Knowledge

Okoora infrastructure Glossary

Understand core FX, risk, and execution concepts used across Okoora’s infrastructure.

A

American Option American Trigger Amortizing Swap Analytical VaR Arbitrage Asian Option Ask Price At The Money (ATM) Option At The Money Forward

B

Barrier Option Basis Risk Basket Option Bid Bid-Ask Spread Binary Option

C

Call Option Cash Flow Hedge Collar (Cylinder Strategy)Commodity Risk Compound Option Contingent Option Convexity Covered Call Covered Interest Arbitrage Cross-Currency Swap Currency Forwards Currency Futures Currency Options Currency Overlay Currency Risk Currency Swap

D

Delivery in Finance Delta Delta Hedging Derivatives Double No Touch Option Dynamic Hedging

E

Effective Exchange Rate Embedded Finance Equity Risk Eurex European Option European Trigger Exchange Rate Risk Exotic Options Expiry Date

F

Foreign Exchange Swap (FX Swap)Forward or Forward Contract Forward Rate Agreement (FRA)Futures Contract

G

H

Haircut (Collateral)Hedge Hedge Ratio Historical VaR Historical Volatility

I

Implied Volatility In The Money Option Interest Rate Parity (IRP)Interest Rate Risk Interest Rate Swap (IRS)Intrinsic Value

K

KIKO Option (Knock-In Knock-Out Option)

L

M

Margin Margin Call Mark-to-Market (MTM)Market Risk Mid Price Monetary Policy Impact Monte Carlo VaR

N

Naked Option Natural Hedge Natural Hedging No Touch Option Notional Amount

O

Offer One Touch Option Open Position Over The Counter (OTC)Over-the-Counter (OTC) Market

P

Pips Plain Vanilla Option Premium (Options)Put Option

R

Reconciliation Reverse Barrier Option Rho Risk Reversal Rolling Hedge

S

Settlement Risk Speculative Hedge Spot Date Spot Market Spot Rate Spread Strike Price Strike Price (Exercise Price)Swap Contract Synthetic Strategy

T

The Greeks Theta (Time Decay)Time Value of Money Translation Risk

V

Vanilla Option VaR (Value at Risk)Vega Virtual Bank Account Volatility

Z

Zero Cost Strategy Zero-Cost Collar

American Option Bid-Ask Spread Currency Futures Equity Risk Hedge Margin Call Open Position Speculative Hedge