A common option cycle which constitutes a series of option contracts that have the same terms and features and expire…
The trader who takes a short position in futures, i.e., he/she will sell the underlying commodity of a futures contract,…
The trader who takes a long position in futures, i.e., he/she will buy the underlying commodity of a futures contract,…
An option that gives its holder the right, without the obligation, to enter into a forward swap at a given maturity/expiration…
A limit on speculative positions in options on futures contracts. The futures-equivalent of an option position is the number of…
It stands for “forward implied volatility“. The future levels of volatility calculated taking into account current market prices of options.…
An option contract that has an earlier expiration date than a contract that is presently being devised or considered. For…
A financial instrument that contains an unconditional promise by one party to enter into a foreign exchange transaction with another…
An option contract that has a later expiration date than a contract that is presently being devised or considered. For…
The purchase of one option and the sale of a different-type option with a different strike price. In other words,…