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Trading Terms

Struck

When an option is exercised, it means the holder is choosing to buy or sell the underlying securities at a predetermined price. This is known as the strike price. It is set when the option contract is created and remains fixed until the expiration date. The strike price is a crucial factor in determining the profitability of an option trade. It can also be used to calculate the option's intrinsic value. Therefore, understanding the concept of strike price is essential for anyone interested in finance and investing.

Lighters

In the world of finance, barges play an important role in facilitating the unloading of sea vessels, especially in situations where traditional harbour facilities are not acc...

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IRA

An essential tool for retirement planning, the Individual Retirement Account or IRA is a popular choice among employees. It enables individuals to contribute a portion of th...

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Support Line

A professor of finance would define a horizontal support level as a graphical representation of a price point where a downward trend has halted and the price has either st...

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Pyramid

A key strategy for investors to bolster their holdings is by utilizing the maximum buying power offered through a margin account, which can result in both paper and realized ...

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