by Henry Liverman | May 26, 2021 | Market Definitions
A determination set by the Supreme Court of the United States in 1946 that determines what qualifies as an “investment contract” and thus would be subject to US securities laws and regulations. It determined that an investment contract exists if an...
by Henry Liverman | May 26, 2021 | Market Definitions
The first derivative of delta that is used to try and gauge the price movement of an option relative to the amount is it in out out of the money (ie, if it is an options contract that only contains extrinsic value). When the option being measured is deep in or out of...
by Henry Liverman | May 26, 2021 | Market Definitions
An exchange where futures contracts are traded by participants. Today, the majority of futures trading (or derivatives contracts that lock in future delivery of a commodity or security at a price set at present) occurs electronically. Futures trading is regulated by...
by Henry Liverman | May 26, 2021 | Market Definitions
An overall increase in the cost of living that occurs when demand outpaces the available supply of a consumer good. This form of inflation is a key tenant of Keynesian economics, describing it as a result of an imbalance in the aggregate supply and demand. This is a...
by Henry Liverman | May 25, 2021 | Market Definitions
One of four major risk measures used by options traders (the others being gamma, theta, and vega). Within options trading, delta is a ratio (sometimes referred to the “hedge ratio”) that compares the price of an underlying asset with the change in the...
