A Accumulation – When stocks start moving sideways after a significant drop as investors start accumulating. Adjusted Options – Non-standardized stock options with customized terms in order to price in major changes in the underlying stock’s capital structure. Read the full tutorial on Adjusted Binary option brokers in the u. Order – An order that must be completely filled or else it will not be executed.
This is a useful order for option traders executing complex option strategies which needs to be precisely filled. Read The Tutorial On American Style Options. Arbitrage – The simultaneous purchase and sale of financial instruments in order to benefit from price discrepancies. Option traders frequently look for price discrepancies of the same option contract between different option exchanges, thereby benefiting from a risk free trade. Ask Price- As used in the phrase ‘bid and asked’ it is the price at which a potential seller is willing to sell. Another way of saying this is the asking price for what someone is selling. You buy option contracts and stocks on their Ask price.
The writer receives an assignment notice from the Options Clearing Corporation. At the Money – When an option’s strike price is the same as the prevailing stock price. Read More About At The Money Options. B Backspread – see Reverse Strategy. Barrier Options -Exotic options which comes into existence or goes out of existence when certain prices has been reached.
Read More About Barrier Options Here! Bearish – An opinion that expects a decline in price, either by the general market or by an underlying stock, or both. Bearish Options Strategies – Different ways to use options in order profit from a downwards move in the underlying stock. Read the tutorial on Bearish Options Strategies. Bear Spread – an option strategy that makes 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.