Glossary

Key terms and concepts used across Trade Echo tools and the Edge education hub.

0

0DTE

Zero days to expiration — options contracts that expire on the same day they are traded. Popular for SPX and high-volatility intraday strategies.

AlgoEdge Channels

Nine advanced algorithmic trading channels inside Trade Echo's AlgoEdge module. Each channel uses distinct strategies including momentum, mean reversion, and trend following.

Anchor Point

A key price level identified by DealerEdge where dealer hedging activity concentrates. Price tends to gravitate toward Anchor Points due to market maker gamma exposure.

ATM (At The Money)

An option whose strike price is equal to or very close to the current market price of the underlying asset.

B

Block Trade

A large privately negotiated securities transaction that occurs outside normal market channels. Often signals institutional conviction about a directional move.

BT Cloud

Trade Echo's proprietary cloud-based trading indicator system that integrates signals from multiple data sources into a unified technical overlay.

Copy Trading

A self-directed feature allowing subscribers to follow traders, view activity and live positions where shown, and receive alerts on new trades. Optional brokerage connectivity can send order instructions you configure under the in-app Copy Trading Agreement. Trade Echo does not provide investment advice or custody assets.

Dark Pool

A private financial exchange where institutional investors trade large blocks of securities away from public exchanges. Dark pool prints can reveal institutional positioning.

Defense Line

Support and resistance levels derived from DealerEdge's gamma analysis. Defense Lines indicate where market maker hedging creates natural price barriers.

Delta

An options Greek measuring the rate of change of an option's price relative to a $1 move in the underlying. Delta also approximates the probability of expiring in-the-money.

Gamma

An options Greek measuring the rate of change of delta per $1 move in the underlying. High gamma means delta changes rapidly — critical for understanding dealer hedging behavior.

Gamma Exposure (GEX)

A measure of how market makers must buy or sell the underlying to hedge their options positions. Positive GEX stabilizes price; negative GEX amplifies moves.

Gamma Flip / Flip Level

The price at which aggregate dealer gamma exposure transitions from positive to negative (or vice versa). Above the flip level, dealers dampen volatility; below it, they amplify it.

GEX Rating

Trade Echo's proprietary 1–5 volatility-regime score derived from dealer gamma positioning — 4–5 signals positive gamma (stable, mean-reverting), 1–2 signals negative gamma (volatile); it does not indicate direction.

Golden Zone

A Fibonacci-based retracement zone (typically 0.5–0.618) used in BT Cloud strategies to identify high-probability entry areas during pullbacks.

Implied Volatility

The market's expectation of future price movement, derived from option prices. Higher IV means more expensive options and expected larger moves.

ITM (In The Money)

A call option with a strike price below the current market price, or a put option with a strike price above it. ITM options have intrinsic value.

N

Negative Gamma

When dealers are short gamma, they must buy as price rises and sell as price drops — amplifying moves in both directions. Creates volatile, trending conditions.

Open Interest

The total number of outstanding options contracts that have not been settled. Changes in open interest can signal new institutional positioning.

Opening Range Breakout

A strategy that trades the breakout from the first 15–30 minutes of the trading session. Combined with BT Cloud signals for confirmation.

Options Flow

Real-time tracking of options orders as they hit the tape. Unusual size, sweep orders, and block trades can reveal institutional sentiment before price moves.

OTM (Out of The Money)

A call option with a strike price above the current market price, or a put option with a strike price below it. OTM options consist entirely of time value.

P

Positive Gamma

When dealers are long gamma, they buy as price drops and sell as price rises — acting as a stabilizing force. Creates range-bound, mean-reverting conditions.

Premium

The price paid to buy an options contract. Determined by intrinsic value plus time value, and heavily influenced by implied volatility.

S

Smart Money

Institutional investors, hedge funds, and large traders whose positioning often precedes significant price moves. Trade Echo tools help identify smart money activity.

Sweep

An aggressive options order that simultaneously hits multiple exchanges to fill quickly. Sweeps often indicate urgency and strong directional conviction.

Theta

An options Greek measuring time decay — the rate at which an option loses value each day, all else equal. Theta accelerates as expiration approaches.

Vega

An options Greek measuring sensitivity to implied volatility. Vega tells you how much an option's price changes for a 1% change in IV.