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Pin risk
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Pin riskA risk that the writer of an options or futures contract faces when the price of the underlying asset closes at or very near the exercise price of the contract upon expiration.
RELATED TERMS--------------------------------------
Risk
The possibility of loss; the amount that one may lose when investing.
Writer
A person who makes an opening sale of an option contract.
Futures
Contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange.
Contract
A term of reference describing a unit of trading for a financial or commodity future. Also, the actual bilateral agreement between the buyer and seller of a transaction as defined by an exchange.
Price
The cost of a good or service to the consumer.
Underlying
1) In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised. 2) In equities, the common stock that must be delivered when a warrant is exercised, or when a convertible bond or convertible preferred share is converted to common stock.
Asset
Is the taxable basis of a property, imposed by the municipality. Often it is at a fraction of the market value.
Exercise
To implement the right of the holder of an option to buy (in the case of a call) or sell (in the case of a put) the underlying security.
Expiration
The time an option contract lapses.
SIMILAR TERMS--------------------------------------
PREVIOUS AND NEXT TERMS--------------------------------------
Piggy back registration
When an underwriter allows existing holdings of a company's shares to be sold in conjunction with an offering of new public shares.
Piggy back warrants
Additional warrants that are acquired following the exercise of primary warrants.
Piggyback registration
When a securities underwriter allows existing holdings of shares in a corporation to be sold in combination with an offering of new public shares.
Piggybacking
A broker who is trading stocks, bonds or commodities in a personal account following a trade just made for a customer.
PIK (Payment-in-kind) securities
Highly bonds or preferred stock that pay interest or dividends through additional bonds or preferred stock.
Pin risk
Pink sheets
Refers to over the counter trading. Daily publication of the National Quotation Bureau that reports the bid and ask prices of thousands of OTC stocks, as well as the market makers who trade each stock.
Pinning the strike
The tendency of a stock's price to close near the strike price of heavily traded options (in the same stock) as the expiration date nears.
Pip
Used for listed equity securities. Smallest unit of a currency (i.e., cents for US dollars).
Pipeline
The underwriting process that must be completed with the SEC before a security can be offering for sale to the public.
Pit
A specific area of the trading floor that is designed for the trading of commodities, individual futures, or option contracts.
RELATED TERMS--------------------------------------
Risk
The possibility of loss; the amount that one may lose when investing.
Writer
A person who makes an opening sale of an option contract.
Futures
Contracts covering the sale of financial instruments or physical commodities for future delivery on a commodity exchange.
Contract
A term of reference describing a unit of trading for a financial or commodity future. Also, the actual bilateral agreement between the buyer and seller of a transaction as defined by an exchange.
Price
The cost of a good or service to the consumer.
Underlying
1) In derivatives, the security that must be delivered when a derivative contract, such as a put or call option, is exercised. 2) In equities, the common stock that must be delivered when a warrant is exercised, or when a convertible bond or convertible preferred share is converted to common stock.
Asset
Is the taxable basis of a property, imposed by the municipality. Often it is at a fraction of the market value.
Exercise
To implement the right of the holder of an option to buy (in the case of a call) or sell (in the case of a put) the underlying security.
Expiration
The time an option contract lapses.
SIMILAR TERMS--------------------------------------
PREVIOUS AND NEXT TERMS--------------------------------------
Piggy back registration
When an underwriter allows existing holdings of a company's shares to be sold in conjunction with an offering of new public shares.
Piggy back warrants
Additional warrants that are acquired following the exercise of primary warrants.
Piggyback registration
When a securities underwriter allows existing holdings of shares in a corporation to be sold in combination with an offering of new public shares.
Piggybacking
A broker who is trading stocks, bonds or commodities in a personal account following a trade just made for a customer.
PIK (Payment-in-kind) securities
Highly bonds or preferred stock that pay interest or dividends through additional bonds or preferred stock.
Pin risk
Pink sheets
Refers to over the counter trading. Daily publication of the National Quotation Bureau that reports the bid and ask prices of thousands of OTC stocks, as well as the market makers who trade each stock.
Pinning the strike
The tendency of a stock's price to close near the strike price of heavily traded options (in the same stock) as the expiration date nears.
Pip
Used for listed equity securities. Smallest unit of a currency (i.e., cents for US dollars).
Pipeline
The underwriting process that must be completed with the SEC before a security can be offering for sale to the public.
Pit
A specific area of the trading floor that is designed for the trading of commodities, individual futures, or option contracts.
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This dictionary contains 24549 terms.
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