Tag: underlying
Ladder Option
What is 'Ladder Option' An option that locks-in gains once the underlying reaches predetermined price levels or "rungs," guaranteeing some profit even...
ETF – Exchange Traded Funds
What is an ETF and how does it work
ETFs are exchange traded funds. ETFs are a type of investment fund that hold a basket...
Economic Derivative
What is an 'Economic Derivative' An economic derivative is a relatively new form of derivative contract (the first ones were traded in...
S&P 500 Mini
What is the 'S&P 500 Mini' The S&P 500 mini is a derivative contract representing a designated fraction of the trading value...
AAAA Spot Contract
What is 'AAAA Spot Contract' A standardized contract drawn up by the American Association of Advertising Agencies that governs the purchase of...
OTC
Over-the-counter (OTC) refers to the process of how securities are traded for companies not listed on a formal exchange. Securities that are traded...
Naked Option
What is a naked option
When most people think of options trading, they picture someone buying or selling a call or put option on an...
Obligation
What is an 'Obligation' An obligation in finance is the responsibility to meet the terms of a contract. If an obligation is...