Uncovered Options Trading System
Variable Limit is a price system that allows for larger than normal allowable price movements under certain conditions. In periods of extreme volatility, some exchanges permit trading at price levels that exceed regular daily price limits.
Variable Price Limit is a price limit schedule, determined by an exchange, that permits variations above or below the normally allowable price movement for any one trading day.
Variation Margin is a payment made on a daily or intraday basis by a clearing member to the clearing organization based on adverse price movement in positions carried by the clearing member, calculated separately for customer and proprietary positions. Variation Margin is an additional margin required to be deposited
Vault Receipt is a document indicating ownership of a commodity stored in a bank or other depository and frequently used as a delivery instrument in precious metal futures contracts.
Vega is the coefficient measuring the sensitivity of an option value to a change in volatility.
Vertical Spread is a trading strategy that involves the simultaneous purchase and sale of options of the same class and expiration date but different strike prices, including bull vertical spreads, bear vertical spreads, back spreads, and front spreads. There are other types of spread trading strategies, such as Horizontal Spread and Diagonal Spread.
Visible Supply, in opposite to invisible supply, usually refers to supplies of a commodity in licensed warehouses. Visible Supply often includes floats and all other supplies "in sight" in producing areas.
Volatility is a statistical measurement of the change in price of a futures contract, security, or other instrument underlying an option over a given time period.
Volatility is one of the most important factors in an option's price. It measures the amount by which an underlying asset is expected to fluctuate in a given period of time. It significantly impacts the price of an option's premium and heavily contributes to an option's time value. In basic terms, volatility can be viewed as the speed of change in the market, although you may prefer to think of it as market confusion. The more confused a market is, the better chance an option has of ending up in-the-money. A stable market moves slowly.
Volatility measures the speed of change in the price of the underlying instrument or the option. The higher the volatility, the more chance an option has of becoming profitable by expiration. That's why volatility is a primary determinant in the valuation of options' premiums. There are options strategies that can be used to take advantage of either scenario.
Volatility Quote Trading refers to the quoting of bids and offers on option contracts in terms of their implied volatility rather than as prices.
Volatility Spread is a trading strategy that involves a delta-neutral option spread designed to speculate on changes in the volatility of the market rather than the direction of the market.
Volatility Trading is trading strategies designed to speculate on changes in the volatility of the market rather than the direction of the market.
Volume is the number of purchases and sales of futures contracts made during a specified period of time, often the total transactions for one trading day.
Volume of Trade is the number of contracts traded during a specified period of time. It may be quoted as the number of contracts traded or as the total of physical units, such as bales or bushels, pounds or dozens.
Warehouse Receipt is a document certifying possession of a commodity in a licensed warehouse that is recognized for delivery purposes by an exchange.
Naked options trading is very risky - many people lose money trading them. It is recommended contacting your broker or investment professional to find out about trading risk and margin requirements before getting involved into trading uncovered options.