Halfway through a session a word comes up that you only half know. Net GEX. Premium. Mint and burn. Stopping to read an explainer costs minutes you do not have. A markets Super Intelligence can do something a glossary cannot. It can define the term and apply it to the reading in front of you in the same breath.
The shape of a good explanation
Three sentences cover it. The first defines the term in plain words. The second ties it to the current reading: here is that figure now, on this instrument, and here is its age. The third says what the term does not mean.
The third sentence is the one a static glossary leaves out. Most misreadings of a market term come from stretching it past what it measures.
Three examples in words
Take funding on a stock perp. The definition: a payment between longs and shorts, charged hourly, and positive means longs pay shorts. The annualized figure is the hourly rate multiplied out over a year, which is a unit conversion with no compounding. The limit: funding belongs to the perp. The share has no funding rate.
Take the premium. The definition: the gap between the perp’s mark price, which is what it trades at, and its oracle price, which is the reference it follows. The limit: a premium describes that perp on that book. It is covered in reading the premium on a stock perp.
Take mint and burn. The definition: tokens created and tokens redeemed, which together move a stock token’s supply. The limit: supply counts tokens on-chain. It is not a reading of the stock’s float. The basics are in mint and burn in plain terms.
How to ask
Say the term and say where you saw it. “What does net GEX mean on the SPY map I am looking at” gets a better answer than “what is GEX”. The first tells the SI which instrument to read. The second gets a definition with nothing attached.
If the answer runs long, say so. “In two sentences” is a fair instruction. Mid-session, the short version is the useful one. The longer treatment can wait for the evening, and dealer gamma in plain English is a good place to start.
When the term does not apply
Sometimes the right explanation is that the term has no meaning where you are pointing. Asking what the gamma flip is on a stock token is one such case. Perps and stock tokens have no dealer gamma, no flip and no walls. A markets SI should say that first and then name what that market does publish.
What the explanation is not
It is not a lesson in what to do. Knowing that price is below the flip, and knowing what that term means, still leaves the decision with you. A definition is a reading aid.
Dr. NoVo, NoVo’s Financial Markets Super Intelligence, takes these questions on his own page and inside the dashboards. For the vocabulary as a list, see the scalping glossary.