investing Markets & Instruments Selecting and timing individual positions with the aim of beating a benchmark, based on research and analysis. Adjustment Derivatives & Options Changing the structure of a live position — rolling, adding a leg, converting to a spread — to manage risk or recover value as conditions change. Adjustment ladder Derivatives & Options The pre-written sequence of adjustments a position will follow if it moves against the thesis — when to roll, when to leg into a butterfly, when to convert to a vertical. Alpha Markets & Instruments Return earned above what the benchmark or the risk taken would have delivered on its own — the measurable value added by skill rather than by exposure. Alternative assets Markets & Instruments Investments outside listed equities, bonds and cash — private equity, hedge funds, real assets, infrastructure, collectibles, digital assets. American option Derivatives & Options An option that can be exercised at any time up to expiry, which is the standard for single-stock options. Anchored VWAP Technical Analysis A VWAP calculated from a chosen starting point — an earnings gap, a swing low, a major news event — rather than from the session open. Anchoring bias Psychology & Process Fixating on the first number you encountered — usually your entry price — and judging everything against it. Ascending triangle Technical Analysis A pattern with horizontal resistance and rising support, showing buyers stepping in at progressively higher prices. Asset-backed security Markets & Instruments A security whose payments come from a pool of underlying loans or receivables rather than from a single issuer's balance sheet. Asset-based valuation Valuation & Fundamentals Valuing a business by summing what it owns — tangible assets such as property and inventory, plus intangibles such as patents and brand — net of liabilities. Asset allocation Risk & Portfolio The decision of how much capital to place in each asset class, which drives the large majority of portfolio outcomes. Asset class Markets & Instruments A group of investments that share economic behaviour and are governed by similar rules — equities, fixed income, cash, commodities, property, alternatives. Assignment Derivatives & Options The obligation falling on an option seller when a holder exercises: sellers are selected at random from those short the contract and must perform. Assignment risk Derivatives & Options The chance that a short option is assigned, forcing you into the underlying at the strike. At the money Derivatives & Options An option whose strike is at or very near the current price of the underlying. Attribution analysis Risk & Portfolio Decomposing a portfolio's return into its sources — asset allocation, security selection, timing, currency — to establish what actually drove performance. Availability bias Psychology & Process Over-weighting recent or vivid experiences when judging probability. Average daily volume Markets & Instruments The mean number of shares or contracts traded per session over a lookback window. Average true range Volatility An indicator measuring the average size of a security's daily range, including gaps — a plain measure of how much it typically moves. B+ setup LMRSS The second tier of LMRSS setups — less reliable but still tradeable in the right context. Backtesting Psychology & Process Testing a strategy against historical data to see how it would have performed before risking money on it. Backwardation Volatility A term structure in which nearer-dated contracts or implied volatilities are priced above longer-dated ones. Balance sheet Valuation & Fundamentals A snapshot at a point in time of what a company owns, owes and is worth to shareholders — assets, liabilities and equity. Basis point Fixed Income One hundredth of a percentage point, 0.01%. Bear call spread Derivatives & Options Selling a lower-strike call and buying a higher-strike call in the same expiry — a credit trade that works in bearish, stagnant and even slightly bullish markets provided the short call stays out of the money. Bear market Markets & Instruments A sustained decline in prices, conventionally 20% or more from a peak, accompanied by falling profits and risk aversion. Bear put spread Derivatives & Options Buying a higher-strike put and selling a lower-strike put in the same expiry — a moderately bearish debit trade. Bear trap Technical Analysis A false downside break that pulls in sellers before reversing higher. Benchmarking Risk & Portfolio Comparing portfolio returns against a relevant market index to judge whether performance reflects skill or simply market exposure. Beta Risk & Portfolio A measure of how much an asset moves relative to its benchmark. Bid-ask spread Markets & Instruments The gap between the highest price a buyer will pay (bid) and the lowest a seller will accept (ask). Big move day LMRSS A day type marked by one sharp, violent move that separates price dramatically from the 21 EMA, leaving most participants unable to get in near the averages. Binomial option pricing model Derivatives & Options A model that values an option by stepping the underlying's price forward through a lattice of possible up and down moves. Black-Scholes model Derivatives & Options The standard closed-form model for pricing European options from the underlying price, strike, time to expiry, interest rate and volatility. Blue chip stock Markets & Instruments A large, established, financially sound company with a long record of reliable performance and often a consistent dividend. Body pillar OHC Ecosystem The OHC Group pillar concerned with the physical health, energy, resilience and longevity that sustained performance requires. Bollinger Bands Volatility A volatility indicator plotting bands a set number of standard deviations above and below a 20-period moving average. Bond Fixed Income A debt security: the investor lends money to a government or company in exchange for periodic interest and the return of face value at maturity. Bond covenant Fixed Income A contractual rule in the bond documentation protecting lenders — limits on additional debt, minimum financial ratios, restrictions on asset sales. Book value Valuation & Fundamentals The accounting net worth of a company: total assets minus total liabilities, as reported on the balance sheet. Bootstrapping Fixed Income The technique for deriving zero-coupon spot rates from the prices of coupon-paying bonds, solving sequentially from the shortest maturity outward. Break-even stop Risk & Portfolio Moving the stop to the entry price once a trade has made enough progress, so the position can no longer lose money. Breakaway gap Technical Analysis A gap that carries price decisively out of a trading range, marking the start of a new trend. Breakdown Technical Analysis A breakout to the downside, where price closes decisively below support. Breakeven point Derivatives & Options The underlying price at which a position makes neither profit nor loss at expiry. Break of structure Technical Analysis The point at which price decisively takes out a prior swing level, confirming that control has changed hands and a new trend leg is underway. Breakout Technical Analysis Price moving decisively beyond a defined level — a range boundary, a channel, a swing high — usually signalling the start of a new directional move. Bucket 1 — Passive Growth OHC Ecosystem The 80% allocation in the 3-Bucket Framework, aimed at long-term compounding across market cycles. Bucket 2 — Structured Income OHC Ecosystem The 15% allocation in the 3-Bucket Framework, aimed at predictable cash flow generated through derivatives and fixed income. Bucket 3 — Active Trading OHC Ecosystem The 5% allocation in the 3-Bucket Framework, reserved for high-probability intraday execution through the LMRSS system. Bull call spread Derivatives & Options Buying a lower-strike call and selling a higher-strike call in the same expiry — a moderately bullish debit trade. Bull market Markets & Instruments A sustained period of rising prices and improving sentiment, usually alongside expanding profits and confident capital allocation. Bull put spread Derivatives & Options Selling a higher-strike put and buying a lower-strike put in the same expiry — a moderately bullish credit trade. Bull trap Technical Analysis A false upside break that draws in buyers before reversing sharply lower. Business cycle Markets & Instruments The recurring pattern of economic expansion, peak, contraction and trough, and the frame OHC uses to connect macroeconomics to asset prices. Butterfly spread Derivatives & Options A three-strike structure combining a long spread and a short spread that creates a narrow profit zone around the middle strike with defined losses in the wings. Buy to close Derivatives & Options The order that exits an existing short option position by buying the contract back. Buy to open Derivatives & Options The order that opens a long option position, whether a call or a put. Calendar spread Derivatives & Options Selling a near-dated option and buying a longer-dated one at the same strike, profiting from the faster time decay of the front month. Callable bond Fixed Income A bond the issuer can redeem early, usually when rates have fallen and it can refinance more cheaply. Call calendar spread Derivatives & Options A calendar built from calls: sell the short-dated call, buy the longer-dated call at the same strike. Call option Derivatives & Options An option giving the holder the right to buy the underlying at the strike price. Candlestick chart Technical Analysis A chart where each period is drawn as a body spanning the open and close with wicks marking the high and low. Capital appreciation Markets & Instruments The increase in an asset's market price above what you paid for it — the growth half of total return, as opposed to income. Capital at risk Risk & Portfolio The maximum money a position can lose — the debit paid on a long option, the spread width less the credit on a vertical, or the distance to the stop times the size on a directional trade. Capital expenditure Valuation & Fundamentals Cash spent on long-lived assets — plant, equipment, property, technology — to maintain or expand capacity. Capital market line Risk & Portfolio The line describing the risk-return trade-off available by combining the risk-free asset with the market portfolio. Capital markets Markets & Instruments The venues and mechanisms where institutions and individuals trade financial assets and where issuers raise long-term funding. Capital pillar OHC Ecosystem The OHC Group pillar concerned with creating, deploying, growing, preserving and giving back capital — the institutional core, built in sequence. Capital preservation Risk & Portfolio An objective that prioritises not losing money over maximising return, appropriate late in a cycle, in a contraction, or for capital that will be needed soon. Capital structure Markets & Instruments The full stack of a company's debt and equity obligations, ordered by claim priority — senior debt at the top, common equity at the bottom. Cap spread Fixed Income Buying an interest rate cap and selling a higher-strike cap to reduce the net premium, creating protection over a defined band of rate moves. Cash equivalent Markets & Instruments A holding so short-dated and safe that it functions as cash — money market accounts, certificates of deposit, T-bills. Cash flow statement Valuation & Fundamentals The statement tracking actual cash in and out, split into operating, investing and financing activities. Catalyst Valuation & Fundamentals The specific, dated event expected to force the market to re-rate a position within the trade's horizon — earnings, a Fed decision, a product launch, a regulatory ruling. Channel Technical Analysis A pair of parallel trendlines containing price as it trends, giving an upper and lower boundary. CNN Fear and Greed Index Technical Analysis A composite sentiment gauge built from seven inputs — market momentum, stock price strength, breadth, put and call options, junk bond demand, volatility and safe-haven demand. Cognitive bias Psychology & Process A systematic error in reasoning that distorts decisions without the decision-maker noticing. Collar Derivatives & Options Holding stock, buying a protective put and selling a call to pay for it — downside protection funded by giving up upside. Collateralised debt obligation Markets & Instruments A structure that repackages a pool of debt securities into tranches of differing risk and sells them to investors with different appetites. Commercial paper Markets & Instruments Short-term unsecured debt issued by a corporation to fund working capital. Commodity Markets & Instruments A physical raw material traded as a standardised asset class — energy, metals, agricultural products. Common gap Technical Analysis A small gap that occurs within a trading range and is usually filled quickly. Common stock Markets & Instruments The standard form of company ownership: voting rights, a claim on residual profits, potential dividends, and last position in a liquidation queue. Comparable company analysis Valuation & Fundamentals Valuing a business by comparing its multiples — P/E, EV/EBITDA, price-to-sales — against similar companies in the same industry. Competitive advantage Valuation & Fundamentals The durable feature that lets a company sustain profitability against competition — proprietary technology, brand, scale, network effects, cost position. Concentration risk Fixed Income The risk that a portfolio's exposure is too heavily clustered in one issuer, sector, geography or counterparty. Condor spread Derivatives & Options A four-strike variation on the butterfly that widens the profit zone by separating the two middle strikes. Confirmation bias Psychology & Process Seeking and weighting only the information that supports what you already believe, while dismissing what contradicts it. Consensus estimate Valuation & Fundamentals The average of analyst forecasts for a company's earnings or revenue, and the bar against which results are judged. Conservative trade Derivatives & Options In the OHC options framework, a structure built around owning the underlying — the collar, protective put and covered call. Consolidation Technical Analysis A pause in a trend where price moves sideways in a tight area while the market digests the previous move. Consumer price index Valuation & Fundamentals The standard measure of consumer inflation, tracking the price of a representative basket of goods and services. Contango Volatility A term structure in which longer-dated contracts or implied volatilities are priced above nearer-dated ones — the normal, calm-market shape. Continuation gap Technical Analysis A gap occurring in the middle of an established trend, confirming momentum and that the move has further to run. Continuous learning Psychology & Process The habit of staying informed, reviewing and refining the plan, seeking feedback and treating markets as a moving target. Contract multiplier Derivatives & Options The number of shares one option contract controls, conventionally 100 for US equity options. Contrarian investing Psychology & Process Deliberately positioning against prevailing sentiment on the expectation that the crowd has over-extended. Control (LMRSS) LMRSS Whether buyers or sellers currently hold the market on the governing timeframe, established by price position relative to the 10, 21 and 50 EMAs and confirmed by a successful pullback test. Convertible bond Fixed Income A bond that the holder can exchange for a set number of the issuer's shares. Convexity Fixed Income The curvature in the price-yield relationship that duration, being a straight-line measure, misses. Conviction Risk & Portfolio The strength of belief in a thesis, and the input that justifies size and structure. Corporate bond Fixed Income Debt issued by a company to fund expansion, acquisitions or operations. Corporate governance Valuation & Fundamentals The structures and practices that determine how a company is directed and held accountable — board quality, transparency, shareholder rights, ethical standards. Correlation Risk & Portfolio The degree to which two assets' returns move together, from +1 (in lockstep) to -1 (opposite). Cost of carry Derivatives & Options The net cost of holding an asset until a contract's maturity — financing, storage and insurance, less any income such as dividends. Counter-trend trade LMRSS An LMRSS entry against the prevailing trend, only taken when price has moved a long way from the 4-hour or 1-hour swing high or low into a profit-taking zone. Counterparty risk Risk & Portfolio The risk that the other side of a contract fails to perform. Coupon Fixed Income The interest rate the issuer promises to pay on the bond's face value, and the cash income the holder receives. Coupon frequency Fixed Income How often interest is paid — annually, semi-annually or quarterly. Course curriculum OHC Ecosystem The ten internal modules behind the four published paths: orientation, Investment 101, valuation theory, fixed income, equity analysis, derivatives 101, LMRSS day trading, alternative assets and portfolio construction, risk and reward payoffs, and the practical investment workshop. Covered call Derivatives & Options Holding the underlying stock and selling a call against it, collecting premium in exchange for capping the upside at the short strike. Credit analysis Fixed Income The structured evaluation of whether a borrower can and will meet its obligations — data collection, financial ratio analysis, covenant review, industry and macro assessment, then a risk judgement. Credit committee Fixed Income The forum that approves or rejects individual securities after credit analysis, before any money is committed. Credit default swap Fixed Income A contract that pays out if a specified borrower defaults, in exchange for a periodic premium — effectively insurance on credit risk. Credit rating Fixed Income An agency's assessment of an issuer's ability to meet its obligations, expressed on a letter scale from AAA down. Credit risk Fixed Income The risk that a borrower fails to make interest or principal payments as promised. Credit spread Fixed Income The extra yield a riskier bond pays over a risk-free government bond of similar maturity — the market's price of credit risk. Credit trade Derivatives & Options An options position entered for a net premium received, where the credit is the maximum gain. Crown reversal LMRSS A named A+ LMRSS reversal setup taught in Module 6 and its own short-form lesson. Cryptocurrency Markets & Instruments A digital asset secured by cryptography and recorded on a distributed ledger, such as Bitcoin or Ether. Cup and handle Technical Analysis A bullish continuation pattern where price forms a rounded base (the cup) then a shallow pullback (the handle) before breaking out. Currency pair Markets & Instruments The quotation convention in FX — EUR/USD, GBP/USD — where you are simultaneously long one currency and short the other. Current ratio Valuation & Fundamentals Current assets divided by current liabilities. Current yield Fixed Income Annual coupon divided by current market price — the income return at today's price, ignoring any gain or loss to maturity. Curve flattening Fixed Income Short-dated yields rising relative to long-dated ones, compressing the gap. Curve steepening Fixed Income Long-dated yields rising relative to short-dated ones, widening the gap between them. Cycle of market emotions Psychology & Process The repeating emotional arc that markets move through — optimism, excitement, euphoria at the top, then anxiety, fear, panic and despondency at the bottom. Daily loss limit Psychology & Process A hard cap on how much can be lost in a single session, after which trading stops regardless of what the market is doing. Daily Report Card Psychology & Process OHC's structured daily trading journal, kept in the DRC folder since 2023. Days to cover Markets & Instruments Short interest divided by average daily volume — how many trading days it would take shorts to buy back their position. Days to expiration Derivatives & Options The number of calendar days remaining in an option's life, the standard shorthand for where a position sits on the time-decay curve. Day trading LMRSS Buying and selling within the same trading session to profit from short-term price movement, closing all positions before the close. Day type LMRSS The LMRSS taxonomy of intraday market regimes — range day, trend day, big move day and runaway day — established pre-market and revised as the session develops. Debit spread Derivatives & Options A vertical spread entered for a net cost, such as a bull call or bear put. Debit trade Derivatives & Options An options position entered for a net cost, where the premium paid is the maximum loss. Debt-to-equity ratio Valuation & Fundamentals Total debt divided by total equity — how much of the business is financed by borrowing rather than ownership. Debt service coverage ratio Fixed Income Earnings or cash flow divided by scheduled debt service — whether the borrower can actually pay interest and principal from what the business generates. Decision fatigue Psychology & Process The degradation in judgement that follows a long run of decisions, leading to impulsiveness or paralysis. Default Fixed Income Failure by a borrower to meet a contractual payment obligation. Defined risk Derivatives & Options A position whose worst-case loss is fixed and known at entry, because a long option or stock leg caps it. Delta Derivatives & Options How much an option's price changes for a $1 move in the underlying, and a rough proxy for the probability of finishing in the money. Delta neutral Derivatives & Options A position structured so its net delta is approximately zero, meaning it does not profit or lose from small moves in the underlying. Demand zone Technical Analysis An area where heavy buying previously occurred, capable of absorbing selling and reversing price when revisited. Demo account Psychology & Process A simulated trading account used to practise strategy, platform and order types without risking capital. Derivative Derivatives & Options A contract whose value is derived from an underlying asset — a stock, index, bond, commodity or currency. Descending triangle Technical Analysis A pattern with horizontal support and falling resistance, showing sellers accepting progressively lower prices. Diagonal spread Derivatives & Options A spread using both different strikes and different expiries — a near-term short option against a longer-dated long option. Discipline Psychology & Process Doing what the plan says when doing something else feels better. Discount bond Fixed Income A bond trading below face value, usually because its coupon is below current market rates or its credit has deteriorated. Discounted cash flow Valuation & Fundamentals A valuation method that forecasts an asset's future cash flows and discounts them back to present value. Discount rate Valuation & Fundamentals The rate used to convert future cash flows into present value, reflecting the time value of money and the riskiness of those cash flows. Divergence Technical Analysis Price making a new high or low while the oscillator does not, indicating that momentum is not confirming the move. Diversification Risk & Portfolio Spreading capital across assets, sectors and geographies whose returns do not move together, so that no single outcome dominates the portfolio. Dividend Markets & Instruments A distribution of company profits to shareholders, usually paid quarterly or semi-annually. Dividend discount model Valuation & Fundamentals A valuation method that values a share as the present value of its expected future dividends. Dividend yield Valuation & Fundamentals Annual dividend per share divided by the current share price — the income return on an equity at today's price. Doji Technical Analysis A candle whose open and close are almost identical, showing that neither side won the period. Double bottom Technical Analysis A reversal pattern where price tests a level twice, holds both times, then breaks the intervening high. Double top Technical Analysis A reversal pattern where price reaches a level twice and fails both times, then breaks the intervening low. Dow Jones Industrial Average Markets & Instruments A price-weighted index of 30 large US companies, the oldest widely quoted US benchmark. Downtrend Technical Analysis A sequence of lower highs and lower lows, indicating sellers in control. Drawdown Risk & Portfolio The decline from a portfolio's peak value to its subsequent trough, expressed as a percentage. Due diligence Valuation & Fundamentals The structured investigation of an investment before committing capital — financial, legal, operational and market. Due Diligence Framework OHC Ecosystem OHC's three-lens approach to assessing any investment: long-term fundamental analysis of macro, industry and issuer; medium-term technical analysis of price trends and key indicators; and short-term sentiment analysis of positioning and market mood. Duration Fixed Income A bond's price sensitivity to interest rate changes, expressed in years or as a percentage move per 1% rate shift. DV01 Fixed Income The dollar value of a one-basis-point move in yield — how much a position's price changes for the smallest standard rate increment. Early assignment Derivatives & Options Assignment before expiration, possible on American-style options and most likely when a short option is deep in the money or when an ex-dividend date makes exercise economically rational. Earnings date Valuation & Fundamentals The scheduled day a company reports results — a known, dated volatility event. Earnings per share Valuation & Fundamentals Net profit divided by shares outstanding — the profit attributable to each share. EBITDA Valuation & Fundamentals Earnings before interest, tax, depreciation and amortisation — a rough proxy for operating cash generation that strips out financing and accounting choices. Economic calendar Valuation & Fundamentals The forward schedule of data releases, central bank decisions, earnings dates and market holidays. Economic indicator Valuation & Fundamentals A published statistic used to read the state of the economy — GDP, CPI, unemployment claims, non-farm payrolls, retail sales, ISM and PMI surveys, consumer confidence. Edge Valuation & Fundamentals The specific, articulable reason a trade should make money — an information advantage, a positioning or flow imbalance, a volatility or skew dislocation, a behavioural pattern, a structural feature. Efficient frontier Risk & Portfolio The set of portfolios offering the highest expected return for each level of risk. Emotional control Psychology & Process The ability to act on your plan rather than on what you are feeling at the time. Engulfing candle Technical Analysis A candle whose body completely covers the previous candle's body, signalling a decisive shift in control. Enterprise value Valuation & Fundamentals The value of the whole business regardless of how it is financed: market capitalisation plus the market value of debt, minus cash. Equity Markets & Instruments An ownership stake in a company, entitling the holder to a share of profits and usually to a vote. Equity value Valuation & Fundamentals The value attributable to shareholders — in practice, market capitalisation. ESG investing Markets & Instruments Investing that formally weighs environmental, social and governance factors alongside financial ones. European option Derivatives & Options An option that can only be exercised on the expiration date, common for index options. EV/EBITDA Valuation & Fundamentals Enterprise value divided by EBITDA — the whole-business equivalent of a P/E ratio, and comparable across companies with different debt levels. Exchange Markets & Instruments A regulated, centralised marketplace — the NYSE, Nasdaq, LSE — whose job is to ensure fair, orderly trading and efficient dissemination of prices. Exchange-traded fund Markets & Instruments A pooled fund that trades on an exchange like a single stock, usually tracking an index, sector or theme. Executed OHC Ecosystem The third and final state in the OHC trade memo lifecycle: the position is closed and the post-trade review is completed on the memo. Execution Markets & Instruments The act of getting a planned trade into the market at the intended level, size and structure. Exercise Derivatives & Options The holder's act of using their right to buy (call) or sell (put) the underlying at the strike price. Exhaustion gap Technical Analysis A gap appearing late in an extended trend, marking the last surge of participation before momentum fails. Expected loss Fixed Income Probability of default multiplied by exposure at default multiplied by loss given default — the statistically anticipated loss on a credit exposure. Expected move Volatility The size of move the options market is pricing into an event, derived from implied volatility and expressed as a percentage or a price range. Expiration date Derivatives & Options The last day an option can be exercised, after which it ceases to exist. Expire worthless Derivatives & Options The outcome where an option finishes out of the money and ceases to exist with no value. Exponential moving average Technical Analysis A moving average that weights recent prices more heavily, making it faster to respond than a simple moving average. Exposure at default Fixed Income The amount actually at risk at the moment a borrower defaults, including drawn balances and any undrawn commitments likely to be used. Extrinsic value Derivatives & Options The part of an option's premium above its intrinsic value, made up of time value and volatility value. Face value Fixed Income The principal amount the issuer repays at maturity, and the base on which coupon payments are calculated. Fade the breakout Technical Analysis Trading against a breakout that fails to follow through, on the expectation that price reverts into its prior range. Falling wedge Technical Analysis A pattern of two downward-sloping converging lines, where declines are shrinking. Fear and greed Psychology & Process The two emotions that dominate trading decisions and, at scale, market prices. Fibonacci extension Technical Analysis Projected levels beyond the prior move's extreme, used to set profit targets in a trend. Fibonacci pullback LMRSS The LMRSS trend entry: waiting for price to retrace into the 50% to 76.4% Fibonacci zone after a break of structure, ideally testing the 76.4% and then turning back in the trend direction. Fibonacci retracement Technical Analysis Horizontal levels drawn at proportional depths of a prior move — 38.2%, 50%, 61.8%, 76.4% — used to anticipate where a pullback will end. Financial asset Markets & Instruments An intangible claim on monetary value — a share, a bond, a derivative — rather than a physical object. Financial modelling Valuation & Fundamentals Building a structured, assumption-driven representation of a business or trade to project returns and test outcomes. Fiscal policy Valuation & Fundamentals Government decisions on taxation and spending, and their effect on growth, inflation and sector-level demand. Fixed-rate bond Fixed Income A bond paying the same coupon throughout its life, giving predictable income and full exposure to rate moves. Fixed Income Framework Fixed Income OHC's four-stage process for building and running a bond portfolio: set the asset-class mix by geography, industry and rating band; select individual securities through credit analysis and credit-committee approval; execute at or above target yields; then monitor and feed results back into allocation. Flat yield curve Fixed Income A curve where short and long yields are close, signalling that the market cannot decide between growth and slowdown. Floating-rate bond Fixed Income A bond whose coupon resets periodically against a benchmark rate, so income rises and falls with the market. Foreign exchange Markets & Instruments The market for trading one currency against another, quoted in pairs, operating 24 hours a day five days a week and the largest and most liquid market in the world. Forward contract Derivatives & Options A privately negotiated agreement to buy or sell an asset at an agreed price on a future date, fully customisable to the parties' needs. Forward rate Fixed Income The interest rate implied today for a period starting in the future, derived from the current curve. Forward rate agreement Fixed Income An over-the-counter contract that fixes an interest rate for a future period, protecting both sides from rate moves in the interim. Foundation path OHC Ecosystem The entry course bundle on ohctraderoom.com, priced at $349, covering the fundamentals a member needs before any strategy work. Free cash flow Valuation & Fundamentals The cash a business generates after funding the capital spending needed to keep running — the money genuinely available to repay debt, pay dividends or reinvest. Free float Markets & Instruments The portion of a company's shares actually available to trade publicly, excluding closely held or restricted stock. Fully bid LMRSS A market state where buying pressure so overwhelms supply that price moves up with no meaningful pullback. Fundamental analysis Valuation & Fundamentals Evaluating a security's intrinsic value from economic, financial and qualitative evidence — financial statements, ratios, management quality, industry position and macro conditions. Futures contract Derivatives & Options A standardised, exchange-traded agreement to buy or sell an asset at a set price on a set future date. Game plan LMRSS The pre-market written plan for the session: day type expectation, key levels, bias, the setups being watched for and the conditions that would invalidate the read. Gamma Derivatives & Options The rate at which delta itself changes as the underlying moves — the second derivative, and the speed behind delta's response. Gamma strangle Derivatives & Options OHC's swing-trade structure: a longer-dated primary leg carrying 70-80% of the weight, slightly out of the money, hedged by a shorter-dated, near-the-money opposite leg with the remaining 20-30%. Gap Technical Analysis A discontinuity where price opens materially above or below the previous close, with no trading in between. Good race LMRSS The LMRSS name for the full sequence a clean trend day runs through: setup, break of structure, Fibonacci pullback, then channelling with leg 1 and leg 2 tests. Government bond Fixed Income Debt issued by a national government to fund spending or refinance existing debt, generally the safest instrument in its own currency. Greeks Derivatives & Options The set of sensitivities that describe how an option's value responds to changing conditions — delta, gamma, theta, vega and rho. Gross domestic product Valuation & Fundamentals The total value of goods and services an economy produces, the headline measure of economic growth. Gross margin Valuation & Fundamentals Revenue minus cost of goods sold, expressed as a percentage of revenue. Growth stock Markets & Instruments A company expected to grow revenue and earnings materially faster than the market, usually reinvesting profits rather than paying them out. Guidance Valuation & Fundamentals Management's own forecast of future revenue, earnings or other metrics. Hammer Technical Analysis A candle with a small body at the top and a long lower wick, appearing after a decline. Head and shoulders Technical Analysis A reversal pattern of three peaks — a higher middle peak flanked by two lower ones — joined by a neckline that acts as the trigger level. Hedge fund Markets & Instruments A pooled vehicle for professional and high-net-worth investors that uses strategies unavailable to most retail funds — leverage, short selling, derivatives, concentrated bets. Hedging Risk & Portfolio Taking an offsetting position to reduce exposure to an unwanted risk. Herding effect Psychology & Process Following what other market participants are doing rather than your own analysis. Higher high Technical Analysis A swing peak above the previous one, evidence that buyers are gaining ground. Higher low Technical Analysis A pullback that stops above the previous swing low, showing sellers are losing momentum. High risk trade Derivatives & Options In the OHC options framework, structures used only with strong conviction backed by fundamental, technical and sentiment analysis — naked long calls and puts, straddles, strangles, ratio spreads and backspreads. High yield Fixed Income Bonds rated below BBB-, offering higher yields to compensate for materially higher default risk. Historical volatility Volatility The realised volatility of an asset, calculated as the standard deviation of past returns over a stated window. Hybrid security Markets & Instruments An instrument combining features of debt and equity — convertible bonds, convertible preference shares, certain perpetuals. Ideas OHC Ecosystem The first state in the OHC trade memo lifecycle: researched and written up, but no position taken. Idiosyncratic risk Risk & Portfolio Risk specific to a single company or instrument — a management failure, a product recall, a fraud. Implied volatility Volatility The volatility the market is pricing into an option, reverse-engineered from its market price using a model such as Black-Scholes. Imposter syndrome Psychology & Process The persistent sense of not really belonging or being qualified, common among traders who lack external validation for their work. Income statement Valuation & Fundamentals The financial statement showing revenue, costs and profit over a period. Index fund Markets & Instruments A fund built to replicate the performance of a stated index rather than beat it. Industry analysis Valuation & Fundamentals Assessing the sector a company operates in — growth prospects, competitive intensity, technology change, regulation — to judge how well positioned the company is relative to peers. Inflation Valuation & Fundamentals The rate at which the general price level rises, eroding the purchasing power of money and of fixed cash flows. Infrastructure Markets & Instruments Investment in the physical systems an economy runs on — roads, bridges, power generation, utilities networks. Initial public offering Markets & Instruments The first sale of a company's shares to public investors, moving it from private to listed status. In Play OHC Ecosystem The second state in the OHC trade memo lifecycle: the position is live and being managed. Institutional ownership Markets & Instruments The share of a company held by pension funds, asset managers, insurers and other professional investors. Interest coverage ratio Valuation & Fundamentals Operating profit divided by interest expense — how many times over the company can pay the interest on its debt. Interest rate cap Fixed Income A contract that pays out if a reference rate rises above a set strike, capping a borrower's effective interest cost. Interest rate collar Fixed Income Buying a cap and selling a floor at the same time, fixing the effective rate within a defined range. Interest rate floor Fixed Income A contract that pays out if a reference rate falls below a set strike, protecting income on floating-rate assets. Interest rate parity Derivatives & Options The relationship linking two countries' interest rates to the forward exchange rate between their currencies. Interest rate risk Fixed Income The risk that a change in market rates moves the value of a fixed-income position. Interest rate swap Fixed Income An agreement to exchange one stream of interest payments for another, most commonly fixed for floating, on a notional amount. In the money Derivatives & Options An option with intrinsic value: a call whose strike is below the current price, or a put whose strike is above it. Intrinsic value Valuation & Fundamentals The value an asset is worth on its fundamentals, independent of its market price. Invalidation Risk & Portfolio The specific, pre-defined condition that proves a thesis wrong and requires the position to be closed — a level lost, a macro print that breaks the regime assumption, a guidance cut, a skew collapse, a correlation breakdown. Inverted yield curve Fixed Income A curve where short-dated yields exceed long-dated ones, because investors expect rates to fall and are willing to lock in long-term yields. Investment bank Markets & Instruments An intermediary that helps issuers raise capital, advises on mergers and acquisitions, and facilitates secondary-market trading and research. Investment grade Fixed Income Bonds rated BBB- or above, judged to have low default risk and suitable for conservative mandates such as pension funds. Investment horizon Risk & Portfolio The length of time capital is expected to stay invested before it is needed. Investment letter OHC Ecosystem A client-facing communication from One Horizon Capital summarising a strategy, position or performance, addressed personally and written numbers first, narrative second. Investor path OHC Ecosystem The course bundle at $1,099 aimed at members whose focus is longer-horizon investing — valuation, fixed income, equity analysis and portfolio construction. Iron condor Derivatives & Options Selling an out-of-the-money bull put spread and an out-of-the-money bear call spread on the same underlying and expiry. Issuer Fixed Income The entity borrowing the money — a government, corporation, municipality or special-purpose vehicle. IV percentile Volatility The share of days over the lookback period on which implied volatility was lower than it is today. IV rank Volatility Where current implied volatility sits between its lowest and highest readings over a lookback period, usually one year, expressed 0 to 100. IV vs HV spread Volatility The gap between implied and historical volatility — the market's expectation against what has actually been happening. Learning process Psychology & Process OHC's four-stage path to competence: build foundations in market concepts, develop and backtest strategies, practise on a demo account, then trade live starting small and scaling with confidence. Leg Derivatives & Options One individual option or stock component of a multi-part structure. Leg 1 re-test LMRSS The first significant pullback outside an established channel, where a bounce at the prior swing low confirms the trend is intact. Leg 2 continuation LMRSS The entry taken on the pullback that follows a new significant high or low in the trend, confirming the move still has room to run. Legging in Derivatives & Options Entering the components of a multi-leg structure separately rather than as a single combination order, usually to get a better fill or to build a position as a view develops. Leverage Risk & Portfolio Using borrowed money or derivatives to control a larger position than your capital alone would allow. Limit order Markets & Instruments An instruction to trade only at a specified price or better. Line chart Technical Analysis A chart connecting closing prices only, giving a clean view of direction with no intra-period detail. Liquidity Markets & Instruments How easily an asset can be converted to cash at close to its quoted price. Liquidity ratio Valuation & Fundamentals A ratio testing whether a company can meet its short-term obligations from short-term assets — principally the current ratio and quick ratio. Liquidity risk Risk & Portfolio The risk that a position cannot be exited quickly at a fair price, forcing either a loss or a delay. LMRSS LMRSS OHC's proprietary intraday day-trading framework: Location, Momentum, Rotation, Setup, Signal. LMRSS Checklist LMRSS The per-trade checklist that scores a setup against every component of the framework before execution — mental and emotional readiness, day type, trend and location on the 4-hour 50 EMA, market conditions and liquidity, the trigger, control across timeframes, momentum, rotation, the named setup, the EMA crossover confirmation, and then entry, stop, target, reward-to-risk and portfolio risk. Location (LMRSS) LMRSS The first LMRSS filter: is this a good area to be buying or selling? London session OHC Ecosystem The European trading window covered by the OHC Trade Room, roughly 06:00 to 12:00 GMT, spanning the Asian close and the European open. Long call Derivatives & Options Buying a call option: a bullish, defined-risk trade where the maximum loss is the premium paid and the upside is theoretically unlimited. Long put Derivatives & Options Buying a put option: a bearish, defined-risk trade where maximum loss is the premium and maximum gain is the strike less the premium, reached if the stock goes to zero. Loss aversion Psychology & Process The tendency to feel losses more intensely than equivalent gains, which leads to avoiding necessary risk, cutting winners early and refusing to close losers. Loss given default Fixed Income The proportion of exposure not expected to be recovered after a default, after collateral, guarantees and recoveries. Lower high Technical Analysis A rally that fails to reach the previous swing high, showing buying pressure weakening. Lower low Technical Analysis A decline below the previous swing low, confirming that sellers remain in control. Macaulay duration Fixed Income The weighted average time to receive a bond's cash flows, weighted by their present values. MACD Technical Analysis Moving Average Convergence Divergence: the 12-period EMA minus the 26-period EMA, plotted against a 9-period signal line. Margin Risk & Portfolio Collateral posted with a broker to support a leveraged or short position, adjusted as the position's value changes. Market capitalisation Markets & Instruments The total market value of a company's outstanding shares: share price times share count. Market multiple Valuation & Fundamentals A ratio comparing price to a fundamental measure — earnings, sales, book value, EBITDA — used to benchmark valuation across companies. Market order Markets & Instruments An instruction to buy or sell immediately at the best price currently available. Market risk Risk & Portfolio The risk that broad market movements reduce the value of a position, regardless of its own merits. Market trend Technical Analysis The direction of the broad market — the S&P 500, Nasdaq-100 and breadth measures — read on the 20, 50 and 200 EMA. Marking to market Derivatives & Options Revaluing a position at current market prices, with gains and losses settled as they arise rather than at expiry. Maturity Fixed Income The date on which the issuer repays the face value and the bond ceases to exist. Measured move Technical Analysis A projection that the next leg of a trend will travel a distance similar to the previous one, giving a structural profit target. Medium risk trade Derivatives & Options In the OHC options framework, the spread tier: bull call, bear put, bull put, bear call, calendars and diagonals. Mental rehearsal Psychology & Process Visualising decisions under pressure before they arise, so that the real moment is a repetition rather than a first attempt. Mentorship Psychology & Process Structured guidance from an experienced trader who provides accountability, shortens the learning curve, and helps navigate the emotional swings. Mezzanine debt Markets & Instruments Financing that blends debt and equity characteristics — lending at high rates, often with the right to convert part of the loan into equity. Mindfulness Psychology & Process Deliberate attention practices — meditation, controlled breathing, affirmations — used before and during a session to steady focus and reduce reactivity. Mind pillar OHC Ecosystem The OHC Group pillar concerned with knowledge, financial intelligence, emotional control and decision-making. Mispricing Valuation & Fundamentals A market price that has moved away from an asset's intrinsic value, creating an opportunity to buy below or avoid above. Modern portfolio theory Risk & Portfolio The framework showing that combining imperfectly correlated assets improves return per unit of risk, and that portfolios should be judged as a whole rather than position by position. Modified duration Fixed Income Macaulay duration divided by one plus the yield — the direct percentage price change for a 1% change in yield. Momentum Technical Analysis The speed and force behind a price move, and whether buyers or sellers currently have the upper hand. Momentum (LMRSS) LMRSS The second LMRSS filter, read on the 15-minute chart against the 50 EMA to give an objective view of who currently controls the market. Monetary policy Valuation & Fundamentals The central bank's management of interest rates and liquidity to meet inflation and growth objectives. Money market Markets & Instruments The market for short-dated, low-risk instruments — Treasury bills, commercial paper, certificates of deposit — used for safety and liquidity rather than return. Moneyness Derivatives & Options Where an option's strike sits relative to the current price of the underlying — in the money, at the money, or out of the money. Monte Carlo simulation Derivatives & Options Valuing a complex derivative by simulating thousands of random paths for the underlying and averaging the outcomes. Mortgage-backed security Markets & Instruments An asset-backed security whose collateral is a pool of residential or commercial mortgages. Moving average Technical Analysis A line plotting the average price over a set lookback, smoothing noise to reveal the underlying trend. Moving average crossover Technical Analysis One moving average crossing another, read as a shift in control between buyers and sellers. Multi-timeframe analysis Technical Analysis Reading the same instrument across several timeframes so that a trade aligns with the larger structure rather than fighting it. Municipal bond Fixed Income Debt issued by a local government or public agency to fund schools, roads and other public projects. Mutual fund Markets & Instruments A pooled investment vehicle managed by a professional, priced once daily, holding a mix of securities on behalf of many investors. Naked option Derivatives & Options A short option with no offsetting stock or long option behind it. Nasdaq-100 Markets & Instruments The index of the 100 largest non-financial companies listed on Nasdaq, heavily weighted to technology and growth. Net margin Valuation & Fundamentals Net profit as a percentage of revenue — how much of every pound of sales reaches the bottom line after all costs, interest and tax. New York session OHC Ecosystem The US trading window covered by the OHC Trade Room, roughly 14:30 to 17:00 GMT, spanning the US open and the European close. Non-farm payrolls Valuation & Fundamentals The monthly US employment report, one of the most market-moving scheduled data releases. Normal yield curve Fixed Income An upward-sloping curve where long-dated bonds yield more than short-dated ones, compensating investors for time and inflation uncertainty. Notional Risk & Portfolio The full face value of the exposure a position controls, as distinct from the capital actually committed. OHC Asset Management OHC Ecosystem The planned business for regulated long-only funds and managed accounts. OHC Clarity OHC Ecosystem The planned Mind-pillar business covering mental and behavioural performance — emotional intelligence, mindfulness, resilience and decision-making. OHC Digital OHC Ecosystem The live technology arm of the group: digital platforms, AI, data and the Traderoom OS that connect and scale the ecosystem. OHC Family Office OHC Ecosystem The planned business providing wealth structuring, preservation and multi-asset oversight for families. OHC Funds OHC Ecosystem The planned hedge fund and alternatives business, opening the proprietary edge to qualified investors. OHC Group OHC Ecosystem The umbrella covering the whole family of businesses, organised into three pillars — Mind, Body and Capital — connected by a Technology and Operations layer and run on one shared platform. OHC Impact OHC Ecosystem The planned ESG and impact-investing business — capital that creates change beyond returns. OHC Investment Process OHC Ecosystem The house sequence for putting money to work: define the goal — income, growth or balance — assess risk tolerance, select asset classes, run due diligence across fundamental, technical and sentiment analysis, structure the position with clear exit plans, then monitor and adjust. OHC Management OHC Ecosystem The live shared-services platform running finance, risk, compliance, technology and operations for every business in the group. OHC Options Framework Derivatives & Options The house structure for options decision-making: read direction and volatility, choose a structure that matches the market expectation, define primary and secondary exits before entry, then monitor and adjust. OHC Private Equity & Ventures OHC Ecosystem The planned business investing in and growing private companies and early-stage ventures. OHC Proprietary Trading OHC Ecosystem The live Capital-pillar business trading the firm's own capital on the LMRSS framework. OHC Trade Room OHC Ecosystem The education business, at ohctraderoom.com, and the Mind pillar's live business line. OHC Vitality OHC Ecosystem The planned Body-pillar business covering health, fitness and physical performance — fitness, nutrition, recovery, sleep and sustainable wellbeing. OHLC bar chart Technical Analysis A chart plotting open, high, low and close for each period as a vertical range with left and right ticks. One Horizon Capital OHC Ecosystem The parent group and the boutique firm side of the business, at onehorizoncapital.com. Open interest Derivatives & Options The number of option contracts currently outstanding at a given strike and expiry. Operating cash flow Valuation & Fundamentals Cash generated by the core business, before investment and financing. Operating margin Valuation & Fundamentals Operating profit as a percentage of revenue — profitability after production and running costs but before interest and tax. Operational risk Risk & Portfolio The risk of loss from internal failures — systems outages, process breakdowns, human error, fraud. Option Derivatives & Options A contract giving the buyer the right, but not the obligation, to buy or sell an asset at a set strike price within a set time — while the seller carries the obligation to perform if exercised. Optionable instrument OHC Ecosystem A security with a listed options market deep enough to structure trades around. Option chain Derivatives & Options The screen listing every available strike and expiry for an underlying, with bids, asks, volume, open interest, implied volatility and the Greeks. Options Clearing Corporation Derivatives & Options The central clearing house for US listed options: it standardises contract terms and symbols, guarantees performance and runs the assignment process. Option symbol Derivatives & Options The standardised code identifying an exact contract — underlying ticker, expiry date, right and strike, as in AAPL230119C150. Oscillator Technical Analysis A momentum indicator bounded between an upper and lower value, used to identify overbought and oversold conditions and momentum shifts. Out of the money Derivatives & Options An option with no intrinsic value — a call struck above the market, or a put struck below it. Over-the-counter Markets & Instruments Trading conducted directly between two parties rather than through a central exchange, as in the foreign exchange market and much of the corporate bond market. Overbought Technical Analysis A condition where an oscillator reads at the top of its range, suggesting the recent advance has been fast and may pause or reverse. Overconfidence bias Psychology & Process Over-estimating your own ability to read or beat the market, usually after a winning streak. Oversold Technical Analysis A condition where an oscillator reads at the bottom of its range, suggesting selling has been rapid and may be exhausting. Passive investing Markets & Instruments Buying and holding a diversified portfolio that tracks a market index, accepting the market return rather than trying to beat it. Patience Psychology & Process Waiting for a setup that meets the criteria rather than manufacturing one out of boredom. Payoff diagram Derivatives & Options The chart of a position's profit and loss against the underlying's price at expiry, showing breakevens, maximum gain and maximum loss. Payout ratio Valuation & Fundamentals The share of earnings paid out as dividends rather than retained. PEG ratio Valuation & Fundamentals The P/E ratio divided by the expected earnings growth rate, so a P/E of 20 with 10% growth gives a PEG of 2. Perfectionist mindset Psychology & Process The trap of demanding flawless execution and treating every mistake as failure, which produces hesitation, over-analysis and self-punishment. Performance anxiety Psychology & Process Stress about executing correctly that itself degrades execution — hesitation on valid setups, second-guessing, physical tension. Portfolio manager Markets & Instruments A professional who runs a portfolio on behalf of clients or an institution, responsible for allocation, selection, risk and reporting. Position sizing Risk & Portfolio Deciding how much capital to commit to a given trade, which matters more to long-run outcomes than entry precision. Post-trade review Psychology & Process The structured examination of a closed position: realised P&L, attribution across the Greeks, exit reason, whether entry and sizing matched the plan, whether the catalyst materialised, and what changes to the playbook follow. Pre-market preparation Psychology & Process The work done before the session opens: setting intentions, reviewing the economic calendar, marking key levels, forming a day-type expectation and writing the game plan. Preferred stock Markets & Instruments A share class that pays a fixed dividend and ranks ahead of common stock in liquidation, but usually carries no vote. Premium Derivatives & Options The price paid by an option buyer and received by an option seller, quoted per share and multiplied by the contract size. Premium bond Fixed Income A bond trading above its face value, typically because its coupon is higher than current market rates. Present value Valuation & Fundamentals The value today of a cash flow expected in the future, after discounting it at an appropriate rate. Price-to-book ratio Valuation & Fundamentals Share price divided by book value per share — market price against accounting net worth. Price-to-earnings ratio Valuation & Fundamentals Share price divided by earnings per share — how much investors are paying for each unit of current profit. Price-to-sales ratio Valuation & Fundamentals Share price divided by revenue per share, used where earnings are negative, volatile or immature. Price action Technical Analysis Reading the market directly from the movement of price itself — structure, swings, candles, reaction at levels — rather than from derived indicators. Price action cycle LMRSS The repeating structural sequence LMRSS teaches — consolidation setup, break of structure, Fibonacci pullback, channelling, leg tests, and eventually the channel break and final test. Price discovery Markets & Instruments The process by which the interaction of buyers and sellers establishes a fair market price. Primary exit Derivatives & Options The planned exit taken when the thesis works — a target ROI, an assignment at the short strike, an expiry worthless, or a price objective reached. Primary market Markets & Instruments The market in which new securities are issued directly by a company, government or special entity to raise capital, typically via an IPO or a bond issue. Private equity Markets & Instruments Investment in companies that are not publicly listed, typically with a multi-year horizon and an active role in the business. Probability of default Fixed Income The estimated likelihood that a borrower will default over a given period, derived from historical data, financial ratios and macro conditions. Process over outcome Psychology & Process Judging a trade by whether it was executed correctly, not by whether it made money. Profit target 1 LMRSS The first planned profit level in an LMRSS trade, where 70% of the position is closed and the remaining 30% is left to run on a trailing stop with the stop moved to break-even. Protective put Derivatives & Options Buying a put against a long stock position as insurance, capping the downside while leaving the upside intact. Pullback Technical Analysis A temporary counter-trend move within an established trend, offering a better entry price than chasing the extension. Put/call ratio Technical Analysis The ratio of put volume or open interest to call volume or open interest, used as a contrarian sentiment gauge. Put calendar spread Derivatives & Options A calendar built from puts: sell the front-month put, buy the later-dated put at the same strike. Put option Derivatives & Options An option giving the holder the right to sell the underlying at the strike price. Quick ratio Valuation & Fundamentals A stricter liquidity test than the current ratio, excluding inventory and prepayments to count only the most readily convertible assets. R-multiple Risk & Portfolio A trade's result expressed as a multiple of the amount risked: risking £100 and making £250 is a +2.5R trade. Range day LMRSS A day type where price oscillates between a defined high and low without directional resolution, common in low-news environments. Rating agency Fixed Income An organisation such as Moody's or S&P that assigns credit ratings based on financial statements, market conditions and management quality. Ratio analysis Valuation & Fundamentals The quantitative side of fundamental analysis: reading liquidity, profitability, leverage and efficiency ratios from the financial statements to compare a company against its history and its peers. Ratio backspread Derivatives & Options A ratio structure weighted toward the long side — typically short one nearer option and long two further options — giving limited risk and open-ended reward if the move is large enough. Ratio spread Derivatives & Options A spread with an unequal number of long and short options — for example one long call against two short calls. Real asset Markets & Instruments A physical, tangible investment such as property, land, infrastructure or agricultural holdings. Real estate Markets & Instruments Property held as an investment — residential, commercial, industrial or land — generating income from rent and return from appreciation. Real estate investment trust Markets & Instruments A listed vehicle that owns income-producing property and distributes most of its income to shareholders. Rebalancing Risk & Portfolio Periodically trading back to the target allocation after market moves have drifted it away. Regulator Markets & Instruments A public body that supervises market conduct, protects investors and enforces securities law — the SEC, FINRA and CFTC in the US, and their equivalents elsewhere. Reinvestment risk Fixed Income The risk that coupons or redeemed principal must be reinvested at lower rates than the original investment earned. Relative strength index Technical Analysis A momentum oscillator scaled 0 to 100 comparing the size of recent gains to recent losses. Relative volume Volatility Today's traded volume compared with the typical volume for the same point in the session. Resistance Technical Analysis A price area where selling has previously overcome buying, capping advances and turning price back down. Retest Technical Analysis Price returning to a level it has just broken through, to test whether the level now holds in its new role — old resistance as support, or old support as resistance. Retracement Technical Analysis The proportion of a prior move that price gives back before resuming. Return on assets Valuation & Fundamentals Net profit divided by total assets — how efficiently the whole asset base is converted into profit, regardless of how it was funded. Return on equity Valuation & Fundamentals Net profit divided by shareholders' equity — the profit generated per unit of owner capital. Return on invested capital Valuation & Fundamentals Operating profit after tax divided by the debt and equity actually invested in the business. Revenue Valuation & Fundamentals The total value of goods and services sold in a period, before any costs — the top line. Reversal Technical Analysis A change in the prevailing trend direction, from up to down or down to up. Reverse skew Volatility The equity-index pattern in which out-of-the-money puts trade at higher implied volatility than out-of-the-money calls. Reward-to-risk ratio Risk & Portfolio The ratio of expected profit to the amount risked on a trade, stated before entry. Rho Derivatives & Options How much an option's value changes with interest rates. Rising wedge Technical Analysis A pattern of two upward-sloping converging lines, where advances are getting smaller despite the rising slope. Risk-adjusted return Risk & Portfolio Return assessed relative to the risk taken to achieve it, rather than in isolation. Risk-free rate Fixed Income The yield on a high-quality government bond, used as the baseline against which all other returns and spreads are measured. Risk management Risk & Portfolio The whole discipline of identifying, assessing and mitigating what can go wrong — position sizing, stops, diversification, hedging, exposure limits and rules about when not to trade. Risk per trade Risk & Portfolio The fixed proportion of capital an individual trade is allowed to lose, set before entry and enforced by the stop. Risk tolerance Risk & Portfolio How much loss an investor can bear, financially and emotionally, in pursuit of return. Roll Derivatives & Options Closing an existing option and opening a replacement at a different strike, a different expiry, or both. Roll up and out Derivatives & Options Moving a short option to a higher strike in a later expiry, preferably for a net credit — the standard defensive adjustment on a covered call or short call that is going in the money. Rotation (LMRSS) LMRSS The third LMRSS filter, using the stochastic oscillator on the 4-hour and 1-hour charts to time the transition between bullish and bearish phases. Runaway day LMRSS A day type where the market is fully bid or fully offered and the trend is self-reinforcing, with no meaningful pullback for thirty minutes or more. S&P 500 Markets & Instruments The index of 500 large US companies across all sectors, and the standard proxy for the US equity market. Scalping LMRSS Taking many very short-duration trades for small gains each, holding for minutes or seconds. Scenario analysis Risk & Portfolio Testing how a position or portfolio performs under specific defined states of the world — a rapid recovery, a slowdown, a rate shock. Scripting outcomes Psychology & Process Writing out every scenario a trade could produce — good and bad — together with the planned response to each. Secondary exit Derivatives & Options The planned defensive exit taken when the thesis fails — a loss threshold, a time stop, a volatility stop, or a conversion into a spread to limit further damage. Secondary market Markets & Instruments The market where investors trade already-issued securities among themselves; the issuing company receives none of the proceeds. Securitisation Markets & Instruments Bundling cash-flow-generating assets — mortgages, loans, credit card receivables, auto loans — into tradeable securities sold to investors. Security Markets & Instruments A tradeable financial instrument representing either ownership (equity) or a debt owed (fixed income), or a claim derived from one of those. Sell to close Derivatives & Options The order that exits an existing long option position, realising the gain or loss. Sell to open Derivatives & Options The order that opens a short option position, collecting premium and taking on the obligation to perform. Senior debt Markets & Instruments The layer of borrowing with the highest repayment priority and, correspondingly, the lowest interest rate. Sensitivity analysis Valuation & Fundamentals Re-running a valuation with different assumptions — growth, discount rate, margin — to see how much the answer moves. Sentiment analysis Technical Analysis Reading the market's collective mood — fear, greed, positioning — as a driver of short-term price movement independent of fundamentals. Session recap OHC Ecosystem The public, group-facing write-up published after a Trade Room session: market context, day type, key levels, how the framework read the tape, notable setups and decisions as teaching, one takeaway, the look-ahead and the disclaimer. Setup (LMRSS) LMRSS The fourth LMRSS filter: the specific, named chart pattern that defines where you would enter. Sharpe ratio Risk & Portfolio Return above the risk-free rate divided by the volatility of those returns — return per unit of total risk. Shooting star Technical Analysis A candle with a small body at the bottom and a long upper wick, appearing after a rally. Short call Derivatives & Options Selling a call without owning the underlying: a credit trade with limited reward (the premium) and theoretically unlimited risk, since price has no ceiling. Short float Markets & Instruments The percentage of a company's free float that has been sold short. Short put Derivatives & Options Selling a put: a credit trade suited to stagnant or bullish expectations, where the premium is the reward and the risk is the strike less the premium if the stock collapses. Short selling Markets & Instruments Selling a security you do not own, borrowing it to deliver, in the expectation of buying it back lower. Signal (LMRSS) LMRSS The final LMRSS filter: the EMA crossover on the 1-minute and 3-minute charts that pinpoints the entry and shows when control changes hands. Simple moving average Technical Analysis A moving average weighting every period in the lookback equally. Slippage Markets & Instruments The difference between the price you expected on entry or exit and the price you actually got. Sovereign credit memo Fixed Income A country-level credit note prepared for each jurisdiction the fixed-income portfolio invests in, identifying the parameters to monitor, rating stability and the regulatory framework. Spike reversal LMRSS An LMRSS setup where a sharp, exhaustive move into a key level reverses hard, trapping the participants who chased it. Spot-futures parity Derivatives & Options The no-arbitrage relationship linking the spot price, the risk-free rate and time to maturity to the fair forward price. Spot rate Fixed Income The yield on a zero-coupon cash flow for a single specific maturity, with no reinvestment assumptions. Standard deviation Volatility The statistical measure of dispersion around an average, and the mathematical basis of both historical volatility and Bollinger Bands. Stochastic oscillator Technical Analysis A momentum oscillator comparing the current close to the recent high-low range, scaled 0 to 100 with 80 and 20 as the conventional extremes. Stock market index Markets & Instruments A rules-based basket of securities used to measure the performance of a market or segment — the S&P 500, the Nasdaq Composite, the Dow. Stop-loss order Markets & Instruments A resting order that closes a position once price reaches a pre-set adverse level, capping the loss on the trade. Straddle Derivatives & Options Buying a call and a put at the same strike and expiry — a pure volatility trade with no directional bias. Strangle Derivatives & Options Buying an out-of-the-money call and an out-of-the-money put with the same expiry — a cheaper volatility trade than a straddle. Strategic asset allocation Risk & Portfolio The long-term target mix of asset classes, set from goals, risk tolerance and time horizon and intended to hold across cycles. Stress testing Fixed Income Running a portfolio through deliberately severe scenarios to see what breaks — large rate shocks, spread blowouts, liquidity withdrawal. Strike price Derivatives & Options The price at which an option can be exercised, fixed when the contract is written. Subordinated debt Markets & Instruments Debt ranking below senior obligations in a liquidation, compensated by a higher interest rate. Supply zone Technical Analysis An area where heavy selling previously occurred, often marked by a run of large bearish candles. Support Technical Analysis A price area where buying has previously overcome selling, causing price to stop falling and turn back up. Surgical mindset Psychology & Process The mental model taught in Module 6.3.1: approach trading the way a surgeon approaches an operation — rehearse and visualise scenarios in advance, script every possible outcome and the response to it, eliminate distractions, and practise deliberately. Swap Fixed Income A contract in which two parties exchange cash flows on agreed terms — interest rate, currency, credit or commodity. Swaption Fixed Income An option giving the right, but not the obligation, to enter a swap on agreed terms at a future date, in exchange for an upfront premium. Swing high Technical Analysis A local peak where price stops rising and turns down — a turning point marking where sellers took control. Swing low Technical Analysis A local trough where price stops falling and turns up, marking where buyers stepped in. Symmetrical triangle Technical Analysis A pattern of converging lower highs and higher lows, showing compression with no directional bias. Systematic risk Risk & Portfolio Risk inherent to the whole market or economy — rates, inflation, recession, geopolitics — which diversification within an asset class cannot remove. Tactical asset allocation Risk & Portfolio Short-term deviations from the strategic mix to reflect current market conditions or a specific opportunity. Technical analysis Technical Analysis The study of historical price and volume to anticipate future price movement. Technology & Operations OHC Ecosystem The layer connecting the OHC Group's pillars and running the shared services that keep the group lean. Terminal value Valuation & Fundamentals The estimated value of all cash flows beyond the explicit forecast period in a DCF, usually the largest single component of the answer. Term structure of interest rates Fixed Income The formal name for the relationship between time to maturity and yield, visualised as the yield curve. Theta Derivatives & Options The daily erosion of an option's extrinsic value from the passage of time. Ticker symbol Markets & Instruments The short exchange code identifying a listed security — AAPL, QQQ, NDX. Tilt Psychology & Process The state of trading emotionally after a loss, a missed move or a run of frustration — sizing up to get even, taking setups outside the plan, abandoning the process. Time decay Derivatives & Options The steady loss of an option's extrinsic value as expiration approaches, measured by theta. Time stop Derivatives & Options An exit rule based on the calendar rather than the price — close the position at a set days-to-expiration or after a set number of days regardless of where it is trading. Time value of money Valuation & Fundamentals The principle that a pound today is worth more than a pound tomorrow, because today's pound can be put to work. Total return Markets & Instruments The full return on an investment counting both price change and income — dividends, coupons, distributions — over the holding period. Trade management Risk & Portfolio Everything that happens between entry and exit — monitoring, adjusting, hedging, scaling out, moving stops. Trade memo OHC Ecosystem OHC's research write-up for an equity or credit idea, running from macro and market trend through fundamentals, technicals, sentiment and volatility, to structure, sizing, entry and exit framework, invalidation, trade management, sign-off and post-trade review. Trader Markets & Instruments A market participant who buys and sells securities to profit from price movement rather than long-term ownership. Traderoom OS OHC Ecosystem The platform through which OHC Trade Room delivers its education — courses, assessments, workshops and live sessions. Trade Room session OHC Ecosystem A live market session run for OHC Trade Room members, where the LMRSS read is applied in real time and taught as it happens. Trader path OHC Ecosystem The course bundle at $899 aimed at members whose focus is active trading, built around technical analysis, day trading and the LMRSS framework. Trading journal Psychology & Process A written record of every trade — the setup, the reasoning, the execution, the outcome and the lesson. Trading plan Psychology & Process The written document defining what you trade, when, at what size, with what stops and targets, and under what conditions you do not trade at all. Trading psychology Psychology & Process The study and management of how emotion, bias and mindset affect trading decisions. Trading range Technical Analysis A sideways market oscillating between a defined high and low without a directional bias. Trading routine Psychology & Process The repeatable daily structure around trading — physical preparation, mindfulness, market review, the pre-market game plan, execution, then post-session assessment and study. Trading session windows LMRSS The intraday periods LMRSS trades, chosen for liquidity and volatility: the morning session from 06:00 to 12:00 GMT around the Asian close and European open, the afternoon session from 14:30 to 17:00 GMT covering the US open and European close, and a quieter evening session from 18:30 to 21:00 GMT. Trailing stop Risk & Portfolio A stop that moves with price in the favourable direction, locking in gains while leaving room for the trend to continue. Treasury bill Markets & Instruments A short-dated government debt instrument, issued at a discount and redeemed at face value, with no coupon. Trend Technical Analysis The prevailing direction of price over a chosen timeframe — up, down or sideways. Trend day LMRSS A day type driven by a strong directional move, usually on a news catalyst, where the full LMRSS cycle plays out. Trendline Technical Analysis A line drawn along successive swing lows in an uptrend, or swing highs in a downtrend, mapping the trend's slope. Trend trade LMRSS An LMRSS entry taken in the direction of the prevailing trend, ideally on a pullback to the 50 EMA on both the 1-hour and 4-hour charts. Treynor ratio Risk & Portfolio Excess return divided by beta — return per unit of market risk rather than per unit of total risk. Triple bottom Technical Analysis Three tests of the same support level without a break, indicating that selling pressure has been exhausted. Two-legged pullback LMRSS A structured retracement that unfolds in two distinct moves rather than one, typical of profit-taking after a big move. Ultimate path OHC Ecosystem The complete course bundle at $1,499, covering the full published curriculum across investing and trading. Undefined risk Derivatives & Options A position whose potential loss has no fixed ceiling, typically a naked short option. Underlying Markets & Instruments The asset from which a derivative takes its value — the stock, index, ETF, future or currency pair beneath an option contract. Underwriter Markets & Instruments The investment bank that manages a new issue — pricing it, distributing it and often buying it from the issuer before reselling to investors. Uptrend Technical Analysis A sequence of higher highs and higher lows, indicating buyers in control. Valuation Valuation & Fundamentals The discipline of estimating what an asset is genuinely worth, as distinct from what it currently trades at. Value stock Markets & Instruments A company trading below what its fundamentals suggest it is worth, offering a return if and when the market re-rates it. Vega Derivatives & Options How much an option's extrinsic value changes for a one-point move in implied volatility. Venture capital Markets & Instruments Equity investment in early-stage private companies, accepting a high failure rate in exchange for outsized returns from the few that succeed. Vertical spread Derivatives & Options Buying one option and selling another of the same type and expiry at a different strike. VIX Volatility The index of implied volatility on S&P 500 options over the next 30 days, widely called the investor fear gauge. Volatility Volatility The degree to which a price fluctuates, and the market's shorthand for uncertainty. Volatility regime Volatility The prevailing state of market volatility — sustained low, sustained high, or transitioning — which shifts with economic cycles and major events. Volatility skew Volatility The pattern of implied volatility differing across strikes for the same expiry, reflecting where the market perceives risk. Volatility smile Volatility The curve produced when out-of-the-money and in-the-money options both carry higher implied volatility than at-the-money ones, giving a symmetric U shape. Volatility term structure Volatility The pattern of implied volatility across different expiries for the same underlying. Vol crush Volatility The sharp collapse in implied volatility immediately after a known event such as earnings, once the uncertainty that was being priced disappears. Vol stop Derivatives & Options An exit rule triggered by a change in implied volatility rather than price — for example closing once IV has reverted to a target or once the expected vol crush has happened. Volume Markets & Instruments The number of shares or contracts traded in a period. Volume analysis Technical Analysis Reading traded volume alongside price to judge conviction. VWAP Technical Analysis Volume-weighted average price: the average price traded over a session, weighted by volume. VXN Volatility The Nasdaq-100 equivalent of the VIX, measuring implied volatility on NDX options. Watchlist OHC Ecosystem The curated list of optionable, liquid instruments OHC monitors for setups, built from screening criteria: at least one million shares average daily volume, at least 50% institutional ownership, growth relative to industry, management metrics, and reasonable P/E and PEG. Working capital Valuation & Fundamentals The short-term capital tied up running the business: current assets less current liabilities, mostly inventory, receivables and payables. Workshop OHC Ecosystem The applied sessions that sit alongside the recorded curriculum — Day Trading (LMRSS), Equity & Derivatives, and Fixed Income — each with a guide plus working templates such as the per-trade checklist, watchlist builder, trade memo template and fixed income workbook. Yield Fixed Income The return a bond delivers, expressed as an annual rate. Yield curve Fixed Income The plot of yields against maturities for bonds of similar credit quality — the market's price of time. Yield curve cycle Fixed Income The way the curve's shape evolves through the economic cycle: normal in growth, flattening at the peak, inverted into a slowdown, steepening out of recession. Yield to maturity Fixed Income The single discount rate that equates a bond's future coupons and principal repayment to its current market price — the all-in annual return if held to maturity. Zero-coupon bond Fixed Income A bond that pays no interest, issued at a discount and redeemed at face value, so the whole return comes from the price gain.