Tag: derivatives

What is 'Vega' Vega is the measurement of an option's sensitivity to changes in the volatility of the underlying asset. Vega represents...

How to Calculate Variation and Maintenance Margin In futures trading, you must provide variation margin to your broker if you want to continue trading. If...

What is 'Gamma Pricing Model' An equation for determining the fair market value of a European-style option when the price movement on...

What is 'Gamma Neutral' A method of managing risk in options trading by establishing an asset portfolio whose delta rate of change...

Futures are a type of financial contract whereby an investor is obliged to buy an asset at a specified future price and date. The...

DefinitionIn economics, a commodity is an economic good or service that has full or substantial fungibility: that is, the market treats instances of the...

What is an underlying option security An underlying option security is a security that can be used as collateral for options contracts. The most common...

What is an 'Underlying Asset' An underlying asset is the security or commodity underlying a Derivative. The most common type of derivative is a futures...

What does 'Underlying' mean Underlying, in equities, is the common stock that must be delivered when a warrant is exercised, or when a convertible bond...

DefinitionA mortgage loan or, simply, mortgage is used either by purchasers of real property to raise funds to buy real estate, or alternatively by...