Glossary U


Trader slang for when the market is unchanged.

Uncovered Call Or Put

Another term for naked call or put.

Underlying (Stock Or Security)

The stock or other security that determines the value of a derivative security and that (with the exception of cash-settled options) would be purchased or sold if an option on that underlying stock or security was exercised. Examples of underlying securities are stocks, bonds, futures and indices.

Unsystematic Risk

The company-specific microeconomic factors that affect an individual stock. Theoretically, it's the risk in a portfolio that can be reduced through diversification. Compare to systematic risk.


A term used to describe a trade made at a price higher than the preceding trade.

Up Tick/Plus Tick Rule

SEC regulation governing the market price at which a short sale may be made. Meaning, if a stock on a given day has already dropped by more than 10% since the previous day's close it must trade higher before it can be shorted again. This rule does not apply to exchange-traded funds (ETFs).


Successive upward price movements in a security over time.