Albatross Spread
This is an advanced strategy that can be used to profit from an underlying security remaining neutral. Learn how to use an Albatross Spread.
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REFERENCE · 288 TERMS · UPDATED WEEKLYREFERENCE · 288 TERMS
The glossary.
Every options term we use, in plain English. Cross-linked to the lessons and strategies that put it in context. The page you’ll come back to.Every options term we use, in plain English.
A
11 TERMS
All Or None Order
Often abbreviated as AON, this is a type of order that must be either filled entirely or not at all.
American Style Option
A contract that gives the holder the flexibility of choosing to exercise their option at any point between buying the contract and the contract expiring. More on American Style.
Approval Levels
See Trading Levels.
Arbitrage
Taking advantage of price discrepancies by buying and selling to create a risk free trade.
Arbitrage Trading Strategies
Strategies that involve the use of arbitrage. Read more at Arbitrage Strategies.
Ask Price
The price it costs to buy an option.
Assignment
When the writer of a contract is required to fulfill their obligations under the terms of that contract – for example buying the underlying security if they have written calls or selling the underlying security if they have written puts. The writer will be issued with an assignment notice in such circumstances.
At the Money Option
An option where the price of the underlying security is the same as the strike price.
Auto Trading
A trading method that involves using a third party to select your trades and having your broker automatically execute them. Read more on Auto Trading.
Automatic Exercise
The process by which in the money options are automatically exercised if they are in the money at the point of expiration.
A
11 TERMS
Albatross Spread
This is an advanced strategy that can be used to profit from an underlying security remaining neutral. Learn how to use an Albatross Spread.
All Or None Order
Often abbreviated as AON, this is a type of order that must be either filled entirely or not at all.
American Style Option
A contract that gives the holder the flexibility of choosing to exercise their option at any point between buying the contract and the contract expiring. More on American Style.
Approval Levels
See Trading Levels.
Arbitrage
Taking advantage of price discrepancies by buying and selling to create a risk free trade.
Arbitrage Trading Strategies
Strategies that involve the use of arbitrage. Read more at Arbitrage Strategies.
Ask Price
The price it costs to buy an option.
Assignment
When the writer of a contract is required to fulfill their obligations under the terms of that contract – for example buying the underlying security if they have written calls or selling the underlying security if they have written puts. The writer will be issued with an assignment notice in such circumstances.
At the Money Option
An option where the price of the underlying security is the same as the strike price.
Auto Trading
A trading method that involves using a third party to select your trades and having your broker automatically execute them. Read more on Auto Trading.
Automatic Exercise
The process by which in the money options are automatically exercised if they are in the money at the point of expiration.
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