The Black Scholes or Black Scholes Merton model is a mathematical model used to estimate the price of European Style derivatives, including options contracts. The model forms the basis of the Black-Scholes formula, which can be rewritten in different forms to solve for various options trading parameters. [click to read more]
A traditional close order with special feature of a predetermined trigger price before the order is released in the market. The trigger price of a Stop Order is a price point beyond which point he is not willing to lose more in a given trade.[click to read more]
The difference between the bid price and ask price which indicates how close the buyers and sellers are to an average price. Liquid stocks and options have small (tight) bid/ask spreads, which ensures good pricing and a future market to close the position.