Options Terms

  1. Limit Up

  2. Linear Price Scale

  3. Liquefied Natural Gas

  4. Liquidation Margin

  5. Liquidity Preference Theory

  6. Listed Option

  7. LNG

  8. Loan Credit Default Swap (LCDS)

  9. Local

  10. Local Volatility

  11. Locally-Capped Contract

  12. Lock Limit

  13. Lock-Up Option

  14. London International Financial Futures And Options Exchange - LIFFE

  15. London Metal Exchange - LME

  16. Long (or Long Position)

  17. Long Hedge

  18. Long Jelly Roll

  19. Long Leg

  20. Long Market Value

  21. Long Put

  22. Long Straddle

  23. Long The Basis

  24. Long-Term Care (LTC) Insurance

  25. Long-Term Equity Anticipation Securities - LEAPS

  26. Longevity Derivatives

  27. Look-Alike Contracts

  28. Lookback Option

  29. Loss Carryforward

  30. Lot

  31. Low Exercise Price Option - LEPO

  32. Macro-Hedge

  33. Managed Forex Accounts

  34. Managed Futures

  35. Managed Futures Account

  36. Margin

  37. Mark To Market - MTM

  38. Mark To Model

  39. Market Index Target-Term Security - MITTS

  40. Market Is Up

  41. Market Proxy

  42. Market Technicians Association - MTA

  43. Markets in Financial Instruments Directive - MiFID

  44. Married Put

  45. Master Swap Agreement

  46. Maturity

  47. Max Pain

  48. Maximum Loan-to-Value Ratio

  49. Merger Securities

  50. Merton Model

  51. Mezzanine Debt

  52. Miami Stock Exchange

  53. Micro-Hedge

  54. Mid-Atlantic Option

  55. Mini-Sized Dow Options

  56. Minimum Price Contract

  57. Mismatch Risk

  58. MJSD

  59. Model Risk

  60. Modidor

  61. Modified Following

  62. Money At Call

  63. Money Manager

  64. Moneyness

  65. Montreal Exchange

  66. Mortality And Expense Risk Charge

  67. Mortgage Pipeline

  68. Mortgage Rate Lock Float Down

  69. Mortgage Short Sale

  70. Mountain Range Options

  71. Mr. Copper

  72. MSCI All Country World Commodity Producers Sector Capped Index (MSCI AWC)

  73. Multi Index Option

  74. Multi-Advisor Fund

  75. Multi-Leg Options Order

  76. Multibank Holding Company

  77. Multiple Linear Regression - MLR

  78. Multivariate Model

  79. Mumbai Interbank Forward Offer Rate - MIFOR

  80. Municipals-Over-Bonds Spread - MOB

  81. Must Be Filled - MBF

  82. Mutualization Of Risk

  83. Myron S. Scholes

  84. Nadex

  85. Naked Call

  86. Naked Option

  87. Naked Position

  88. Naked Put

  89. Naked Writer

  90. Narrow Basis

  91. National Commodities And Derivatives Exchange - NCDEX

  92. National Futures Association - NFA

  93. Natural Capital

  94. Natural Gas Equivalent

  95. Natural Gas ETF

  96. Natural Gas Liquids - NGL

  97. Natural Gas Storage Indicator - EIA Report

  98. Near The Money

  99. Nearby Month

  100. Negative Butterfly

Hot Definitions
  1. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option is purchased and the lower premium option is sold - both at the same time. The higher the debit spread, the greater the initial cash outflow the investor will incur on the transaction.
  2. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious debt when government leaders use borrowed funds in ways that don't benefit or even oppress citizens. Some legal scholars argue that successor governments should not be held accountable for odious debt incurred by earlier regimes, but there is no consensus on how odious debt should actually be treated.
  3. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the acquiring company will make an offer for the outstanding shares.
  4. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by additional investment would not warrant the expense. A harvest strategy is employed when a line of business is considered to be a cash cow, meaning that the brand is mature and is unlikely to grow if more investment is added.
  5. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will be executed at a specified price (or better) after a given stop price has been reached. Once the stop price is reached, the stop-limit order becomes a limit order to buy (or sell) at the limit price or better.
  6. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The principle states that, for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put another way, 80% of consequences stem from 20% of the causes.
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