Stock Market Glossary (2026): 41 Terms Every Indian Investor Should Know

Using computer programs that follow predefined rules to place, modify or cancel orders automatically.

A yearly fee your depository participant charges for maintaining your demat account.

Intraday order types that attach a compulsory stop-loss (cover order) or both stop-loss and target (bracket order).

The fee a stock broker charges you for executing a buy or sell order on your behalf.

A low-cost demat account type for small investors, with reduced charges below a SEBI-defined holding value.

The maximum percentage a stock or index can rise or fall in a day before trading is restricted or halted.

A legal document your broker sends after each trading day listing every trade, its price and all charges.

Buying shares and holding them in your demat account beyond the trading day, for days, months or years.

An electronic account that holds your shares, ETFs, bonds and other securities in dematerialised form.

A broker that offers low-cost, mostly online trading with little or no personal advice or research.

Fees charged by the depository and your depository participant when securities are debited from your demat account.

A fund that holds a basket of assets, such as an index's stocks or gold, and trades on the exchange like a share.

Fees charged by stock exchanges like NSE and BSE on the value of trades executed on their platform.

The date on which a futures or options contract ends and is settled according to exchange rules.

The derivatives segment where traders buy and sell futures and options contracts based on stocks or indices.

A broker that combines trade execution with research, advisory support, relationship managers and often branch access.

A contract to buy or sell an asset at a fixed price on a future date, traded in standard lot sizes.

Goods and Services Tax applied to brokerage and certain other trading charges, but not to STT or stamp duty.

A standing instruction that places an order automatically when the price reaches your trigger, valid for an extended period.

Buying and selling the same security within one trading day, so no shares are delivered to your demat account.

Applying for a new share issue, where your money is blocked in your bank account via ASBA or a UPI mandate until allotment.

An order to buy or sell only at a specified price or better, giving you control over the execution price.

The fixed number of units of the underlying asset in one futures or options contract, set by the exchange.

The money or collateral you must keep with your broker to take and hold leveraged positions.

An order to buy or sell immediately at the best price currently available in the market.

A broker-funded facility that lets you buy shares for delivery by paying only part of the cost upfront.

A table showing all available call and put options for an underlying, with prices, volume and open interest by strike.

The price an option buyer pays to the seller for the rights the option contract provides.

A contract giving the buyer the right, but not the obligation, to buy or sell an asset at a set price before expiry.

The time delay between placing an order and it being received, executed and confirmed by the exchange.

A rule requiring traders to hold sufficient margin at random intraday snapshots, not just at the end of the day.

Using shares or other securities in your demat account as collateral to get margin for trading.

A very small regulatory fee charged on trade turnover to fund the market regulator, SEBI.

The difference between the price you expected for a trade and the price at which it actually executed.

A statutory charge levied on the buy side of securities transactions, collected through your broker.

An order that triggers a buy or sell once the price reaches a set level, used to limit losses on a position.

The fixed price at which an option holder can buy (call) or sell (put) the underlying asset.

A tax collected by the government on the value of securities you buy or sell on a recognised stock exchange.

A settlement cycle where trades are completed, with shares and money exchanged, one working day after the trade date.

The account with your broker that lets you place buy and sell orders on the stock exchange.

A programmatic interface from your broker that lets software place orders and fetch market and account data.