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What do we call a Plain Vanilla option?

ForexZig.com February 22, 2013 Comments Off

Definition Plain Vanilla This is the most basic or standard version of a financial instrument, generally options, bonds, futures and swaps. Plain vanilla is the opposite of an exotic instrument, which alters the components

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What do we call a Binary option?

ForexZig.com February 22, 2013 Comments Off

Definition and types A Binary option is a type of option where the payoff is either fixed amount of some asset or nothing at all. The two main types of binary options are the

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What do you know about the covered calls strategy?

ForexZig.com October 23, 2012 Comments Off

A basic rule in trading is to ensure a full protection of your capital. So the strategy of selling a call option should be applied only to securities that you already have – thus

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Put Option – Forex Economic Dictionary

ForexZig.com October 5, 2012 Comments Off

Put Option – this is an option that gives the right (but not the obligation) to sell currency or  other financial instrument at the exercise price, within a predetermined period or date. This term

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OTC Option – Forex Economic Dictionary

ForexZig.com October 5, 2012 Comments Off

OTC Option – this is an option that is traded freely, unlike those traded on the exchange markets. There is a direct connection between buyer and seller and no standard terms for prices, amounts

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Option Premium – Forex Economic Dictionary

ForexZig.com October 5, 2012 Comments Off

Option Premium – the price of the option buy, agreed between both parties and paid by the buyer with spot value

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Option – Forex Economic Dictionary

ForexZig.com October 5, 2012 Comments Off

Option – a contract that gives the right but not the obligation to buy (call option) or to sell (put option) a given amount of financial instrument, for a specified price, within a defined

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European Option – Forex Economic Dictionary

ForexZig.com October 2, 2012 Comments Off

European Option- this is an option that can be realized only at maturity. Sometimes, European options trade at a discount in comparison with those in USA. Investors in America have more opportunities to exercise

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Call Option- Forex Economic Dictionary

ForexZig.com October 1, 2012 Comments Off

Call Option – this is an option that gives the holder the right, but not the obligation, to buy the base instrument at a specified price, called strike price, on or before the defined

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American Option – Forex Economic Dictionary

ForexZig.com September 21, 2012 Comments Off

American Option – this is an option that can be used at any working day during the life of the option, this means before or on the date of payment. American options increase the value

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