Archives: Glossary Terms

Composite Market Profiles

In addition to monitoring the previous day’s Market profile, we can also create compositeIn addition to monitoring the previous day’s Market prof… More profiles.  A compositeIn addition to monitoring the previous day’s Market prof… More profile is any profile with two or more sessions.Market Profiles with fixed periodicities, such as Weekly, Monthly, or Yearly Market…

By The Balanced Trader June 24, 2022 Off

Delta hedging

Delta hedgingDelta hedging seeks to mitigate, or hedge, the directional r… More seeks to mitigate, or hedge, the directional risk associated with underlying asset price movements. The strategy employs buying and selling of derivatives to mitigate the risk of a single other option holding or an entire portfolio of holdings. Market makers seek to achieve deltaDelta…

By The Balanced Trader June 25, 2022 Off

Failed Auction

Auctions out of the Initial BalanceInitial balance in the futures is traditionally the first ho… More but is unable to hold onOvernight Session More to and falls(fails) back inside. I use this term for other important references as well that fail similarly.

By The Balanced Trader June 24, 2022 Off

Gamma Hedging

Gamma hedgingGamma hedging is used to reduce the exposure of an option po… More is used to reduce the exposure of an option position to large movements in the underlying security. Gamma hedgingGamma hedging is used to reduce the exposure of an option po… More is also used at option expiration to mitigate the effect…

By The Balanced Trader June 25, 2022 Off

HVN

High volume node, or peak. An area that has been well traded(volume), and or spent a long time of acceptance. Usually areas of consensus between buyers and sellers.

By The Balanced Trader July 1, 2022 Off

Initial Balance

Initial balanceInitial balance in the futures is traditionally the first ho… More in the futures is traditionally the first hour of trade after the opening bell. Even though markets are now virtually 24/7 they tend to follow a historical rhythm with an opening and closing that yields the busiest trading periods of the day. This…

By The Balanced Trader June 24, 2022 Off