Options Terms

  1. Negative Carry

  2. Net Option Premium

  3. Netback

  4. Netfile

  5. Netting

  6. Neutral

  7. New York Board Of Trade - NYBOT

  8. New York Futures Exchange - NYFE

  9. New York Mercantile Exchange - NYMEX

  10. NFA Compliance Rule 2-43b

  11. Nick Leeson

  12. Night Cycle

  13. No Dealing Desk

  14. Nominal Quotation

  15. Non-Deliverable Forward - NDF

  16. Non-Equity Option

  17. Non-Member Trader

  18. Non-Open Market

  19. Non-Qualified Stock Option - NSO

  20. Noncallable

  21. Noncommercial Trader

  22. Nonfinancial Asset

  23. Noon Average Rate Contract - NARC

  24. Normal Profit

  25. North Sea Brent Crude

  26. Note Against Bond Spread - NOB

  27. Notional Value

  28. NYSE Amex Equities

  29. NYSE Arca

  30. OEX

  31. Offset

  32. Offsetting Transaction

  33. Oil ETF

  34. Omega

  35. Omnibus Account

  36. On Track

  37. One-Touch Option

  38. Online Trading

  39. OPEC Basket

  40. Open

  41. Open Interest

  42. Open Outcry

  43. Opening Transaction

  44. Operational Efficiency

  45. Option

  46. Option Agreement

  47. Option Chain

  48. Option Class

  49. Option Cycle

  50. Option Disclosure Document

  51. Option Income Fund

  52. Option Margin

  53. Option Premium

  54. Option Pricing Theory

  55. Option Schedule

  56. Option Series

  57. Option-Adjusted Spread (OAS)

  58. Optionable Stock

  59. Options Backdating

  60. Options Clearing Corporation - OCC

  61. Options Contract

  62. Options Industry Council - OIC

  63. Options On Futures

  64. Options Price Reporting Authority - OPRA

  65. Order Book Official

  66. OTC Options

  67. Out Of The Money - OTM

  68. Outperformance Option

  69. Outright Futures Position

  70. Outright Option

  71. Over-Hedging

  72. Overhang

  73. Overnight Index Swap

  74. Overwrite

  75. Overwriting

  76. Pacific Exchange - PCX

  77. Palladium

  78. Paper Profit (Paper Loss)

  79. Parity Price

  80. Participatory Notes

  81. Path Dependent Option

  82. Pay/Collect

  83. Payment Option ARM

  84. Pegging

  85. Perfect Hedge

  86. Performance Shares

  87. Period Certain

  88. Periodic Interest Rate

  89. Perpetual Option - XPO

  90. Perpetual Preferred Stock

  91. Philadelphia Semiconductor Index - SOX

  92. Philadelphia Stock Exchange - PHLX

  93. Phoenix Dollars

  94. Physical Delivery

  95. Physical Option

  96. Piggyback Warrants

  97. Pin Risk

  98. Pinning the Strike

  99. Pit

  100. Plain Vanilla

Hot Definitions
  1. National Best Bid and Offer - NBBO

    A term applying to the SEC requirement that brokers must guarantee customers the best available ask price when they buy securities and the best available bid price when they sell securities.
  2. Maintenance Margin

    The minimum amount of equity that must be maintained in a margin account. In the context of the NYSE and FINRA, after an investor has bought securities on margin, the minimum required level of margin is 25% of the total market value of the securities in the margin account.
  3. Leased Bank Guarantee

    A bank guarantee that is leased to a third party for a specific fee. The issuing bank will conduct due diligence on the creditworthiness of the customer looking to secure a bank guarantee, then lease a guarantee to that customer for a set amount of money and over a set period of time, typically less than two years.
  4. Degree Of Financial Leverage - DFL

    A ratio that measures the sensitivity of a company’s earnings per share (EPS) to fluctuations in its operating income, as a result of changes in its capital structure. Degree of Financial Leverage (DFL) measures the percentage change in EPS for a unit change in earnings before interest and taxes (EBIT).
  5. Jeff Bezos

    Self-made billionaire Jeff Bezos is famous for founding online retail giant Amazon.com.
  6. Re-fracking

    Re-fracking is the practice of returning to older wells that had been fracked in the recent past to capitalize on newer, more effective extraction technology. Re-fracking can be effective on especially tight oil deposits – where the shale products low yields – to extend their productivity.
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