Tag Archives : expiration

Forex Trading: Different Ways

Forex Trading: Different Ways

Forex trading is an ever changing market where different forex traders come up with different ways of trading. The most popular and common ways of forex trading includes forex options, fore futures, exchange-traded funds, spot market etc.

Binary Options: Exchange-Traded Binary Options

Binary Options: Exchange-Traded Binary Options

Binary option contracts have long been available Over-the-counter (OTC), i.e. they are directly sold directly by the issuer to the buyer. In the past they were generally considered “exotic” instruments and for trading these instruments…

Barrier Option: Introduction to Barrier Option

Barrier Option: Introduction to Barrier Option

In finance, a type of financial option where the option to exercise depends on the underlying crossing or reaching a given barrier level is referred to as a barrier option. Barrier options are always cheaper than a similar option that is not having barrier. The purpose of creating a barrier options was that…

What do you understand by Pin Risk?

What do you understand by Pin Risk?

When the underlier of an option contract settles close to the option’s strike value at expiration then the Pin risk occurs. In such circumstances, the underlier is said to have pinned. The writer (seller) of the option cannot predict with 100% accuracy whether…

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