Ladder option

A ladder option is an option where the strike set at issue changes over time. There are set prices or “rungs” as on a ladder. If the underlying hits one of these “rungs” the strike is reset to this new level. The issuer credits the difference between the strike valid until that time and the reset strike. The issuer pays out this sum immediately or at the end of the term.


The term leverage generally refers to any technique used to multiply gains and losses. Leverage means the investor can participate disproportionately in the performance of the underlying. Leverage serves to strengthen (leverage effect). Leverage is the percentage by which the price of a call option will theoretically rise or fall by if the price of the underlying
rises or falls by 1 percent. It is only of limited significance because it assumes equally strong
movements in the absolute price of the leveraged product and the underlying. A better measure for determining leverage is the omega.

Leveraged product

A derivative which reacts disproportionally to price movements in its underlying. A disproportionately high performance relative to the underlying can be achieved through leverage together with a lower investment of capital.

Limit order

A limit order can be a buy order for a number of securities at or below a set price or a sell order at or above a set price.


Listing, official listing or stock exchange listing refers to official admission to trading of a security. Normally the issuing company applies for listing but in some cases the stock exchange can list a company.

Long call

The seller of a call option holds a long call position. This position entitles the investor to acquire the underlying asset on a previously determined date at a set price or if desired, to let the call expire.

Long position

With a long position, the investor holds a position in a security or derivative for which he expects the price to rise.

Long put

The buyer of a put option holds a long put position. This position entitles the buyer to sell the underlying asset at a previously determined date and set price or if desired, to let the put expire.

Long straddle

Long straddle refers to a strategy in options trading whereby the same number of call and put options with the same underlying, strike and expiration date are bought.


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