No touch option
This option is favored when an investor does not expect the underlying asset to hit the target price point at any time during the expected time frame. Usually, a no touch option offers a 75% return if the underlying More...
Inbound option
The inbound option is an option on a boundary instrument offering a pre-set or fixed 75% return if the underlying asset expires “inbound”, or within a given range formed by the upper/lower values. If the inbound More...
High option
An option on a high/low system offering a specific rate of return. The high option usually offers a 75% return when the underlying assets expires at a higher than expected price point and a 15% refund if the underlying More...
Current Price
Current price refers to the last price in real time, unless noted otherwise. Early closure describes when an investor has the opportunity to close an open position so that the option expires immediately. Expire More...
Value at Risk
Also known as VaR, Value At Risk is a widely used measure of the risk of loss on a portfolio at any given time. It helps to answer the question of what is the largest loss that is likely on this investment over More...
The Sharpe ratio
The Sharpe ratio was developed by William F. Sharpe and is also known as the Sharpe Index, the Sharpe Measure and the Reward-To-Variability ratio. The Sharpe ratio measures how well an investor is compensated for More...
Scalping
Scalping is a name given to a investment system to buy and sell quickly, typically at only a few cents higher than the original price paid. This is a trading strategy that seeks to accumulate multiple profits on More...
Reserve portfolio
A reserve portfolio is essentially the savings account fund of a central bank. Monetary policy directs the central bank to set aside funds for the required reserve amount. The central bank must show and provide More...
Open market operations
Also known as OMO, this relates to the federal government’s method of buying and selling of government securities in the open market to directly increase or decrease the amount of money in the banking system. Regulating More...
Money center
A money center is global bank that deals exclusively with national governments, large corporations and other banks. A money center does not borrow from or lend to individuals or consumers. Leading money centers More...