Buying a credit default swap (CDS); a long position in a credit default swap (CDS). It is equivalent to shorting...

A complex and versatile option trading strategy (basically an albatross spread) which involves buying one deep in-the-money option, selling one...

A hedge that involves taking a long position in futures contracts so as to lock in a price. When a...

A long position in a payer swaption. This position gives the holder the opportunity to pay the fixed rate and...

The long position which is taken by the holder (buyer) of an option. In other words, the long side has...

A range forward contract which involves taking two opposite option positions on the same underlying. For example, a firm expects...

In general, a reinvestment position constitutes a new investment position that is taken re-using/ re-deploying the funds freed up from...

A position in options (a situation/ relationship expressed originally as vega) in which any increase in the implied volatility of...

An investment strategy designed to mitigate an existent risk. In this type of hedging, a security is usually short to...

A market situation that occurs when price decreases incites traders holding long positions to sell their ways out of their...