Glossary
| A | B | C | D | E | F | H | I | L | M | N | O | P | R | S | T | U | V | W |
| Additional Margin An additional margin serves to cover the extra collateral needed for the projected cost of closing a transaction. These potential closure costs can arise should - extrapolated from to the current market value of the portfolio - within 24 hours a notional adverse rate development were to occur (a so termed "worst case loss" situation). This applies to options and non-spread future positions. |
| American Option An option that may be exercised on any trading day prior to the expiry of a futures contract. |
| Arbitrage Taking intentional advantage of simultaneous price, exchange or interest rate discrepancies of a financial instrument (stocks, bonds, currency, commodities, options) on different financial markets. In theory the arbitrage is without risk, i.e. offers a risk-free profit. |
| At the money (ATM) An option whose strike price is approximately equal to the market price of the underlying. |