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Short Calendar Ratio Spread

A calendar ratio spread which involves buying short-term at-the-money options of the same type (both calls or both puts) and…

CTM Option

An abbreviation for close-to-the-money option; an option contract in which the underlying’s market price is very near to the strike…

Close-To-The-Money Option

An option contract in which the underlying’s market price is very near to the strike price. For example, a call…

Consistent Pricing

It refers to consistent FX points pricing spread which is the basis for the interbank market functioning. This pricing ensures...

OTM Put

It stands for out-of-the-money put; a put option with a strike price being below the combined amount of its underlying’s...

Out-of-The-Money Put

A put option with a strike price being below the combined amount of its underlying’s market price and the premium,...

OTM Call

It stands for out-of-the-money call; a call option with a strike price being above the net amount of its underlying’s...

Out-of-The-Money Call

A call option with a strike price being above the net amount of its underlying’s market price minus the premium,...

OTM

It stands for out of the money; for a derivative, it refers to a situation where it does not make...

Out of The Money

For a derivative, it refers to a situation where it does not make a payoff to the holder. A call...