Z-SCOREA statistical measurement that quantifies the distance (measured in standard deviations) a data point is from the mean of a data set. In trading, Z-scores can be used to assess the risk or volatility of a financial instrument's price movements.
ZERO-COST COLLARA strategy used to hedge against potential losses in a financial asset's value without incurring any upfront costs. It involves purchasing a put option while simultaneously selling a call option, with the premiums from the call option covering the cost of the put option.
ZERO-SUM GAMEA situation in which one participant's gain is exactly balanced by another participant's loss. In trading, the market is often considered a zero-sum game because for every trade that results in a profit, there is an equal loss on the other side.
ZONE OF SUPPORT AND RESISTANCEPrice levels on a chart where an asset's price tends to encounter barriers to further movement, either upwards (resistance) or downwards (support). These zones are based on historical price data and are often used by traders to make decisions about buying or selling.
