Option (finance)In finance, an option is a contract which conveys to its owner, the holder, the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date, depending on the style of the option. Options are typically acquired by purchase, as a form of compensation, or as part of a complex financial transaction.
Binary optionA binary option is a financial exotic option in which the payoff is either some fixed monetary amount or nothing at all. The two main types of binary options are the cash-or-nothing binary option and the asset-or-nothing binary option. The former pays some fixed amount of cash if the option expires in-the-money while the latter pays the value of the underlying security. They are also called all-or-nothing options, digital options (more common in forex/interest rate markets), and fixed return options (FROs) (on the NYSE American).
Put optionIn finance, a put or put option is a derivative instrument in financial markets that gives the holder (i.e. the purchaser of the put option) the right to sell an asset (the underlying), at a specified price (the strike), by (or on) a specified date (the expiry or maturity) to the writer (i.e. seller) of the put. The purchase of a put option is interpreted as a negative sentiment about the future value of the underlying stock. The term "put" comes from the fact that the owner has the right to "put up for sale" the stock or index.
StraddleIn finance, a straddle strategy involves two transactions in options on the same underlying, with opposite positions. One holds long risk, the other short. As a result, it involves the purchase or sale of particular option derivatives that allow the holder to profit based on how much the price of the underlying security moves, regardless of the direction of price movement. A straddle involves buying a call and put with same strike price and expiration date.
Trading strategyIn finance, a trading strategy is a fixed plan that is designed to achieve a profitable return by going long or short in markets. The main reasons that a properly researched trading strategy helps are its verifiability, quantifiability, consistency, and objectivity. For every trading strategy one needs to define assets to trade, entry/exit points and money management rules. Bad money management can make a potentially profitable strategy unprofitable. Trading strategies are based on fundamental or technical analysis, or both.
Automated trading systemAn automated trading system (ATS), a subset of algorithmic trading, uses a computer program to create buy and sell orders and automatically submits the orders to a market center or exchange. The computer program will automatically generate orders based on predefined set of rules using a trading strategy which is based on technical analysis, advanced statistical and mathematical computations or input from other electronic sources. These automated trading systems are mostly employed by investment banks or hedge funds, but are also available to private investors using simple online tools.
USB flash driveA USB flash drive (also called a thumb drive in the US, or a memory stick in the UK & Pen Drive in many countries) is a data storage device that includes flash memory with an integrated USB interface. It is typically removable, rewritable and much smaller than an optical disc. Most weigh less than . Since first appearing on the market in late 2000, as with virtually all other computer memory devices, storage capacities have risen while prices have dropped.
Stock market indexIn finance, a stock index, or stock market index, is an index that measures the performance of a stock market, or of a subset of a stock market. It helps investors compare current stock price levels with past prices to calculate market performance. Two of the primary criteria of an index are that it is investable and transparent: The methods of its construction are specified. Investors may be able to invest in a stock market index by buying an index fund, which is structured as either a mutual fund or an exchange-traded fund, and "track" an index.
Optical disc driveIn computing, an optical disc drive is a disc drive that uses laser light or electromagnetic waves within or near the visible light spectrum as part of the process of reading or writing data to or from optical discs. Some drives can only read from certain discs, but recent drives can both read and record, also called burners or writers (since they physically burn the organic dye on write-once CD-R, DVD-R and BD-R LTH discs). Compact discs, DVDs, and Blu-ray discs are common types of optical media which can be read and recorded by such drives.
Solid-state driveA solid-state drive (SSD) is a solid-state storage device that uses integrated circuit assemblies to store data persistently, typically using flash memory, and functioning as secondary storage in the hierarchy of computer storage. It is also sometimes called a semiconductor storage device, a solid-state device or a solid-state disk, even though SSDs lack the physical spinning disks and movable read–write heads used in hard disk drives (HDDs) and floppy disks. SSD also has rich internal parallelism for data processing.
