Glossary

An order instructing the broker to Sell a security when a specific price is reached, below the current price, to control risk of loss.

A trading strategy applied to options where a trader holds a position containing a call and a put with the same expiration date and srike price.

A trading strategy applied to options where the trader holds a position in a call and a put with different strike prices, but with the same expiration and underlying asset.

The specific price at which an option contract may be exercised.

A price chart pattern consisting of three price bars that indicates a trend reversal. A pivot from from a high suggests resistance where a pivot from a low suggests support.

A price level determined by historical data where a security’s price tends to stop falling.

An agreement to exchange one currency for another, at a specified rate of exchange.

Alphanumeric characters that identify publicly traded companies within exchanges.

Elements of a data set collected at the same time. In trading, this is typically applied to trades, where calculations can be applied to test strategies for options trading.