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Glossary · Trading basics · U

All terms

Undefined risk in plain English.

A position whose maximum loss isn't capped by another option — a short call, a short strangle. Brokers require more margin for it, and losses can be many times the premium collected.

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Track

Trading basics

29 terms in this track

Taught in

Iron condors and strangles: trading a range

In the index

117 of 129

Filed under U

Connections

8

Related terms mapped below

01

The idea, in context

How to read the picture above and where the Academy teaches it.

Reading the illustration

Defined risk: the loss has a floor (rose) and the credit a ceiling (gold) — both known before you enter.

This definition usesPremiumStrangle

In French: Risque non défini

Where it’s taught

Trading basics

Iron condors and strangles: trading a range

“Iron condors and strangles: trading a range” introduces this term with worked examples, a quiz and the trades around it. The Academy is part of the YieldCove membership.

About the AcademyOpen the lesson (members)

02

8 terms around this one — the words its definition uses, its lesson siblings and the terms that build on it.

  • Used in this definition
  • Same lesson
  • Builds on this term
  • Same track

03

Where to go next

Understand it, try it with real numbers, then track it for free.

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