A last day payout chart graphically displays the value of the selected option...
A leg is an option in a spread or a strategy.
LIBOR (London Interbank Offered Rate) is a reference rate provided by the BBA (British Banker's Association).
A market is said to be liquid when it has high liquidity...
The term liquidity relates to the ease in which something can be converted into cash in the marketplace.
A loan is an instrument whereby the borrower receives an amount of money (i.e., the principal) from the lender...
The loan KIKO lets the customer hedge a loan related foreign exchange exposure by converting that exposure to a different currency.
A local capped Asian basket option is similar to a regular Asian basket with the addition of a local (or individual) floor and cap that lets you set a minimum and maximum limit to each of the normalized asset values on each fixing date.
If you are long, you have bought a trade to establish a market position and have not yet closed out this position through an offsetting trade.
A lookback option is a path dependent option.
In the commodities market, a lot is a predefined unit of a commodity of uniform grade.