Options Glossary, Pit, Capital,Capital Gain,Capital Loss,Trading pit,Capitalization-Weighted Index
Uncovered Options Trading System
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Options Glossary - Most Used Terms
Pit
A specific location on the trading floor of an exchange designated for the trading of a specific option class or stock.
See Also:
Capital: The amount of money an individual or business has available.
Capital Gain: The profit realized when a capital asset is sold for a higher price than the purchase price.
Capital Loss: The loss incurred when a capital asset is sold for a lower price than the purchase price.
Trading pit: A specific location on the trading floor of an exchange designated for the trading of a specific option class or stock.
Capitalization-Weighted Index: A stock index which is computed by adding the capitalization (float times price) of each individual stock in the index, and then dividing by the divisor. The stocks with the largest market values have the heaviest weighting in the index.