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exotic option investment & finance definition
An option with a nonstandard feature. A lookback option that allows the owner flexibility in selecting an exercise price is an example of an exotic option.

 


Exotic Currency Trading Pairs
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In the world of Forex currency trading there are currencies with different strengths. Out of all the currencies of the world the strongest currencies are called major currencies.

Exotic interest rate option
An non-vanilla interest rate derivative security; which can usually be expressed in terms of vanilla interest rate derivatives such as interest rate swaps, Swaptions, interest rate caps, interest rate floors.

Exotic Currency Pairs
The 'exotics' are those pairs that are emerging economies rather than developed/industrialized nations. Here are a few of the more commonly traded exotics: ...

Exotic Option Any non-standard option.
Expiration Date The end of the life of an option.
Ex-Date The first day a stock is traded, where the buyers are not entitled to the dividend that was previously declared ...

As long as housing prices continued to rise and homeowners continued to make timely payments, the exotic packages of mortgage securities paid handsome returns.

Exotic options
Options with non-standard pay-out structures usually traded over-the-counter (OTC) and designed specifically for a user.
Free LME Market Data ...

Exotic currencies have a severe risk together with an ability to gain very high possible profits.

Exotic - A less broadly traded currency.
Exposure - In foreign exchange, a potential for gain or loss because of movement in foreign exchange rate. There are three primary types of exposure: ...

Exotic Carry Trade Strategies
The Carry Trade strategy in forex trading involves buying a high yielding currency and selling a lower yielding currency. In doing this you will capture the interest rate differential.

Exotic Currency - A currency with little liquidity and limited dealing, which is neither a major or minor currency.
Forward Outright - A foreign exchange deal with a maturity beyond the spot delivery date.

Exotic Option
An option that differs from common American or European options in terms of the underlying asset or the calculation of how or when the investor receives a certain payoff.

Exotic - A less broadly traded currency.
Expiry Date - The last day on which the holder of an option can exercise his right to buy or sell the underlying security.

Exotic option
Any of a wide variety of options with unusual underlying assets or terms. For example, rainbow options depend on the amount by which one asset outperforms another.
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Exotic Options: Any of a wide variety of options with non-standard payout structures or other features, including Asian options and lookback options. Exotic options are mostly traded in the over-the-counter market.

EXOTIC OPTIONS Generic term for the more sophisticated option strategies which have features over and above the basic contracts.
EXPIRATION DAY Last day on which an option can be exercised after which is expires.

Exotic - A less broadly traded currency.
Exponentially Weighted Moving Average (EMA) - While the simple moving average distributes weight equally across the data series, ...

Exotic Options: Any of a wide variety of options with non-standard payout structures, including Asian options and Look back options. Exotic options are mostly traded in the over-the-counter market.

Exotic materials
Originally manufacturing yo-yos from wood, yo-yo technology improved in the 1960s when the industry switched to plastic.

Exotic Currency is currency that is not common in the foreign exchange market. These are usually from developing countries such as parts of Asia, the Middle East and Africa.

Exotic option
Option with more complex payment structures than those of plain-vanilla options. Example: Asian-style options.
Expiry
The contractually agreed date on which a limited-term derivative expires.

Exotic A less broadly traded currency.
Exposure (i) Net working capital - The current assets in a foreign currency minus current liabilities in the currency; ...

Exotic option
Refers to options that are more complex than simple put or call options. For example, a Caput is a call option on a put option. Exotic options trade over-the-counter.

- Exotic interest rate option
- Foreign exchange option ($5,726 billion)
- Interest rate option ($20,012 billion) ...

No, exotic pairs are not exotic belly dancers who happen to be twins. Exotic pairs are made up of one major currency paired with the currency of an emerging economy, such as Brazil, Mexico, or Hungary.

Options - Exotics
Spot
A spot contract is a binding obligation to buy or sell a certain amount of foreign currency at the current market rate, for settlement in 2-business days.

- Pricing exotics options using Monte Carlo, Milstein scheme can give us the solution to a more accurate option price with less time computation.

Vanilla and exotic options
The most common types of option are the simple American and European options which have fixed strike prices and expiry dates. These are common, mathematically simple, and comparatively well understood.

Caput
An exotic option. It represents a call option on a put option. That is, you purchase the option to buy a put option at a particular price on or before the expiriation date.

Exotic : A less broadly traded currency.
See all the definitions of the terms starting with the letter E.
F
Factory Orders : Economical indicator, The dollar level of new orders for...

The most interesting, and perhaps most useful exotic order type
available is the trailing stop. This allows you to set a certain price margin whereby as the stock hopefully
moves up, so does your trailing stop loss.

Exotic Option Any Option that is well out of the ordinary, hence not a "Plain Vanilla" Option. The list of Exotic Options changes over time.

These desks usually work under the exotic derivatives umbrella at each bank. As a result, it is difficult to establish exactly how much strategy index trading generates at each bank.

This explicitly excludes those exotic spreads put forth by some vendors, which are nothing more than computer generated coincidences which are not in any way related.

Barrier option: A type of "exotic" option that comes into existence or ceases to exist once a certain price is reached. They are often added to a "vanilla" or typical option to make the premium less expensive. For example, a 1.

Whether you're saving for an exotic vacation or to buy your first house, you're not alone in keeping a tight rein on your finances.

Before I go any further, we are not talking about exotic derivatives, the kind that tanked the economy and sent a financial tsunami through Wall Street.

"Exciting, Low-Risk Investment Opportunities" to participate in exotic-sounding investments - such as wireless cable projects, prime bank securities, and eel farms - have been offered through the Internet. But no investment is risk-free.

Stock trading seems like an exotic way to save money or earn a living. However, stock trading is a simple way to invest in the ownership of companies that an investor considers to be profitable.

While some investors may consider owning foreign stocks a little too exotic for their blood, successful traders should view this as a speculative opportunity to reap some handsome profits.

From the exotics, we trade only the Mexican peso (for obvious reasons). I watch the rest of the currencies, but I really don't like to trade in them because of the implied costs.

The 57-year-old Ajit Jain runs much of Berkshire's reinsurance operations, pricing exotic insurance contracts on events like natural disasters, the Final Four being canceled entirely, ...

In advanced forex trading, sometimes traders seek to trade exotic pairs that are difficult to find. Synthetic trading allows a trader to use advanced techniques to synthetically create an exotic pair that their broker may not offer.

Lookback Option: An exotic option whose payoff depends on the minimum or maximum price of the underlying asset during some portion of the life of the option.
Lot: A unit of trading. See Even Lot, Job Lot, and Round Lot.

Another way to classify the derivatives is by the use of the categories vanilla and exotic. The first type is simple and common, while the second refers to the more specialized and complicated derivatives.

Channel trading is less exotic but nevertheless works very well with currencies.
The primary reason is because currencies rarely spend much time
in tight trading ranges and have the tendency to develop strong trends. By ...

Then you can either wait or look for more exotic pairs, but that's the spread that could be a cost too high ...
Interpretation:
The carry trade has had its heyday some time ago, at the time, or there was a significant difference between 2 rates.

Dynamic Hedging : Managing Vanilla and Exotic Options by Nassim Nicholas Taleb
Technical Analysis for Dummies by Barbara Rockefeller
Trading Risk: Enhanced Profitability through Risk Control by Kenneth L. Grant ...

LookBack Options -Exotic options which allows the holder to "Look Back" at the price action of the underlying asset during expiration to decide the optimal price at which to exercise the Lookbacks Options. Read More About LookBack Options Here! ...

PetWatch iPhone App Creates Fun 'Photobomb' Experience With Exotic Animals
Publish Date: Mar 13, 2012 08:00 AM
Oracle Announces Production Release of Unbreakable Enterprise Kernel Release 2 for Oracle Linux
Publish Date: Mar 13, 2012 08:00 AM ...

This self-proclaimed nomad enjoys traveling to exotic places, scuba diving, and curling up with a good book. While she calls both Manila (Philippines) and New York "home." most of her possessions are currently in a condo in Las Vegas.

You should dismiss the thought that shorting is an unorthodox way of trading, or a kind of exotic activity reserved for hedge funds and sophisticated traders. It isn't.

I have a full time job, because I do what I love and I love what I do, in a delightfully exotic place. It doesn't pay hugely, but I look forward to Mondays MUCH more than I look forward to Fridays. From my income, I rigidly do the following: ...

In the service sector, the travel industry is considered a good example of a cyclical service; especially when it comes to flying to exotic getaway destinations.

The rise of computers and exotic derivatives on Wall Street is both a cause and an effect of quants. Such tools (along with the big bucks to be made) bring quants to the industry, who in turn create more such tools themselves.

INO Quotewatch Up to the minute quotes on all major currencies and many exotics. Also a good source for futures information and news.

We share our favorite sites for those investors who want to move beyond traditional equity investments and gain exposure to more exotic investments such as commodities, currencies, options and the like.
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A simple option whose terms and conditions do not include any provisions other than exercise style, expiry and strike. To compare with exotic options which have additional terms.
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It is very strong, more dent, bend and scratch resistant than gold, silver and platinum, is lightweight and importantly offers an exotic array of colors which other metals simply do not.

See also: Market, Trading, Stock, Option, Investment

Stock market Exit StrategiesExotic option

 
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