Glossary Source: http://www.eex.com
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Additional Margin
If positions in futures and options can not be closed out to the final settlement price but to a for the ECC disadvantageous price, additional losses arise. The additional margin covers these losses. In general, these losses depend on the underlying's price movement. The maximal price movement expected in the underlying is called additional margin parameter.
Additional Margin Parameter
Parameter which describes the maximal expected price movement of the underlying in consideration of a certain confidence level. The additional margin parameter is used in the calculation of the additional margin.
American Option
An option which can be exercised on each day of trading until the last day of trading.
Ask
Sell order
Assignment
If an option is exercised, the clearing house assigns a sell position in the same option to the buy position executed in options by means of a drawing procedure.
At-the-money
An option with regard to which the market price of the underlying security equals the exercise price is at-the-money.
Auction
Form of trading for ascertaining the price and for matching of buy and sell orders to form transactions. During the auction all the orders in the order point are matched to form transactions at a specified point in time. Usually that price is established as the auction price at which the biggest quantity of contracts is bought and/or sold.
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