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Net Position

The difference between the open long contracts and the open short contracts a trader holds in a specific instrument or...

Naked Option Strategy

An unhedged option strategy which exclusively follows one of two basic strategies: short call (selling or writing call options) and...

Naked Put

A put option which confers on the holder the right to buy the underlying stock at a price below the...

Naked Option

An option whose buyer or seller has no position in the underlying security. It is a short call or short...

Naked Position

An actionless strategy in derivatives where an investor does nothing to hedge a position he has already taken in a...

Position Vega

The vega value of a derivative instrument, a spread, or a position multiplied by the notional principal. It corresponds to...

Position Delta

The sum of all positive and negative deltas within a hedge trade position. It captures the delta of a complex...

Refinancing Position

In general, a refinancing position constitutes a new financing position that is taken rolling over the funds that have reached...

Reinvestment Position

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

Haircut

The margin or deposit that is tied up to cover a position taken by a financial intermediary such as a...