Tag: TI
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Time Decay
Concept of Time Decay in Futures TradingIn this context of financial law, the following is a definition of Time Decay: The tendency of an option to decline in value as the expiration date approaches, especially if the price of the underlying instrument is exhibiting low volatility. See Time Value
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Time Spread
Concept of Horizontal Spread (also called Time Spread or Calendar Spread) in Futures TradingIn this context of financial law, the following is a definition of Horizontal Spread (also called Time Spread or Calendar Spread): An option spread involving the simultaneous purchase and sale of options […]
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Tie Out
Concept of Tie Out in the context of derivatives contract, by the International Swaps and Derivatives Association (ISDA): The process where bronze records are matched in the DTCC Trade Information Warehouse. These matched trades are not legally binding and are known as bronze records as opposed […]
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Time Value
Concept of Time Value in Futures TradingIn this context of financial law, the following is a definition of Time Value: That portion of an option’s premium that exceeds the intrinsic value. The time value of an option reflects the probability that the option will move into-the-money. Therefore, […]
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Tick
Concept of Tick in Futures TradingIn this context of financial law, the following is a definition of Tick: Refers to a minimum change in price up or down. An up-tick means that the last trade was at a higher price than the one preceding it. A down-tick means that the last price was lower than…