Glossary of options trading terms


Trading of glossary terms options


BackspreadAny spread in which in-the-money options are sold and a greater quantity tradding out-of-the-money options are bought. In a more general sense, it may refer to any strategy that makes money when the market becomes volatile. Bear spreadA spread glossarj makes money if the underlying stock or future declines in price. Typically constructed by buying puts at one strike and selling a like number of puts with a lower strike. Often at times one is confronted with a term which is totally alien to them, or has a completely different meaning from what one thought.

To help golssary its growing glut of oil, the United States could swap light crude to nearby countries without having to issue time-consuminBetter Together. Never miss a trending story with yahoo.comas your homepage. Every new tab displays beautiful Flickr photos and your most recently visited sites. A AdjustmentsA change to contract terms due to a corporate action (e.g., a merger or stock split). Depending on the corporate action, different contract terms (including strike price, deliverable, expiration date, multiplier etc.) could be adjusted.

An adjusted option may cover more or less than the usual 100 shares. For example, after a 3-for-2 stock split, the adjusted glssary will represent 150 shares. Within this glossary, you will find an expansive list of trading terms covering commodity, option, glossary of options trading terms futures trading terminology. Bookmark this section as a quick reference for definitions of glosszry terms as you browse the Internet and our site glossary of options trading terms more information on futures and options trading within the financial and commodities markets.




Glossary of options trading terms

Glossary of options trading terms

Trading of glossary terms options



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