Units of Risk

Or “R Unit,” a unit of risk is a concept used to dampen the emotional strain of measuring trading performance in dollars.  It is represented as a ratio and provides a means to compare real-world trading performance versus probable performance.  It can be...

Yield Farming

In decentralized finance (DeFi), yield farming is a process that allows a cryptocurrency holder to lock up their holdings and receive rewards from them.  Specifically, it’s a process that allows the holder to earn fixed (or variable) interest by investing their...

Volatility

A statistical measurement of the dispersion of returns for a given security or market index.  In general terms, the higher the volatility, the riskier the security.  Within securities markets, volatility is often associated with big swings in either direction.  For...

Vega

A part of a group of measurements known as the “Greeks” which are used in options pricing.  Vega is the Greek that measures an option’s sensitivity to implied volatility.  It is the change in an option’s price for a one-point change in implied...

V Bottom

A bullish pattern created by a sharp V-shaped trough.  The trough is created by investor irrationality causing a sudden price fall and a subsequent reversal of the short-term bearish movement.  Thus, a V Bottom often occurs in a bearish trend and announces a trend...