A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
M
The amount of buying power the broker is willing to provide to traders based on the deposited cash into the account.
The minimum equity a broker requires traders to maintain in order to support a position.
An order placed with a broker to execute a buy or sell a stock or option at the best available current market price.
A member of the exchange located on the floor of the exchange who buys and sells for his/her own account and is responsible for maintaining an orderly market. Another words this is the trader who influences and set market prices for various securities.
When a trader simultaneously buys a stock and a Put option with the same amount of shares purchased. Many investors use this strategy to insurance their stock purchase against a drop in price.
N
A short option that is not covered or collateralized by shares or a Long position in the event of assignment. See Cash Covered Put and Cash Covered Call.
An option strategy which benefits from a neutral or consolidating movement from the stock market.
O
This is the price at which a seller is offering to sell the security or the option. AKA ask price.
The total number of open volume of contracts remaining from the previous trading days for a given underlying security.
A contract that gives the buyer of the option the right, but not the obligation, to buy or sell a certain number of shares of an underlying security, for a specific price before expiration.
When a trader sells an option and takes on the obligation to perfrom in the event of exercise or assignment.
A stock on which a trader is able to trade options. Remember that options are derivatives of another security, stock, and not all stocks provide options which traders can trade.
OCC is the world's largest equity derivatives clearing organization. It guarantees that derivatives trade smoothly and that every trade bought or sold will have a buyer or seller. Without this clearance guarantee the derivatives world would not be able to function as it does today.
This refers to an option which does not have any intrinsic (actual) value. The option's premium reflects time value only. A Call option is considered OTM if the stock price is below its strike price. A Put option is OTM if the stock price is above its strike price.
A trader who entered into a Long Call or Put option and now has the right to exercise his option before expiration.
