Breakout: Technical analysis term for a rise in a securities price above a resistance level (usually its previous high) or drop below a support level (usually its previous low).

At Market: An order instruction to a broker requiring the order to be filled at the current market price. That is, a seller accepts the price offered by the highest bidder or a buyer pays the price offered by the lowest seller.

At-the-Money: A condition in which the strike price of an option is equal to (or nearly equal to) the market price of the underlying security.

At best: An order instruction to a broker requiring the order to be filled at whatever price is required to complete the order quantity.

Call option: A call option is a financial instrument derived from an underlying asset (i.e. a share) which gives the holder the right, but not the obligation, to buy a specified quantity of the underlying asset at a specific price (know as the ‘strike price’) on or before a specified date (known as the ‘expiry date’).

Channel: Two lines describing a series of tops and a series of bottoms which define the range of a security’s price extremes over a period of time. 

Gap: A significant price movement of a security between two trading periods, such that there is no overlap in the trading price ranges for the two periods. 

Fill: The price at which an order is executed. 

In-the-Money: Situation in which an option's strike price is below the current market price of the underlier (for a call option) or above the current market price of the underlier (for a put option). Such an option has intrinsic value. 

Limit: An order instruction to a broker requiring the order to be filled at a specific price limit.

Long/Long Position: Signifies the ownership of a stock. If you buy a stock in the expectation that the price will increase, you are taking a ‘long position’. 

OCO (One Cancels the Other): An order instruction to a broker where two alternative orders are placed. When one of the alternative orders is filled, the other order is cancelled. 

On open: An order to transact the order in the opening market.

Out-of-the-money: Indicates that the option has no intrinsic value. In the case of a call option, when the price of the security is below the strike price, or in the case of a put option, when the price of the security is above the strike price.

Put option: A put option is a financial instrument derived from an underlying asset (i.e. a share) which gives the holder the right, but not the obligation, to sell a specified quantity of the underlying asset at a specific price (know as the ‘strike price’) on or before a specified date (known as the ‘expiry date’).

Resistance: In technical analysis, resistance occurs when a share on an upward trend has difficulty moving beyond a certain price level.

Security: A document issued by a party acceptable to market participants, offering evidence of ownership of an asset whereby possession of the document signifies ownership. Transfer of ownership requires the presentation or handing over of the security. More generally the term is applied to all shares, debentures, notes, bills, government and semi-government bonds, their derivatives (but not futures) and offered on primary or secondary markets.

Sideways: In technical analysis, when a share trades within a ‘Channel’ running parallel to the X axis for a period of time.

Short/Short Position: Traders take a short position when they expect the price of a given security to fall. This is done by borrowing the security and selling it in anticipation of profiting by being able to buy the security back at a lower price in order to repay the security lender. Not all stocks are authorised as ‘shortable’ and the lending facility is generally arranged by a stockbroker. Not all brokers offer the short selling facility so please check with your stockbroker.

Stop: An order instruction to a broker where an order is placed at market only when the security trades at the specified ‘stop’ price. The specified ‘stop’ may be above or below the current market.

Stop Loss: An order instruction to a broker where an order is placed at market only when the security trades at the specified ‘stop loss’ price. Not all brokers will place stop loss orders. Placing both an order and a stop loss order is generally treated by stockbrokers as being two orders; this may impact on brokerage and other charges.

Support: In technical analysis, support occurs when a share on a downward trend has difficulty moving below a certain price level.