Tick Size

• A horizontal spread is a simultaneous long and short position in derivatives for the same underlying asset and strike price, but with different expiration dates.

Fixing is the practice of fixing the price of a product instead of letting it be determined by the forces of the free market.#

• The Witching Hour is the last hour of trading before options or other derivatives contracts expire.

• Binary options depend on the outcome of the offer “yes or no”.

• Binary options depend on the outcome of the offer “yes or no”.

• Alternative trading systems (ATS) are platforms for coordinating large purchase and sale transactions.

• An American option is a type of option contract that allows holders to exercise their rights at any time up to and including the expiration date.

• An application-specific integrated circuit (ASIC) miner is a computerized device or hardware that uses an ASIC solely to mine bitcoin or another cryptocurrency.

• Arbitrageurs are investors who exploit market inefficiencies of any kind. They are necessary to ensure that inefficiencies between markets are smoothed out or kept to a minimum.

A cession is a transfer of rights or property from one person to another.#

• In the money (ATM) are calls and puts where the exercise price is equal to or very close to the current market price of the underlying security.

• An atomic swap is a cryptocurrency exchange between two parties who want to exchange tokens from different blockchains.

• Ax (or “chopping axe”) refers to the desired position that the trader wants to take.

• Backwardation is when the current price of the underlying asset is higher than the prices traded in the futures market.

• Barrier options are a type of exotic option in which the payoff depends on whether the option reaches or exceeds a predetermined barrier price.

• Bear call spreads are formed by buying two call options, one long and one short, with different strike prices but the same expiration date.

• A beneficial owner is a person who enjoys the benefits of ownership, despite the fact that the ownership of the property is registered in a different name.

• Boundary conditions were used to establish the minimum and maximum possible values of call and put options prior to the introduction of binomial tree and Black-Scholes pricing models.

• A box spread is an option arbitrage strategy that combines buying a bullish call spread with a corresponding bearish put spread.

• In accounting, the break-even point is calculated by dividing the fixed costs of production by the unit price minus the variable costs of production.

• The break-even price describes the change in value that only corresponds to covering the initial investment or cost.

• A bull call spread is an option strategy used when a trader bets that a stock will have a limited increase in value.

• A bull spread is an optimistic option strategy used when an investor expects a moderate increase in the price of the underlying asset.

• A buy order to open is commonly used by traders to open positions on a given option or stock.

• Purchasing power is the money an investor has to buy securities.