Above Par
Qualification of a security whose market value is above the nominal value.
Additional Margin
Embodies the margin, which would have to be rendered with the adverse price development accepted for the next day to offset all positions.
adjusted
The description of a position, which is neither long nor short.
Agio
In stock exchange trading: the difference between a security’s nominal value and higher market value, expressed in % of the nominal value.
In foreign exchange trading: the difference between the spot price and the higher forward price.
Allocation
The process through which the clearing house calculates the clearing member with long positions, who will oppose the delivery of the basic securities. Since the same clearing member mostly has both long and short positions in the same contract, the assignment algorithm is programmed in such a way that the number of deliveries to be effectively settled is as small as possible between clearing members.
allotted short position
A short position option, which has been allotted to be exercised and for which no delivery has yet taken place.
Allotting
A random process, through which the stock exchange determines those option writers, who must meet their received obligation and consequently deliver or accept the basic value.
American Option
An option, which can currently be exercised up to and including the expiry date.
Arbitration