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Glossary

This is the price at which a trader can buy an asset in the financial markets. The ask price is a part of the formula which is used to calculate the expiry level of an asset.

An asset is a generally transferable and negotiable instrument on a financial market. It provides its owner with income and / or capital gains, to compensate for some taking of risk. Assets are instruments used as the underlying for options. In general, these are currency pairs, indices, stocks, and commodities.

A financial term, which means that the current price of the underlying asset is the same as the price when the option was purchased.

Assets have a bid price, this is the price at which a trader can sell an asset in the financial markets. The bid price is a part of the formula which is used to calculate the expiry level of an asset.

A call option provides the trader with the opportunity to gain profit if the asset rally is above the open rate of the transaction.

Commodities is a general name given to raw materials from a variety of sectors such as energy, food, and metals.

A currency pair is the quotation of the relative value of a currency unit against the unit of another currency in the foreign exchange market. The currency that is used as the reference is called the counter currency or quote currency and the currency that is quoted in relation is called the base currency or transaction currency.

The entry level of the underlying asset when the position is placed.

The price of the underlying asset when the position is placed. This price determines whether the option is in-the-money, out-the-money, or at-the-money, when the option expires.

Future contracts are a type of instrument. A future contract allows to buy or sell an asset at a future date and at a price agreed to in advance. The transaction is binding. There must be an exchange, unless the contract was re-sold. While this option has, as its name suggests, an option character, the holder of the share may choose to exercise or not his or her obligation and conduct a transaction.

A financial term, which means that a trader has profited from their trade.

An index (plural Indices) represents a group of stocks trading on the same exchange.

The average of the bid and ask, this price represents the real price of the market with no spreads between bid and ask.

An option which gives a trader a fixed payout once the price of the underlying asset reaches or surpasses a predetermined level.

A financial term, which means that a trader has not profited from their trade.

The amount of money earned from a trade.

A put option provides a trader with the opportunity to gain profit, if the asset rally's below the open rate of the transaction.

Reuters is one of the world’s leading financial data providers.  OneTwoTrade receives its expiry rates from Reuters.

Stocks confirm that the holder of stocks has purchased a percent of a company; as such it is entitled to a profit sharing relative to the percent he has in the company. In case of a bankruptcy, the stock holders are the last to receive any of the company’s assets.

The strike price is determined by the price of the underlying security at the moment at which the option is purchased. When the option expires, the price of the underlying security is compared to the strike price to determine whether the option was profitable or not.

Each asset has its own trading hours and trading days and holidays. Sometimes you will see that even though the asset is supposed to be traded, it is not listed. In such a case simply press "refresh" button.