Put Option
A Put Option or Put is a derivatives contract that gives the buyer and holder of the contract the right, but not the obligation to sell an underlying stock, index, or future at a pre-set price at a pre-set time More...
Physical Delivery
Physical Delivery is a term used in options and futures trading in which the holder of a contract requests actual delivery of the underlying when the contract expires. For example, when trading Nickel futures, a More...
Perfect Hedge
A Perfect Hedge refers to a series of positions taken by a trader in which to sum of the positions equate to a combined Beta of 0.0. A Perfect Hedge can also be achieved in a trader’s book by each directional More...
Paper Trade
A Paper Trade refers to a method of practicing trading by using a brokerage firm’s demo account. Demo accounts or practice accounts are offered by trading brokerage firms with a balance of virtual money. The More...
Pairs Trade
A Pairs Trade refers to an equity trading strategy in which two stocks in the same sector are simultaneously bought and sold. The strategy is essentially an arbitrage strategy in which the trader or hedge fund goes More...
Options on Futures
Options on Futures are American Style options contracts that have their value based upon the value of an underlying Futures contract. Whereas an Equities Option gives the holder the right to buy or sell the underlying More...
Technical Trading with the Accumulation Distribution Indicator
One of the most famous technical indicators that you will encounter is the Accumulation/Distribution (A-D) that was designed by Larry Williams, who is also the inventor of numerous other famous analytical tools. More...
Overnight Forex Position
An Overnight Forex Position is a Forex trading strategy in which the trader enters into one or more trades at the beginning of the trading day, holds the position overnight, and exits the position early the next More...
Over Hedged
The term Over Hedged refers to when a trader has several trading positions on his book that he has corresponding hedging trades. While a perfect hedge on a trade will theoretically reduce all risk, it will do so More...
Outright Option
An Outright Option is an options trading strategy in which the trader buys or sells options contracts that are unhedged. An options trader will buy or sell call or put options without the simultaneously placing More...