Glossary
A
absorb: the market digesting your entry so that your footprint is no longer actionable, the book has normalized (bid and ask refilled to normal depth), the sweep or microburst caused by your fill has resolved, liquidity has restacked, and the opposing side has stopped reacting to your presence. Absorption takes a few ticks.
abstain: to decide to not invest.
abstract (verb): to concoct a symbolic construct.
abstraction: a symbolic representation. Compare concept.
active order: an order that moves price. Market orders are active orders. Contrast passive order.
active trading: holding a stock for a short duration, from minutes to a few days or weeks; churning stocks.
adept: skillful; proficient.
adjunct: something joined to another thing but not an integral part of it; supplement; accessory.
ADR (American Depositary Receipt): a US‑listed proxy for a foreign stock.
affiliate: to be connected, typically as a subordinate.
agnostic: uncommitted.
AI (artificial intelligence): analytic pattern-oriented software that outputs results which seem remarkably intelligent. The original commercial application of AI was analyzing financial patterns.
aka: also known as.
algo: algorithmic trading.
algorithmic trading (aka automated trading or algo): rule-based software stock trading. More than 80% of US stock trading is automated.
alpha: how well a stock outperforms a benchmark index.
ambient: a minuteable stock from the perspective of velocity. Compare ballistic, sloth.
amenable: agreeable; accomodating.
AON (all or none): an advanced Trade Bar order setting to have the order filled entirely or not at all.
apt: appropriate; suitable.
ASAP: as soon as possible.
ask: the lowest price a seller will accept. Compare bid.
asset: a financial instrument that may be invested in; an economic entity that generates revenue.
assume: suppose or take for granted.
auction: the real‑time process that turns order flow into price; the continuous interaction of orders that produces prints and moves price.
augment: make greater.
automated: software controlled.
avert: avoid; prevent.
awareness: being conscious; the exercise of consciousness.
axiom: an unquestioned assumption.