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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.

Open policy (OP)

An open policy is a form of insurance that offers coverage for multiple future shipments, with no set limit. This type of policy remains active until either the insurer or i...

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Futures Market

These contracts are used to hedge against the risk of price fluctuations in commodities, currencies, and financial instruments. The price of a futures contract is determined ...

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Back to back (or head and counter) credit

A documentary credit, also known as a counter credit, is a financing tool used by a seller, or importer, to purchase goods necessary to fulfill a sale covered by the origina...

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Profit Margin Expansion

A key metric in finance, the net profit margin is an indicator of a company's profitability. In the long-term, it reflects the ratio of a company's net profit margin in the ...

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