What Is to Scale Out?

“To scale out” is a term used in stock trading that refers to the act of selling part of your position in a stock after it has risen in value. For example, if you buy a stock for $10 and it rises to $20, you may choose to scale out by selling half of your … Read more

What Is a Letter of Credit and How Is It Used?

A Letter of Credit: Its Uses, Examples, and How It Works. What is the role of the paying bank under a letter of credit? The paying bank under a letter of credit is responsible for ensuring that the funds are available to pay the beneficiary when the letter of credit is presented. The paying bank … Read more


Vomma is the second order sensitivity of an option’s vega to changes in implied volatility. It is a measure of an option’s sensitivity to changes in implied volatility, and is also known as “skew risk” or “volatility risk.” What is Zomma? An option is a contract that gives the holder the right, but not the … Read more