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Handle
One full point move in the market
Handy and Harman Silver Quotation
A dealer in precious metals with a very large requirement for silver. Their quotation is the average price for which they can purchase silver in order to meet their need for that day. Photographic film manufacturers are heavy users of silver as are silversmiths and jewelers.
Harami
In candlestick terminology, a small real body contained within a relatively long real body.
Hard Currency
Currency that is sought after as a stable standard of exchange and security. The major hard currencies are the U.S. dollar, Deutschemark, Swiss franc and the Japanese yen.
Haurlan Index
This indicator is calculated daily from the plurality of NYSE advances over declines. There are three components of the Haurlan index: Short-term, Long-term and Intermediate-term.
Head and Shoulders
On a technical analyst's trading chart, a pattern that has three peaks resembling a head and two shoulders. The stock price moves up to its first peak (the left shoulder), drops back, then moves to a higher peak (the top of the head), drops again but recovers to another, lower peak (the right shoulder). A head and shoulders top typically forms after a substantial rise and indicates a market reversal. A head and shoulders bottom (an inverted head and shoulders) indicates a market advance. Technical analysts generally consider a head and shoulders formation to be a very bearish indication.
Hedge
To create a trade which lowers the risk of an outright directional move (i.e., to go long one security, short another security). An investment made in order to reduce the risk of adverse price movements in a security. The intention is to reduce the risk of a loss from a specified event; e.g., hedging a currency to protect against detrimental currency movements that would reduce the portfolio return. Thus, you can reduce the risk of loss by taking a position through options or futures opposite to the current position they hold in the market.
Hedger
A trader who enters the market with the intent to protect a position in the underlying. An investor who uses futures market to minimize the risk in his or her business. Hedgers may be manufacturers, portfolio managers, bankers, farmers, etc.
Hedging
A strategy designed to reduce investment risk using "call" options, "put" options, "short" selling, or futures contracts. A hedge can help lock in existing profits. Its purpose is to reduce the potential volatility of a portfolio, by reducing the risk of loss.
Helsinki Stock Exchange
The smallest of the Nordic exchanges
Herrick Payoff Index
This is a commodity trading tool, useful for the early spotting of changes in price trend direction. The Payoff Index is best used to distinguish trends that are destined to continue from those that will most likely be short-lived. The Payoff Index is a commodity trading tool that is useful in the early identification of changes in the direction of price trends. The Payoff Index frequently helps distinguish between a rally in a trend that is destined to continue and a significant trend change that will provide a worthwhile trading opportunity.
Heuristic Method
Problem solving approached by trying out several different methods and comparing which provides the best solution.
Heuristics (Computer Science)
Computational rules of thumb. Distinct from algorithms, which are programs guaranteed to generate the correct result under all circumstances, heuristics may only turn out to be correct a certain percentage of time.
Hidden Node
Elements that give a neural network the ability to learn nonlinear patterns. The hidden nodes mathematically transform inputs by passing weighted sums of those inputs through nonlinear functions.
Hierarchical Neural Network
In artificial intelligence, a neural network in which predictions derived from networks at one level of the hierarchy are incorporated as inputs at another level. This architecture lends itself to faster training, as each network focuses learning solely on its own output.
High (hi)
The highest price that was paid for a stock during a certain period. For example, the high for the day was $80, but the high for the year was $120.
High and Low
Refers to the high and low transactions prices that occur each trading day.
High-grade Bond
A bond that has been rated double-A or triple-A by Standard & Poor's, Dominion Bond Rating, or Moody's rating services.
High Pass Frequency Filter
A detrending filter that lets pass the high frequency noise and rejects low frequency trend. Implemented by first applying a low pass filter to the data, and then subtracting the filtered data from the original data.
High Price
The highest (intraday) price of a stock over the past 52 weeks, adjusted for any stock splits.
High-Ticking
To pay the offered price.
Highly Confident Letter
A letter from an investment bank that is 'highly confident' of the ability to arrange financing for a securities deal. A highly confident letter may be used to finance a multibillion-dollar takeover or a leveraged buyout. Though the investment banker is 'highly confident' financing can be arranged, a highly confident letter is not an ironclad guarantee of financing.
Hijacking
A term used by the Japanese for takeover.
Hines Ratio
A modified put/call ratio that refines traditional option ratio analysis by including the open interest figures in the equation and can be defined as (Total put volume/Total put open interest) divided by (Total call volume/Total call open interest)
Historical Data
A series of past daily, weekly or monthly market prices (open, high, low, close, volume, open interest).
Historical Volatility
Calculated by using the standard deviation of underlying asset price changes from close to close trading going back 21 to 23 days. A measurement of how much contract price has fluctuated over a period of time in the past; usually calculated by taking a standard deviation of price changes over a time period.
Holder
One who purchases an option.
Holding Company
A company that holds controlling interests through majority shareholdings in other companies. Often, the holding company itself does not carry on any active business. A corporation that owns enough voting stock in another firm can control management and operations by influencing or electing its board of directors.
Hook Day
A trading day in which the open is above/below the previous day's high/low and the close is below/above the previous day's close with narrow range.
Horizontal Spread
Purchasing either a call or put options and simultaneously selling the same type of option with the same strike price but a different expiration month.
Hurdle Rate
The minimum acceptable rate of return on an investment (also called cut-off rate). Typically equals the cost of capital incurred in financing the project.
Hyperinflation
A term used to describe a rise in the price of goods and/or services of 100% or more in one year.
Hypothecate
To pledge securities as collateral for a loan.
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