Trading options terminology in economics


For the employee trading options terminology in economics, see Employee stock option. The strike price may be set by reference to the spot price (market price) of the underlying security or commodity on the day optlons option is taken out, or it may be fixed at a discount or at a premium. Traders use options to speculate, which is a relatively risky practice, while hedgers use options to reduce the risk of holding an asset.

A ACCOUNT EQUITYThe net worth of a commodity account as determined by combining the ledger balance with any unrealized gain termionlogy loss in open positions as marked to the market. ACTIVE MONTHIn the metals markets, the nearest base contract month that is not the current delivery month. The base months for each metals futures are defined by each individual contract. For other contracts this may designate the closest monThe company aims to break into the top five positions in the smartphone market t.

Apple to sell special edition of iPhone 7 in India from April Kodak Alaris to focus on information management services To compete with Jio, BSNL launches plan to provide 2GB data per day at Rs 339. Definition: Butterfly Spread Option, also called butterfly option, is a neutral option strategy that has limited risk. The option strategy involves a combination of various bull spreads and bear spreads.

A holder combines four option contracts having the same expiry date at three strike price points, which can tetminology a pe.




Trading options terminology in economics

Trading options terminology in economics