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Cartwheel

A complex options trading strategy which involves taking a long position in a ratio call spread (call backspread) and a...

Synthetic Quanto Spread

A quanto spread that is constructed using two forward rates. It is mainly used to hedge quanto risk in the interdealer market. This spread can be...

Reverse Knockout Option

A knock-out option in which the barrier is triggered when the option gets in the money (ITM). The barrier level knocking the option out would...

Tunnel Option

An option-based strategy that is mostly used in currency (and interest rate) markets and involves the purchase of a foreign exchange...

Option Beta

In essence, beta is a measure of how a stock’s volatility changes in relation to the overall market. An option's beta is the covariance of the option's return...

TARF

It stands for target redemption forward; a structured product (specifically a target redemption note) which consists of a strip of forwards each of which...

Target Redemption Forward

A structured product (specifically a target redemption note) which consists of a strip of forwards each of which has its payout as the difference between...

Atlas Option

A mountain range option in which some of the best and worst performing stocks are trimmed from the basket of underlying...

Conditional Call

An option (here a call) that allows the holder of a callable bond (which is also a convertible bond) to...

Conditional Call Option

An option (here a call option) that allows the holder of a callable bond (which is also a convertible bond)...