RATIO VERTICAL SPREAD
An option spread that creates profit from volatile circumstances. A small amount of closertothemoney options are bought than fartherfromthemoney options. Refer to backspread.
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An option spread that creates profit from volatile circumstances. A small amount of closertothemoney options are bought than fartherfromthemoney options. Refer to backspread.
When a loan is rewritten to prevent foreclosure. This can be an extension, lowered interest, or a change in repayment schedule. AKA rescheduling or soft loan.
The adjustment of insurance premium rates based on the losses incurred over the current year.
When a firm reduces its outstanding shares in an attempt to increase their value. They offer half the amount of shares at twice the price per share making the stock appear more
Loss control, loss financing, and risk reduction methods used to manage risks.
The closing of an option to obtain a longer maturity term. Refer to roll down and roll up.
A New York Stock Exchange membership that enables an agent to trade on the floor on their won behalf or for a client. This membership is transferable.
The collection of payments, particularly mortgage payments, by a trustee or servicing agent from a financial institution.
Maturity dates of less than three years on a yield curve. Refer to belly of the curve and long end.
Capital stock with less than 1 billion market capitalization. Refer to ankle biter large cap stock micro stock and mid cap stock.
When the difference between two assets and a strike price are used to pay off debt or loss. AKA difference, outperformance, and underperformance options. Refer to multi index option and yield curve
A calculation of premiums less expenses and losses to determine profitability of a company.
A firm expecting underlying assets when an exchangetrade derivative contract expires. Refer to weak hands.
When a syndicate arrange the obligations of a loan between its members. There are primary and secondary offerings.
The closeout price of a derivative. It is used to calculate profit spread. AKA unwind price.
The value of a derivative contract at single price increment.
When a transaction on the foreign exchange or money market that is processed the next day. AKA dealing over tomorrow and rollover.
An event that sends up a warning to an investor to buy or sell.
An option that can be paid off if the reference asset underperforms against a strike price. Refer to outperformance spread and spread option.
Trades done between brokers that do not enter the exchange. The prices must be fair. Refer to crossed trade.