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In this section basic definitions is listed:
Amount: Price x Quantity x Multiplier
Amount in base: The amount in the base currency. Amount * Conversion rate = Amount in base
Average price: Average open price. This is a Quantity weighted average for price.
Average close price: Average close price. This is a Quantity weighted average for price.
Base currency: The accounting currency
Cash transaction:The Cash Transaction list is to store such elements which are not directly connected to the core of the trading. For example deposits and withdrawals, dividends, payment in lieu of dividends, interest received and paid and other fees such as real time data fee etc.
Closed position: Position which is already closed.
Commission: Commission paid to the brokerage.
Commission in base: Commission in the base currency. Commission x Conversion Rate on the End Date.
Conversion or exchange rate: The price of one country's currency expressed in another country's currency. This is used in the TradingDiary Pro when the product currency differs from the base currency.
Drawdown: A drawdown is usually quoted as the percentage between the peak and the trough. A drawdown is measured from the time a retrenchment begins to a time when a new high is reached. This method is used because a valley can't be measured until a new high occurs. Once the new high is reached, the percentage change from the old high to the smallest trough is recorded. Investopedia
Expiration date: In derivatives markets, the expiration date is the date that a security with a finite life, such as a futures or option contract, expires. With a futures contract, either cash settlement or physical delivery occurs after the expiration date. With an options contract, if the option is not exercised by the end of the day on the expiration date, the option expires worthless.
Expectation $ is the (% wins * Avg Win) – (% Losses * avg Loss)
Expectation % is the Percent wins * (Payoff ratio) – (% losers)
Hidden trade: Hidden trades are those trades which are not sorted into positions.
Initial Stop: The first stop by date.
Initial Risk: Initial risk for the position. Calculation: (Entry Price - Initial Stop Price) * Quantity * Multiplier
Initial Risk %: Initial Risk / Total Equity in percentage.
Leverage: Leverage can be created through options, futures, margin and other financial instruments. For example, you have $1,000 to invest. This amount could be invested in 30 shares of Microsoft stock, but to increase leverage, you could invest the $1,000 in three single stock futures contracts. You would then control 300 shares instead of just 30. This means 10x leverage or 1000%. In the TradingDiary Pro the leverage is calculated for every day from the sum of the closing Amount (absolute value) of the open positions divided by the Total Equity.
Multiplier: Futures, option, warrants are traded with a multiplier that adds leverage to the trade and inflates the overall value. This multiplier provides greater opportunity to profit, but also increases the overall risk for the participants
Net P&L: P&L + Commission + Offsets (Interest, Dividend etc.)
Net P&L in base: Net P&L in the base currency. Net P&L x Conversion Rate on the End Date of the position.
Offset: such modifier which changes the P&L of the position indirectly.
Offset in base: Offset in the base currency. Offset x Conversion Rate.
Open position: Position that is not yet closed
Option type: A call option gives the buyer the right to buy the underlying asset and a put option gives the buyer of the option the right to sell the underlying asset.
Payoff ratio is the absolute (Avg winning Trade / Avg losing trade)
Position is the coherent trades for the same instrument. If the first trade is buy it called long position and if the first trade is a sell it called short position.
Price: The price that an investor pays for a security. This price is important as it is the main component in calculating the returns achieved by the investor. Essentially, it can be thought of as the price that is paid for anything that is bought. Investopedia
Price in base: Price in the base currency. Price x Conversion rate at the trade date.
Profit and Loss (P&L): The profit or loss.
Profit and Loss(P&L) in base: P & L in base currency. S
Profit factor is the ratio in percentage between the sum of all the win trades (Gross profit) and the sum of all the loss trades (Gross loss).Profit
Risk: Actual or current risk. Calculation: (Last Price - Actual Stop Price) * Quantity * Multiplier
Risk %: Risk / Total equity in percentage
R/R or Risk/Reward is a theoretical value.A ratio used by many investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns. This ratio is calculated mathematically by dividing the amount of profit the trader expects to have made when the position is closed (i.e. the reward) by the amount he or she stands to lose if price moves in the unexpected direction (i.e. the risk). Investopedia
R Multiple of a position is the gain divided by the amount risked.
Strike: The fixed price at which the owner of an option can purchase, in the case of a call, or sell, in the case of a put, the underlying security or commodity. It's the price at which the stock will be bought or sold when the option is exercised. The strike price is often called the exercise price.
Tags: Tags are specific flags which you can add to the trades. Tags are used to identify strategies which you follow during trading.
Total equity: Is a value which computed once a day based on the closing market prices of all instruments. Simply is the total capital value at the end of the day.
Trade: A transaction between the seller and the buyer for the exchange of goods
Value added monthly index - VAMI: A method of tracking the return on an investment or portfolio over a given period of time to a theoretical $1000 investment.