Binary Options
Banc De Binary Demo Binary Option is a type of option where the trader takes a yes or no position on the price of a financial asset, and the resulting payoff is all or nothing. […]
Put – Call Ratio
The Put-Call Ratio is the number of put options traded divided by the number of call options traded in a given period. While typically the trading volume is used to compute the Put-Call Ratio, it […]
Options contract
A contract that, in exchange for the option price, gives the option buyer the right, but not the obligation, to buy (or sell) a financial asset at the exercise price from (or to) the option […]
Embedded option
An option implicit in another instrument. The commonest are: call options embedded in bonds, which allow the issuer to redeem the bond early; the options implicit in bonds with sinking funds; the embedded put provisions […]
Derivative instruments
Contracts such as options and futures whose price is derived from the price of the underlying financial asset.
Condor
Applies to derivative products. Option strategy consisting of both puts and calls at different strike prices to capitalize on a narrow range of volatility. The payoff diagram takes the shape of a bird. See also […]
Bull Spread
An option strategy that achieves its maximum potential if the underlying security rises far enough, and has its maximum risk if the security falls far enough. An option with a lower striking price is bought […]
Bear Spread
An option strategy that delivers its maximum profit when the underlying stock declines and has its maximum risk if the stock rises in price. The strategy can be implemented with either puts or calls. In […]
Barrier options
Option contracts that remain dormant until a trigger point (the barrier price) is reached, at which point the call or put option is activated, and results either in a long or short options position, or […]
Binary Options
A binary option is an option that pays either a fixed amount or nothing, depending on whether a certain condition is fulfilled when the option expires. These types of options are different from plain vanilla […]
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