Plain Vanilla option

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…

ForexZig - Professional forex trading
Binary Options

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…

ForexZig - Professional forex trading
covered calls

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…

ForexZig - Professional forex trading

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…

ForexZig - Professional forex trading

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…

ForexZig - Professional forex trading

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

ForexZig - Professional forex trading

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…

ForexZig - Professional forex trading

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…

ForexZig - Professional forex trading

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…

ForexZig - Professional forex trading

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…

ForexZig - Professional forex trading