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Related Terms

• Options

  An option is a financial contract that grants the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price.

• Binary Options

  A binary option is a type of options contract in which the payout will depend entirely on the outcome of a “Yes or No?” or “True or False” proposition. Don’t be intimidated! Its name may sound complicated, but binary options are arguably a simpler way to trade than traditional options or currencies. Just like traditional […]

• Delta

  Options delta (Δ) is a measure of the sensitivity of an option’s price to changes in the underlying asset’s price.

• Theta Decay

  Options time decay, also known as theta, refers to the gradual reduction in the value of an options contract as it approaches its expiration date.

• Delta Hedging

  Delta hedging is a risk management strategy used in options trading to reduce or eliminate the directional risk associated with price movements in the underlying asset