yandex watch
forex ask logo
forex ask banner
Welcome, Guest

Forgot Password

Not yet a Member? Register Here

Loader
Question Details
Username: ForexGuy

Rating:
Guru Stars

Asked to: Heng Kim

Date Created: 11 Mar 2016
Category 27
Tag Financial
Question What is 'Illiquid Option'?
Advice from Guru
Hello ForexGuy,

An option contract that cannot be sold for cash quickly at the prevailing market price.

Most options are illiquid when they are far away from their expiration dates. If you're holding an illiquid option, you will usually notice a very large bid-ask spread on the contract. This is because there are not enough buyers to accommodate those wanting to sell.

Unfortunately, illiquid options have very low or no open interest. So, if you are trying to sell an illiquid option, there is a good chance you'll be selling at a discount, if at all.
Ask advice to Heng Kim

List of Gurus

Advice
  • Guru Most read Heng Kim
    Heng Kim 2019-09-24   03:46:59

    Hi PrettyWoman, The job market is the market in which employers search for

    Read more
  • Guru Most read Anton Luyten
    Anton Luyten 2019-09-11   10:12:45

    Hello Fluffy, A harami cross is a Japanese candlestick pattern that consists

    Read more
  • Guru Most read Chaoxiang Lee
    Chaoxiang Lee 2019-09-07   11:28:32

    Hi Maria, A caplet is a kind of call option based on interest rates. The

    Read more
  • Guru Most read Apinya Kamon
    Apinya Kamon 2019-09-04   01:56:33

    Hello ForexGuy, A false market occurs when prices are manipulated and impacted

    Read more
  • Guru Most read Tom Burke
    Tom Burke 2019-08-31   08:08:12

    Hello LuckyWoman, The yearly probability of living is determined by consulting

    Read more
  • Guru forex ask most-read Talitha Taslim
    Talitha Taslim 2018 - 10 - 31

    Hello Fluffy, A bear market is a condition in which securities prices fall and

    Read more
  • Guru forex ask most-read Apinya Kamon
    Apinya Kamon 2017 - 05 - 10

    Hello Fluffy, The rickshaw man is a long candlestick with a doji body that

    Read more
  • Guru forex ask most-read Dara Madee
    Dara Madee 2017 - 05 - 15

    Hello Peter, A transfer price is the price at which divisions of a company

    Read more
  • Guru forex ask most-read Dara Madee
    Dara Madee 2017 - 01 - 24

    Hi Maria, A type of volatility swap where the payout is linear to variance

    Read more
  • Guru forex ask most-read Dara Madee
    Dara Madee 2018 - 05 - 03

    Hi Fluffy, Offshore identifies any item that is located or based outside of

    Read more
  • Guru forex ask newest Heng Kim
    Heng Kim 2019 - 09 - 24

    Hi PrettyWoman, The job market is the market in which employers search for

    Read more
  • Guru forex ask newest Anton Luyten
    Anton Luyten 2019 - 09 - 11

    Hello Fluffy, A harami cross is a Japanese candlestick pattern that consists

    Read more
  • Guru forex ask newest Chaoxiang Lee
    Chaoxiang Lee 2019 - 09 - 07

    Hi Maria, A caplet is a kind of call option based on interest rates. The

    Read more
  • Guru forex ask newest Apinya Kamon
    Apinya Kamon 2019 - 09 - 04

    Hello ForexGuy, A false market occurs when prices are manipulated and impacted

    Read more
  • Guru forex ask newest Tom Burke
    Tom Burke 2019 - 08 - 31

    Hello LuckyWoman, The yearly probability of living is determined by consulting

    Read more
Read More