Finelo Blog

Learn investing and trading, one article at a time. Practical guides, beginner-friendly explainers, and learning tips from the Finelo team.

Trading

What Is Portfolio Margin: Learn the Concept & Risk Controls

Portfolio margin is a risk-based method that applies scenario analysis to eligible positions in an approved margin account.

Finelo Team
Trading

What Is NQ in Trading: Learn the Concept & Risk Controls

In trading, NQ is the ticker symbol for the E-mini Nasdaq-100 futures contract, listed on CME Group's exchange.

Finelo Team
Investing

What Is Backtesting: Definition, Examples & Key Limits

Backtesting means taking a trading strategy's exact rules, when to enter, when to exit, how much to risk, and applying them to historical market data to see how the strategy would have performed.

Finelo Team
Trading

Volatility Smile in Options: Learn the Concept, Uses & Risks

A volatility smile is the pattern where implied volatility (IV) plotted against strike price forms a U-shape: options deep in- and out-of-the-money show higher IV than at-the-money contracts.

Finelo Team
Trading

Uptick Rule: The 10% Trigger Under SEC Rule 201

The original U.S. uptick rule no longer applies. The current framework is SEC Rule 201, often called the alternative uptick rule.

Finelo Team
Trading

Types of Market Data: Overview

Learn how real-time, historical, reference, and alternative market data differ, what each dataset can show, and which limitations to check before using it for trading research.

Finelo Team
Trading

Trading Order Types Cheat Sheet: Use Cases, Benefits, and Next Steps

This page quickly explains the common order types, when to pick each one, a compact comparison table, practical examples that show outcomes, and simple decision rules you can apply next.

Finelo Team
Trading

Trade-Through Violation: How Regulation NMS Rule 611 Works

A trade-through occurs when an execution is made at a price inferior to a protected quotation displayed by another trading center, unless an exception applies.

Finelo Team
Investing

Theta Decay Curve: Impacts on Options Trading

Theta (time decay) measures how an option’s price falls as time passes; the theta decay curve shows that loss is not steady — options typically lose extrinsic (time) value slowly early, then faster as expiration approaches, and this behavior guides whether you buy, sell, or hedge options Charles Schwab.

Finelo Team
Investing

Sustainable Growth Rate Formula: Definition, Calculation, and Applications

The sustainable growth rate (SGR) is a simplified steady-state estimate of growth that may be supported while a company retains a constant share of earnings and maintains key financial relationships.

Finelo Team
Chart Analysis

SMT Divergence Trading: Learn the Concept & Risk Controls

In trading, SMT stands for Smart Money Technique, and it is almost always discussed as SMT divergence. It is a concept from the ICT (Inner Circle Trader) framework that describes one specific moment: two markets that normally move together stop confirming each other.

Finelo Team
Trading

Round Lot vs. Odd Lot: Current U.S. Stock-Market Definitions

A round lot is the standard trading unit assigned to an NMS stock. An odd lot is an order for fewer shares than that stock’s round-lot size.

Finelo Team