Trading Resources

Glossary of Terms

Understand basic financial and trading definitions and terms.

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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

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There are currently no glossary items for this letter


A

Adjustments
Adverse market movements
All-or-none order (AON)
American-style option
Arbitrage
Ask / Ask price
Assigned (an exercise)
Assignment
At-the-money / At-the-money option
Averaging down

B

Backspread
Backup withholding
BATS
Bear (or bearish) spread
Bear spread (call)
Bear spread (put)
Bearish
Beta
Bid / Bid Price
Black-Scholes formula
BOX
Box spread
Break-even point(s)
Broker
Brokerage firm
Bull (or bullish) spread
Bull spread (call)
Bull spread (put)
Bullish
Butterfly spread
Buy-write

C

C2
Calendar spread
Call option
Carry / Carrying cost
Cash management
Cash settlement amount
CBOE
Class of options
Close / Closing transaction
Closing price
Collar
Collateral
Combination
Common stock
Condor spread
Contingency order
Contract size
Conversion
Cover
Covered call / Covered call writing
Covered combination
Covered option
Covered put / Covered cash-secured put
Covered straddle
Credit
Credit spread
Curvature
Cycle

D

Day order
Day trade
Day Trade Buying Power
Debit
Debit spread
Decay
Delivery
Delta
Derivative / Derivative security
Diagonal spread
Discount
Discretion
Display

E

Early exercise
EDGX
Electronic trading platform
Equity
Equity option
Equivalent strategy
European-style option
Ex-date / Ex-dividend date
Exchange traded funds (ETFs)
Exercise
Exercise by exception processing
Exercise price
Exercise settlement amount
Expiration cycle
Expiration date
Expiration Friday
Expiration month

F

Fence
Fill-or-kill order (FOK)
Financial Instrument
Financial securities
FINRA (Financial Industry Regulatory Authority)
Fixed income
Floor broker
Floor trader
Fundamental analysis
Fungibility
Futures contract

G

Gamma
GEM
Good-'til-cancelled (GTC) order

H

Hedge / Hedged position
Historic volatility
Holder
Horizontal spread
Hotkeys

I

Immediate-or-cancel order (IOC)
Implied volatility
In-the-money / In-the-money option
Index
Index option
Individual volatility
Institution
Intrinsic value
Iron butterfly
ISE
ISE Gemini

J

There are currently no glossary items for this letter


K

Kappa

L

Lambda
Last trading day
LEAPS® (Long-term Equity AnticiPation Securities) / Long-dated options
Leg
Level II options quotes
Leverage
Limit order
Liquidity / Liquid market
Listed option
Long option position
Long stock position

M

Maintenance Excess
Maintenance Requirement
Margin / Margin requirement
Mark-to-market
Market order
Market quote
Market maker
Market maker system (competing)
Market-not-held order
Market-on-close order (MOC)
Mark to Market
Married put strategy
MIAX
Model
Multiple-listed / multiple-traded option
Mutual fund

N

Naked or uncovered option
NASDAQ
Net credit
Net debit
Neutral
Neutral strategy
Ninety-ten (90/10) strategy
NOBO
NOM
Non-equity option
Not-held order
NYSE
NYSE Amex
NYSE Arca

O

Offer / Offer price
One-cancels-other order (OCO)
Open interest
Open outcry
Opening transaction
Option
Option period
Option pricing curve
Option pricing model
Option writer
Optionable stock
Options Clearing Corporation (OCC)
Order routing
OTC option
Out-of-the-money / Out-of-the-money option
Overnight Buying Power
Over-the-counter / Over-the-counter market
Overwrite
Owner

P

Parity
Payoff diagram
PHLX
Physical delivery option
Pin risk
Portfolio Margin Excess
Position
Position trading
Preferred stock
Premium
Primary market
Profit/loss graph
Put option

Q

There are currently no glossary items for this letter


R

Ratio spread
Ratio write
Realized gains and losses
Resistance
Reversal / Reverse conversion
Rho
Rolling

S

Sales
Securities and Exchange Commission (SEC )
Secondary market
Sector index
Secured put / Cash-secured put
Series of options
Settlement
Settlement Date
Settlement price
Short option position
Short stock position
Specialist / Specialist group / Specialist system
Special Memorandum Account (SMA)
Spin-off
Spread / Spread order
Standard deviation
Standardization
Stock dividend
Stock quotes
Stock split
Stop order
Stop-limit order
Straddle
Strike / Strike price
Suitability
Support
Synthetic long call
Synthetic long put
Synthetic long stock
Synthetic position
Synthetic short call
Synthetic short put
Synthetic short stock

T

Technical analysis
Theoretical option pricing model
Theoretical value
Theta
Tick
Time decay
Time spread
Time value
Total Equity
Trader
Trade Date
Trading pit
Transaction costs
Type of options

U

Uncovered call option writing
Uncovered put option writing
Underlying security

V

Vega
Vertical spread
Volatility

W

Wash Sale
Write / Writer

X

XYZ / XYZ Corporation

Y

There are currently no glossary items for this letter


Z

There are currently no glossary items for this letter


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