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Knock-Out Forward

A forward contract which has a knock-out barrier, allowing the holder whereby to avoid unfavorable moves in spot price down...

Short Seagull Option

A three-pronged currency option combination that involves the simultaneous buying of an at-the-money call and selling of both an out-of-the-money...

Short Range Forward Contract

A variation of the range forward contract which involves taking two opposite option positions on the same underlying. For example,...

ATM

It stands for at the money; a situation whereby the strike price of an option is equal to (or almost...

At The Money

A situation whereby the strike price of an option is equal to (or almost equal to) the market price of...

At-The-Money Straddle

A straddle whose strike is equal to (or closest to) the price of its underlying asset. It is a combination...

At-The-Money Put

A put option whose strike price, at a given point in time before or at expiration, is equal to the...

Long an Option

The long position which is taken by the holder (buyer) of an option. In other words, the long side has...

Long Seagull Option

A three-pronged currency option combination that involves the simultaneous selling of an at-the-money put and buying of both an out-of-the-money...

Equity Forward

A forward contract which entails the purchase or sale of a specific amount of an equity instrument or a stock...