1. Home
  2. Glossary
  3. Alpha

Basics

Alpha

Excess return above a benchmark

Updated Glossary

ApexVol Terminal

Options analytics, live.

Chains, IV rank, expected move and dealer positioning for 5,500+ US stocks and ETFs.

Start 7-day free trial Open the Terminal

Free on AAPL, no account. Trial: no charge if you cancel before it ends.

On this page
  1. Complete definition
  2. Keep reading

What is Alpha?

Alpha The excess return of an investment relative to a benchmark index. In options trading, alpha represents the edge or outperformance generated by a strategy beyond what market exposure alone would provide. Positive alpha indicates the strategy adds value beyond passive investing.

Complete definition

The excess return of an investment relative to a benchmark index. In options trading, alpha represents the edge or outperformance generated by a strategy beyond what market exposure alone would provide. Positive alpha indicates the strategy adds value beyond passive investing.

ApexVol Terminal

Options analytics, live.

Chains, IV rank, expected move and dealer positioning for 5,500+ US stocks and ETFs.

  • Live chains and Greeks
  • IV rank and percentile
  • Expected move and GEX
  • Screener and strategy P&L
Start 7-day free trial Open the Terminal

Free on AAPL, no account. Trial: no charge if you cancel before it ends.

Try this with real market data. 5,500+ stocks, live options chains, IV analytics and P&L. 7-day free trial.

Know the term.
Now see it priced.

Every definition here is something the Terminal shows you live on a real chain — the Greeks, the surface, the flow. Run it on AAPL without an account.

Real market data, not a sandbox. See it live on AAPL.