Naked Option
This is an option position where the buyer or seller has no underlying security position.
These kinds of naked options are very risky. Profits are huge if the underlying asset moves in the direction desired by the investor. On the other hand, a writer of a naked option can lose big if the underlying asset moves in the opposite direction.
Tags: naked option, underlying security position
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What is “Must Be Filled” (MBF) in Options Trading
Must Be Filled (MBF) is a kind of trade that must be executed due to expiring options or futures contracts on those exchanges. Quite a few MBF orders are filled on the third Friday of each month because index options often expire on those days. MBF orders have the advantage of being exempt from short sale rules.
Tags: futures exchange, must be filled
Montreal Exchange
Montreal Exchange is located at Montreal, Canada, Montreal Exchange is the derivatives exchange of Canada. It is Canada’s chief derivatives exchange and facilitates option trading, trading of futures, swaps and several other derivative products etc. The exchange on this derivatives market is not as vast as Options market of US. The equity options trading on this exchange takes into account larger organizations of Canada.
Tags: interest rate derivatives, Montreal Exchange, S038P Canada 60 index
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