K — Trading Terms Starting With K
Explore trading terms beginning with K, with clear definitions covering market structure, execution, risk, instruments, analysis, psychology, and performance concepts used by traders.
Trading terms beginning with K
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Keltner Channel
Keltner Channels are volatility bands placed around a moving average, commonly using Average True Range. Traders use them to study trend strength, breakouts, pullbacks, and overextended movement.
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A key level is an important price area where the market has previously reacted. It may act as support, resistance, a breakout point, or an entry and exit reference.
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A key reversal is a price pattern where an asset makes a new high or low and then closes strongly in the opposite direction. It may signal a possible change in trend when supported by context and confirmation.
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A knock-in option becomes active only if the underlying asset reaches a predefined barrier price. Before the barrier is touched, the option does not have its full contractual effect.
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A knock-out option becomes invalid if the underlying asset reaches a specified barrier. It may be cheaper than a standard option because the contract can terminate early.
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A Kagi chart changes direction only when price moves by a predefined amount. It focuses on meaningful price movement rather than fixed time intervals and can help visualize trend changes.
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The Kelly Criterion is a mathematical formula used to estimate an optimal position size based on win probability and payoff. Full Kelly sizing can create large volatility, so traders often use a smaller fraction.
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A kicker pattern is a strong two-candle reversal formation where price sharply changes direction with little overlap. It may indicate a sudden and significant shift in market sentiment.
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Know Your Customer, or KYC, is the identity-verification process used by brokers and financial institutions to confirm customer details and meet regulatory obligations.
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