DISCLAIMER: The definitions in this Glossary are for educational purposes only. They do not replace in any way the definitions used in local and global self-regulatory and regulatory codes and standards. The definitions in this Glossary do not in any way constitute advice. In no event shall Assure Hedge be liable for losses or damages arising from the use of information presented in this Glossary. We make every effort to ensure, but do not guarantee, the accuracy of the information in this Glossary. Information may contain technical inaccuracies or typographical errors. All content and information in this Glossary can be changed or updated without notice. If you find any inaccuracies or omissions in this Glossary, please let us know.

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Discover other concepts in our
currency hedging glossary

Greeks

On the options markets, the so-called “Greeks” are the numerical indicators that traders use to measure the risks a particular type of trade entails.

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Derivative

A derivative is a type of financial contract that gets its value from an underlying asset. In foreign exchange transactions, the underlying asset is typically a currency’s exchange rate.

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Out of the money

‘Out of the money’ is one of three terms used to describe an option’s value, or ‘moneyness’. The other two terms are ‘at the money ‘ and ‘in the money’. When an option is out of the money, its strike price — that is, the price at which you’d exercise the option — is lower than the market price.

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