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Options and Futures

Out-of-the-Money Option

An option that holds no inherent value, meaning its strike price is higher than the current price of the futures contract or its strike price is lower than the current futures price. This type of option is known as "out of the money" and does not hold any profit potential at the current market conditions. It is important to understand the concept of intrinsic value when trading options, as it can greatly impact your investment decisions.

Commission Fee

A broker's fee, also known as a brokerage fee, is a charge applied for the execution of a transaction. This fee is typically paid to a broker for their services in facilitat...

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Gamma

Delta, also known as the option's hedge ratio, is a vital measure in finance that indicates the rate of change in an option's price in response to a unit change in the under...

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Nearby (Delivery) Month

The closest expiration month of a futures contract, also known as spot or front month. This term denotes the month in which the contract is set to expire. It is an important...

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Round-Turn (futures)

In finance, the offsetting of a long or short position can be achieved through various means such as entering into an opposite transaction or accepting/delivering the underl...

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