[This message was posted by John Harris of BondMart Technologies, Inc. <[email protected]> to the "Derivatives" discussion forum at http://fixprotocol.org/discuss/15. You can reply to it on-line at http://fixprotocol.org/discuss/read/a9794718 - PLEASE DO NOT REPLY BY MAIL.]
The term "covered" applies to short option positions (short meaning you have sold the option). A covered call is a short call combined with a long position in the underlying instrument. A covered put is a short put combined with a short position in the underlying instrument. In each case the position corresponding to the option should be equivalent as to size. Best, John > Hello, > > Tag203 has two possible values in the SingleOrderMsg: CoveredOrUncovered > But no description on its usage > > Does any one knows if it it used: > 1) By the buy-side to report that they are Covered or not by another already > existing position (pure reporting for regulation purpose on some countries?) > 2) By the buy-side to ASK the broker to Cover him (like Delta Hedging) ? > > Thanks for your advise [You can unsubscribe from this discussion group by sending a message to mailto:[email protected]] -- You received this message because you are subscribed to the Google Groups "Financial Information eXchange" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/fix-protocol?hl=en.
