Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Oracle’s stock hits record high on upbeat earnings

News

EUR/USD Price Hinges on these Two Events

News

US dollar spikes amid smaller rate cut prospects

News

Can Apple save the stock market?

News

Gold loses shine on mixed US NFP data

News

Week Ahead Preview: 9th of September

Trends & Analysis
News

Oracle’s stock hits record high on upbeat earnings

News

EUR/USD Price Hinges on these Two Events

News

US dollar spikes amid smaller rate cut prospects

News

Can Apple save the stock market?

News

Gold loses shine on mixed US NFP data

News

Week Ahead Preview: 9th of September

Vanilla option definition

Vanilla options are simply options with no special or unusual features. They may be either calls or puts, but not a combination of the two; more complex options strategies can be built out of vanilla options. Vanilla options give the holder the right, but not the obligation, to buy an asset at a predetermined price on a set date. They can be used in various financial markets, such as the stock, forex, and commodity markets.

 

Types of vanilla options

Different types of option exist and are used in different markets. By far the most common are European options, which have a single expiry date. Much less common are American options, where they can be exercised at any time, and Asian options, which offer a ladder of specific dates up to a final expiry date where the option can be exercised. Normally when traders refer to options and option pricing they are talking about European options.

 

An option is vanilla if it has no additional characteristics and is just a lone call or put option. Exotic options can be formed either with specialised contracts, or by layering multiple call and put options to create a unique pay-out profile. These are known as exotic options, and even if they are made out of multiple vanilla options, do not qualify as vanilla.

 

Start trading with ADSS

ADSS offers a range of global markets for traders, with opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.

 

See all glossary trading terms


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.