The Cantor Exchange has compiled a list of terms and phrases relevant to trading digital options on the Exchange.

 

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

 


A

API

Application Program Interface.

Please visit the Cantor Exchange website for more information about connecting to the Exchange via our API.

 

Ask price

The lowest price a seller is willing to accept for a position.

 

Asset

Refers to all products available to trade on the Cantor Exchange.

For a complete list of assets, please visit Products.

 

At-the-money

Also known as On-the-money.

An options contract with a strike price that is identical to the current market value of the underlying asset.

If settled, an at-the-money contract would be worth $0.50 on the Exchange.

 

 

B

Bid price

The maximum price a buyer is willing to pay for a position.

 

Binary option

A simple Yes/No position about the underlying market value of an asset at a specified time in the future.

 

Buy

An options position.

Also known as a long position.

A contract that provides the purchaser the right to buy a contract at an agreed upon price (i.e. the strike price) at any time during the life of the contract (i.e. before the expiry time).

A Buy is purchased when expecting an increase in the market value of the underlying asset.

 

 

C

Cantor Clearinghouse

A sister company of the Cantor Exchange.

Cantor Clearinghouse, L.P., also known as “Cantor Clearinghouse,” has been approved by the CFTC as a registered Derivative Clearing Organization (DCO).

Cantor Clearinghouse provides all clearing services to any and all contracts on the Exchange.

Please visit the Cantor Exchange website for more information about Cantor Clearinghouse.

 

Cantor Exchange

Cantor Exchange is a CFTC approved Designated Contract Market (DCM).

Cantor Exchange establishes the rules of fair trading, offers the electronic trading platform for matching buyers and sellers, and supervises the trading practices of all participants in the market.

Please visit the Cantor Exchange website for more information about the Cantor Exchange.

 

CFTC

Refers to the Commodity Futures Trading Commission.

 

Clearing

The procedure through which all Exchange contracts are settled accordingly through Cantor Clearinghouse.

 

Clearinghouse

See Cantor Clearinghouse.

 

Contract

A forex/metals contract is an agreement between two Participants with opposing positions of the market (that is, 1 Participant with a Buy position and 1 Participant with a Sell position).

Each contract is worth $1 on the Cantor Exchange.

Please visit Contracts & Pricing for more information.

 

 

D

DCM

Designated Contract Market, as set forth by the CFTC.

 

Digital Options

Binary options traded on an exchange regulated by the CFTC.

 

 

E

End of day

For digital options contracts, 4:00PM ET on each Trading Day.

 

Ending net worth

The final value of your trading account at the End of Trading for a day.

 

Entity

Any Person other than a natural person (e.g. a corporation, partnership, sole proprietorship, trust, etc.).

 

Exchange

See Cantor Exchange.

 

Expiration, Expiration Time, Expiry

The predetermined time at which a contract expires or closes. Please note, a contract may close before the designated expiry.

The Cantor Exchange offers 4 standard expiries: 5 minutes, 20 minutes, end of hour, and end of day (4:00 PM ET).

Please visit Expiries for more information.

 

 

F

Flat position

The Participant has no open position in a given contract.

 

Forest Park BX

A Referring Partner of the Cantor Exchange.

Please visit the Forest Park BX website for more information.

For more information about Cantor Exchange Referring Partners, please visit Referring Partners.

 

Forex

Refers to foreign exchange.

 

 

G

GTC

Good Til Cancel order.

Limit Order type.

Standing Order.

An order that, after being placed, stays on the Exchange order book until one of the following events occurs:

• The order is filled

• The order is cancelled or replaced

• The contract reaches the expiry time

 

 

H

 

 

 

I

In-the-money

An options contract that, if settled, is worth $1 on the Exchange.

A Buy contract with a strike price less than the current market value of the underlying asset.

A Sell contract with a strike price greater than the current market value or the underlying asset.

 

IOC

Immediate Or Cancel order.

Limit Order type.

If there is no matching order on the order book when the order is submitted, the order is cancelled right away and is not left sitting on the order book.

 

ISV

Independent Software Vendor.

Refers to providers of trading interfaces for Participants to use on the Exchange.

For more information about Cantor Exchange ISVs, please visit Trading Interfaces.

 

 

J

 

 

K

 

 

L

Limit order

An order type.

An order to buy a contract at no more than a specific price (i.e. Limit Price) or sell at no less than a specific price (i.e. Limit Price).

All orders on the Exchange are Limit Orders.

 

Limit Price

The specified price at which a Limit Order is to be executed.

 

Long Position

See Buy.

 

M

 

 

 

N

Near-the-money

An options contract with a strike price that is near the current market value of the underlying asset.

 

NFA

Refers to the National Futures Association.

 

 

O

On-the-money

See At-the-money.

 

Order

A request by a Participant to buy or sell a contract with specified conditions (price, strike, expiry, order type, etc.) on or subject to the Rules of the Exchange.

 

Order type

Refers to Limit Order type.

Either IOC or GTC.

 

Out-of-the-money

An options contract with no intrinsic value on the Exchange, that is, when settled, an options contract that is worth $0.

A Buy contract with a strike price higher than the current market value of the underlying asset.

A Sell contract with a strike price lower than the current market value of the underlying asset.

 

 

P

Participant

Refers to Cantor Exchange Participants, that is, registered members of the Exchange.

Any Person that has been granted, and continues to have, Trading Privileges, or otherwise remains subject to the jurisdiction of the Exchanges under these rules.

 

Person

Any natural person, association, partnership, limited liability company (LLC), joint venture, trust, or corporation.

 

Pip

A number value in the forex market.

One pip is the smallest price change that an exchange rate can make.

The value of a pip can change between different currency pairs.

For non-Yen Currency pairs, 1 pip = .0001

For Yen currency pairs, 1 pip = .01

 

Position

Refers to either a Buy position or a Sell position when placing a trade.

Two anonymously matched opposing positions make up each contract.

 

Products

Refers to all assets available to trade on the Cantor Exchange.

Please visit Products for more information, including a complete list of Products available.

 

 

Q

Quantity

Refers to number of contracts when placing a trade on the Exchange.

 

 

R

Referred Participant

A Person that has been referred or solicited by a Referring Participant to become a Participant of the Exchange or whose Orders have been solicited by a Referring Participant.

 

Referring Participant/Partner

A Participant that has been approved by the Exchange to solicit or refer another Person to become a Participant (the Referred Participant) or to solicit a Referred Participant’s Order, but not to enter such Referred Participant’s Orders into the Trading System on behalf of that Referred Participant.

Please visit Referring Partners for more information.

 

Rolling Strikes

The generation of additional strikes as the market moves out of the norm.

 

 

S

Sell

An options position.

Also known as a short position.

A contract that provides the purchaser the right to sell a contract at an agreed upon price (i.e. the strike price) at any time during the life of the contract (i.e. before the expiry time).

A Sell is purchased when expecting a decrease in the market value of the underlying asset.

 

Settled position

A position that is closed at expiration time.

 

Settlement value

With respect the any contract, the value established at the end of each Trading Day.

 

Short position

See Sell.

 

Spread

The price difference between two contracts.

 

Standing order

An order that stays on the Exchange order book until one of the following events occurs: the order is filled; the order is cancelled or replaced; the order expires; the contract reaches the expiry time.

A Good Til Cancel (GTC) order is a type of standing order.

 

Strike price

The level at which an expiry is compared to determine the settlement value.

Please visit Strikes for more information.

 

 

T

TechFinancials

An Independent Software Vendor (ISV) for the Cantor Exchange.

Please visit the TechFinancials website for more information.

For more information about Cantor Exchange ISVs, please visit Trading Interfaces.

 

Trade

The purchase or sale of any options contract on the Exchange.

 

TradeWx

A data and technology company that offers a trading interface to access the Cantor Exchange weather market.

Please visit the TradeWx website for more information.

 

Trading Day

Any day on which the Exchange is open and available for the trading of Contracts and the Clearinghouse is open and available for clearing of Contracts.

Please visit the Cantor Exchange website for more information about Trading Days.

 

Trading Hours

The hours during which the Exchange is regularly open for trading.

Please visit the Cantor Exchange website for more information about Trading Hours.

 

Tradologic

An Independent Software Vendor (ISV) for the Cantor Exchange.

Please visit the Tradologic website for more information.

For more information about Cantor Exchange ISVs, please visit Trading Interfaces. 

 

 

U

Underlying

The relevant index against which an options Contract is valued on the Exchange.

 

 

V

 

 

W

 

 

Y

 

 

X

 

 

Z

 


Can’t find what you are looking for? Contact us!