Vanilla Strategy

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Definition of 'Vanilla Strategy'

An approach to investing or to business decision-making that is basic and common. Some investors and businesses excel because they choose an ordinary, vanilla strategy, while others succeed through innovation. In derivatives trading, a vanilla strategy is the use of two different plain vanilla instruments, such as swaps, at the same time.
Investopedia Says

Investopedia explains 'Vanilla Strategy'

For example, a vanilla strategy for retirement saving might include saving at least 10% of one's annual income, investing in diversified portfolio of stocks and bonds through tax-advantaged savings accounts like a 401(k) and Roth IRA, and buying a home with a plan to pay off the mortgage before reaching retirement. There is nothing interesting or unique about this strategy - it is "vanilla" because it is ordinary.

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'Vanilla Strategy'

  • How To Use FX Options In Forex Trading

    http://www.investopedia.com/articles/forex/11/forex-options-basics.asp
    ... Basic options strategies always start with plain vanilla options. This strategy
    is the easiest and simplest trade, with the trader buying an outright call or ...

  • Options Greeks: Introduction | Investopedia

    http://www.investopedia.com/university/option-greeks/
    ... Greeks can be incorporated into strategy design at a precise level using mathematical ...
    find a calendar spread as an off-the-shelf, plain vanilla approach. ...

  • Options Greeks: Introduction | Investopedia

    http://www.investopedia.com/university/option-greeks
    ... Greeks can be incorporated into strategy design at a precise level using mathematical ...
    find a calendar spread as an off-the-shelf, plain vanilla approach. ...

  • Options Greeks: Introduction | Investopedia

    http://www.investopedia.com/university/option-greeks/default.asp
    ... Greeks can be incorporated into strategy design at a precise level using mathematical ...
    find a calendar spread as an off-the-shelf, plain vanilla approach. ...

  • An Introduction To Swaps

    http://www.investopedia.com/articles/optioninvestor/07/swaps.asp
    ... This would reduce some of the market risks associated with Strategy 2. The ... This
    introduction to the concept of plain vanilla swaps and currency swaps should be ...

  • 2011's Most Innovative ETFs

    http://stocks.investopedia.com/stock-analysis/2011/2011s-Most-Innovative-ETFs-SPY-SPLV-ITLY-ALD-DSUM-HDGE-WDTI-ROOF1218.aspx
    ... Moving beyond plain-vanilla indexing, 2011 saw the introduction of a variety
    of new strategy-based funds. The Active Bear ETF (ARCA ...

  • Advanced Bond Concepts: Duration | Investopedia

    http://www.investopedia.com/university/advancedbond/advancedbond5.asp
    ... Duration of a Vanilla or Straight Bond Consider a vanilla bond that pays ... Volatility
    is an important factor in determining your strategy for capitalizing on ...

  • Currency Swap Basics

    http://www.investopedia.com/articles/forex/11/introduction-currency-swaps.asp
    ... In contrast to plain vanilla interest rate swaps and return based swaps ... will typically
    implement currency swaps as part of a comprehensive hedging strategy. ...

  • Follow Growth Trends With These 9 Stocks

    http://stocks.investopedia.com/stock-analysis/moneyshow/FollowGrowthTrendsWithThese9Stocks.aspx
    ... It’s really an alpha strategy, so we can go with the market, or we can go against
    the market. ... I’ma very plain vanilla guy when it comes to that. ...

  • 5 Reasons Why ETFs Work For Young Investors

    http://www.investopedia.com/articles/younginvestors/09/etfs-ideal.asp
    ... to Exchange-Traded Funds Wide Range of ETFs The first ETFs, that were introduced
    in the late 1980s and early 1990s, were relatively plain-vanilla products that ...

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