Time value

The amount by which the value of the Option exceeds the intrinsic value.


Describes the change in value of an Option over time.

The change in value stems from the reduction in the time to expiration and hence the reduction in the life of the Option.

An approximation of the decrease in the price of an Option over a period of time when all other factors are held constant.
Theta is generally expressed on a daily basis. For example, if a call has a price of USD3.00 and a theta of 0.10, one day later, with all else unchanged, the call would have a price of USD2.90 (USD3.00 - (.10 x 1)).
Generated by a mathematical model, Theta depends on the stock price, strike price, volatility, interest rates, dividends, and time to expiration.

Trailing stop

A Trailing Stop order is a stop order that has a trigger price that changes with the spot price.

As the market rises (for long positions), the stop price rises according to the proportion set by the user, but if the market price falls, the stop price remains unchanged.

This type of stop order helps an investor to set a limit on the maximum possible loss without limiting the possible gain on a position.

It also reduces the need to constantly monitor the market prices of open positions.

Transactions not booked

Trades, commissions and so on, that have not yet been booked. For example, a trade executed today, will be booked next business day.