Plain-English definitions for all 107 terms the course teaches, each linking to the lesson that actually teaches it — and to the other lessons where it comes up.
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A
Advance tax
Tax paid in four instalments during the year, not at filing. F&O profits are business income, so the instalments apply to you once the bill crosses ₹10,000.
Your broker closing your position for you: at the intraday cut-off for MIS orders, or on a margin shortfall it decides not to carry. Its price, not yours.
The gap between the best buying and selling price: the toll you pay to enter and exit any position, charged once on the way in and once on the way out.
One entry order carrying its own target and stop loss, both placed automatically on fill. Intraday only, and withdrawn by several Indian brokers — check before you rely on it.
Rolling an unabsorbed F&O loss into future years — up to eight — to set off against later business profit. Only survives if the return is filed by the due date.
The extra margin the exchange stacks on ITM stock-option positions through expiry week, because they may end in real share delivery. It ramps daily and is not optional.
A withdrawn facility that once let close-to-the-money stock options lapse instead of settling physically. Assume it is unavailable: every ITM stock option at the bell becomes delivery.
The exchange's cushion on top of SPAN, sized to the contract's value rather than to a simulated bad day. SPAN + exposure is what actually gets blocked.
The largest quantity NSE accepts in one F&O order — about 1,800 units (≈27 lots) on NIFTY. Bigger orders are rejected, not queued: you split them yourself.
A broker-side resting instruction that watches the market for up to a year and fires an order when your trigger prints. Not an exchange order until it fires.
Controlling a large notional position with a small outlay. One NIFTY lot at ₹7,800 of premium moves with ₹16.25 lakh of index — which is why small index moves swing your P&L in double digits, both ways.
An order with a price ceiling (buying) or floor (selling). It may not fill; it can never fill at a price you did not agree to. The default for options.
Blocked margin exceeding what your account can cover, usually after an MTM debit. It carries an exchange penalty per day and licenses the broker to square you off.
An order that takes whatever price the book offers right now. Fast, certain to fill, and on a thin option strike the most expensive button on the screen.
Product types: MIS is intraday, auto-squared-off before the close and cheaper on margin; NRML is carry-forward, full margin, your exit on your schedule.
Your open position revalued at the day's settlement price, with the difference credited or debited daily. Losses leave the account before you close anything.
The intraday snapshot rule: margin is checked at random moments through the day, so the requirement you must satisfy is your worst moment, not your closing one.
A SEBI registration that permits publishing research and recommendations, but not managing your money or promising outcomes. Registration number starts INH.
A SEBI Registered Investment Adviser: fee-only, fiduciary, registration number starting INA, verifiable free on the SEBI site. Nobody in a paid Telegram group is one by default.
Netting a loss against other income in the same year. F&O losses set off against most heads except salary — and never against future income unless carried forward.
The exchange's core margin for option sellers, computed by simulating a portfolio through a grid of price and volatility shocks and charging the worst outcome.
The tax split that decides how losses travel. Exchange-traded F&O is non-speculative business income; intraday equity is speculative, and their losses do not mix freely.
A tax on trades. The trap: on an ITM option left to expire, STT is charged on the whole settlement value, not the premium — which is why traders sell before the bell.
A chartered accountant's audit of your trading books, triggered by turnover and profit-declaration thresholds under section 44AB / 44AD. Cheap to comply with, expensive to ignore.
A written record of every trade made before the outcome is known: the reason, the plan, and later the result. The one honest witness to how you actually trade.
For tax, not the value traded: the sum of absolute profits and losses on settled trades. Small profits routinely sit on very large turnovers, which is why it decides the audit question and nothing else.