Investopedia Staff

Investopedia Staff

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  1. Trading Instruments


    Rho refers to an options (or book of options) risk exposure to changes in interest rates.
  2. Trading Instruments


    An axe (or "axe to grind") is the interest that a trader shows in buying or selling a security that is typically already ...
  3. Trading Instruments

    Notional Principal Amount

    The notional principal amount, in an interest rate swap, is the predetermined dollar amounts on which the exchanged interest ...
  4. Trading Instruments

    Index Option

    An index option is a financial derivative that gives the holder the right, but not the obligation, to buy or sell the value ...
  5. Trading Instruments

    Put-Call Ratio

    The put-call ratio is the ratio of the trading volume of put options to call options, used as an indicator of investor sentiment ...
  6. Trading Instruments

    Convenience Yield

    A convenience yield is the benefit or premium associated with holding an underlying product or physical good, rather than ...
  7. Trading Instruments

    Quadruple Witching

    Quadruple witching refers to a date that entails the simultaneous expiry of stock index futures, stock index options, stock ...
  8. Trading Instruments

    Unbiased Predictor

    An unbiased predictor is a theory that spot prices at some future date will be equal to today's forward rates, but ignores ...
  9. Trading Instruments

    American Option

    An American option is an option that can be exercised anytime during its life.
  10. Trading Instruments

    Outright Forward

    An outright forward is a forward currency contract that locks in an exchange rate for a specific delivery date and a specific ...
  11. Trading Instruments

    Cash Settlement

    Cash settlement is a method used in certain derivatives contracts where upon expiry or exercise the seller of the instrument ...
  12. Trading Instruments

    Breakeven Price

    Breakeven price is the amount of money for which an asset must be sold to cover the costs of acquiring and owning it.
  13. Real Estate

    In Escrow

    In escrow is a status for an item that has been transferred to a third party to be released later to a grantee as part of ...
  14. Real Estate

    Recourse Loan

    A recourse loan is a type of financing that allows a lender to seek damages and attach the accounts of the borrower if they ...
  15. Real Estate

    Use And Occupancy - U&O

    Use and occupancy refers to a type of permit required when real property is transferred or an agreement that allows temporary ...