Glossary

Non-standardised options contract, the details of which are mutually agreed by both parties and which is not traded on a stock exchange.

The cancellation of a position by entering a converse position.

A transaction where a short or long position is offset by the purchase or sale of the same number of contracts with the same maturity date.

The number of non-offset contracts following a stock exchange session.

A trading method on the stock exchange whereby the floor traders shout out their supplies and demand or use hand signals for this.

A trading method on the stock exchange whereby the floor traders shout out their supplies and demand or use hand signals for this.

The position, which was entered through the purchase or sale of a contract and has not yet been offset by an opposed position.

The purchase or sale of contracts through which a new position is entered.

An agreement, which entitle a contracting partner the unilateral right to buy (call) or sell (put) a previously agreed amount of goods or security at an agreed price within a defined time.

An investor with a long position in option from which the right – but not the obligation – results to buy or sell the basic value at the exercise price.

Standardised option contract, which is approved for trade on a stock exchange.

A market participant, who buys options contracts.

All options of the same type with the same basic security.

The price, which the options buyer pays the options writer for the right to buy (call) or sell (put) the basic security.

The price, which the options buyer pays the options writer for the right to buy (call) or sell (put) the basic security.

A mathematical model to calculate the theoretical options price and the implicit volatility of an option. The Black&Scholes, Cox, Ross and Rubinstein options price models are among the most famous models.

The total of all options of the same type (puts or calls) with the same basic security, basic price and expiry date.

A seller of an options contract, who enters the obligation to buy or sell the basic security if the options buyer decides to exercise his option.

A share option, which is hedged through the provision and pledging of a corresponding number of prescribed titles by the options writer.

Orders, which stay in the system until they are either used or cancelled.

Off-exchange market for securities, which takes place directly via telecommunications systems between the traders.

Non-standardised options contract, the details of which are mutually agreed by both parties and which is not traded on a stock exchange.

An option, whose exercise price is clearly above or below the price of the basic security. A call is out of the money if the market value of the basic security is lower than the exercise price; a put is out of the money if the market value of the basic security is higher than the exercise price.

An option, whose exercise price is clearly above or below the price of the basic security. A call is out of the money if the market value of the basic security is lower than the exercise price; a put is out of the money if the market value of the basic security is higher than the exercise price.