Monthly Archives: September 2026
Outright forward contract Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Is an Outright Forward Contract? An outright forward contract is a customised agreement between two parties to exchange an asset, often a currency, at a set price on a specific future date. Unlike a standard futures contract, the terms are negotiated directly rather than fixed by an exchange. How an Outright Forward Differs From Continue Reading
Outright option contract Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Is an Outright Option Contract? An outright option contract refers to a single options position bought or sold on its own, rather than as part of a combined, multi-leg strategy. It involves one strike price, one expiration, and one decision: buy a call or a put. Outright vs Multi-Leg Strategies A multi-leg strategy combines Continue Reading
Over-the-counter Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Does Over-the-Counter Mean? Over-the-counter (OTC) trading takes place directly between two parties, typically through a network of brokers and dealers, rather than on a centralised exchange. It’s commonly used for products that aren’t listed on larger exchanges. How OTC Trading Differs From Exchange Trading On an exchange, prices are determined publicly through a central Continue Reading
Overexposure Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Is Overexposure? Overexposure describes a situation where a trader has allocated an outsized share of their capital to a single product or position, leaving their overall portfolio heavily dependent on how that one asset performs. How Overexposure Happens It can build up gradually, for example by repeatedly adding to a winning position, or happen Continue Reading
Overnight position Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Is an Overnight Position? An overnight position is any trade still open at the end of the trading day, carried through to the next session rather than closed out beforehand. It remains exposed to whatever happens in the market while it’s held. Why Overnight Positions Incur Rollover Fees Holding a leveraged position overnight typically Continue Reading
Overnight rate Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Is the Overnight Rate? The overnight rate is the interest rate at which banks lend to one another for very short periods, typically just one night, to manage their day-to-day reserve requirements. How the Overnight Rate Is Set In many countries, the overnight rate is closely tied to a central bank’s benchmark interest rate, Continue Reading
Oversold Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Does Oversold Mean? A market or asset is described as oversold when sustained selling has pushed its price to a level considered too low relative to recent trading, raising the possibility of a rebound. How Traders Identify Oversold Conditions Oversold readings are commonly flagged using technical indicators such as the Relative Strength Index (RSI) Continue Reading
Paper trading Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Is Paper Trading? Paper trading is a trading simulation that offers beginners the chance to trade without risking real money. Orders are placed and tracked using live or near-live market prices, but no actual capital changes hands, allowing a trader to practise decision-making in conditions that closely resemble the real market. How Paper Trading Continue Reading
Pending order Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Is a Pending Order? A pending order is an instruction to buy or sell a product at a specified price in the future. Rather than executing immediately at the current market price, a pending order sits inactive until the market reaches the level you’ve set, at which point it triggers automatically. Common Types of Continue Reading
Non-deliverable forward Definition
Written on September 3, 2026 at 5:03 pm, by wwwvftradingsc
What Is a Non-Deliverable Forward? A non-deliverable forward (NDF) is a type of forward contract settled in cash, based on the difference between an agreed rate and the prevailing market rate at settlement, rather than through physical delivery of the underlying currency. This structure allows two parties to agree on a future exchange rate without Continue Reading
