Market Structure
How markets are organized and how they function.
How markets are organized and how they function.
26 terms in this category
A
Accumulation Phase
Accumulation phase is the market stage where institutional buyers absorb supply at depressed prices, forming a sideways base before a sustained markup rally begins.
After-Hours Trading
After-hours trading is buying or selling stocks outside the 9:30 AM–4:00 PM ET session, with lower liquidity, wider spreads, and elevated gap risk at the next open.
B
Bid-Ask Spread
The bid-ask spread is the difference between the highest price buyers will pay (bid) and the lowest price sellers will accept (ask).
BSE (Bombay Stock Exchange)
BSE is Asia's oldest stock exchange, located in Mumbai, and home to the Sensex index tracking 30 major Indian companies.
Buying Power
Buying power is the total dollar value of securities a trader can purchase using account equity plus available margin, split into overnight (2:1) and intraday (4:1) limits.
C
Capitulation
Capitulation is the moment a critical mass of investors simultaneously abandon positions in panic, creating a climactic volume spike that often signals a durable market bottom.
Circuit Breaker
Circuit breakers are automatic trading halts triggered when market indices fall by preset percentages, designed to prevent panic selling.
D
Dark Pool
A dark pool is a private exchange where large institutional orders are executed anonymously, hidden from public markets until after completion.
Demat Account
A demat (dematerialized) account holds your shares and securities in electronic form, replacing physical share certificates.
Distribution Phase
Distribution phase is the market stage where institutional operators systematically sell large positions into retail demand near price peaks, preceding a markdown decline.
L
M
Market Cycle
Market cycle is the recurring four-phase sequence — accumulation, markup, distribution, and markdown — that nearly every tradable asset moves through as participant sentiment shifts.
Market Maker
A market maker is a firm that provides liquidity by continuously quoting buy and sell prices, profiting from the bid-ask spread.
S
SEBI
SEBI is India's statutory securities regulator, overseeing NSE, BSE, brokers, and FPIs — enforcing margin rules, circuit breakers, and position limits.
Settlement
Settlement is the process of transferring shares to buyer and money to seller after a trade, completed T+1 days after the trade in India.
Short Interest
Short interest is the total shares sold short and not yet covered, expressed as a percentage of float, used to gauge bearish sentiment and squeeze potential.
Slippage
Slippage is the difference between the expected price of a trade and the actual price at which it executes.
Smart Money
Smart money is capital deployed by institutions — banks, hedge funds, and central banks — with informational and analytical advantages that allow them to move markets.
Stock Float
Stock Float is the number of shares available for public trading, calculated as total shares outstanding minus restricted insider and locked-up shares.
Stock Split
Stock Split is a corporate action that increases shares outstanding by issuing additional shares proportionally, reducing the per-share price without changing market cap.