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Glossary
Naked Option

Naked Option

Term explanation

The sale of an option without owning the underlying asset or an offsetting option position.

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Margin

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Notional Value of an Option

Table of Contents

1. Term explanation

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The content provided is for informational and educational purposes only and is not intended as, nor should it be construed as, financial, investment, or trading advice, or a recommendation to buy, sell, or hold any options. Options trading carries significant risks, including the potential for substantial losses, and may not be suitable for all investors. Before engaging in options trading, you should consult with a qualified financial advisor or other professional to evaluate your specific financial situation and objectives.