Fibo Group
  • English
    • Deutsch
    • Italiano
    • Español
    • Português
    • Polski
    • Українська
    • فارسی
    • Bahasa Indonesia
    • 中文
    • العربيّة
    • Tiếng Việt
    • ภาษาไทย
    • Melayu
    • Türkçe
    • Русский
  • Syncronize time

    If the syncronized time does not match with the time of your computer, configure the paramenters of summer time and time zone. All times in the site will be translated to your local time.

+44 (845) 09-50-118
+44 (845) 09-50-118
  • Client Area
  • Trading
    Trading platforms
    • MetaTrader 4
    • MetaTrader 5
    • cTrader
    • WebTerminal MT4
    • WebTerminal MT5
    • cTrader Copy
    • FIBO Forex Drive
    Markets
    • Forex
    • Spot metals
    • Cryptocurrency
    • Contracts for Difference (CFDs)
    • Point Value Calculation
    Account Types
    • MT4 NDD
    • MT4 Cent
    • MT4 NDD No Commission
    • MT4 Fixed
    • MT5 NDD
    • cTrader NDD
    • cTrader Zero Spread
    • Islamic Account
    Trading Services
    • Account Registration
    • Deposit and Withdrawal options
    • Promotions
    • Competitions
    • Glossary
    • FAQ
  • Investing
    PAMM Services
    • How it works
    • For investors and managers
    • Becoming a PAMM Agent
    • PAMM Rating
    • FAQ
    Metatrader 4&5 Signals
    • Signals rating
    • FAQ
  • Partners
    • Become a Partner
    • IB Remuneration Calculation
    • Becoming a PAMM-agent
    • Trading Informers
    • FAQ
  • Analytics
    Analytics
    • Market analysis
    • Market Forecasts
    • Economic Calendar
    • Trading session
    • Interest rates
    • Financial Instruments
    • Shares
    • Quotes archive
    • Video courses
    • Forex for beginners
  • About us
    • Our Offices
    • Regulation
    • Awards and Recognition
    • News
    • Documents
  • Client Area
  • Call-back request
  • Fibo Group /
  • Trading /
  • Trading Services /
  • Glossary /

Glossary

  • Fibo Group /
  • Trading /
  • Trading Services /
  • Glossary /
Back

Premium 


bonus30

Within the financial world, "premium" refers to any additional cost or prices paid for specific financial instruments - like options or insurance policies - beyond its base cost or price. Premium is often seen as representing features, benefits or protection offered by an instrument that investors or traders require in order to successfully navigate markets successfully. A deeper understanding of premium is key for those wanting to venture into financial investments successfully.

Content
  • Premium in Options Trading
  • Premium in Insurance
  • Factors Affecting Premiums
  • Premium as an Indicator

Premium in Options Trading

When trading options, premium is defined as an amount that an option buyer pays an option seller in exchange for having the right to buy or sell an underlying asset at a specified strike price within a predefined time period (known as expiration). Influences that determine this premium could include asset price volatility and current market interest rates as well as time remaining until expiration and any applicable expiration penalties; they also present opportunities for traders looking to take advantage of fluctuating option premiums to profit from price movements.

Premium in Insurance

Premium is an individual or entity's payment to their insurance provider in exchange for protection from specified risks. Premium amounts vary based on factors like coverage level and profile as well as potential claim estimates from insurance providers; they can be paid annually, semiannually quarterlyly monthly depending on policy terms.

Factors Affecting Premiums

Multiple factors can have an effect on premium amounts for options trading and insurance policies. Market conditions, supply and demand dynamics, interest rates and the perceived risk associated with an asset or event insured against may all impact premium amounts; additionally personal factors like age, health status or driving record could impact how premiums are determined for individuals or entities.

Premium as an Indicator

Certain instruments' premiums serve as indicators of market sentiment or expectations in financial markets. For instance, bonds' premium can serve as a barometer to show whether investors trust an issuer to meet debt obligations while in options trading higher premiums can signal greater market instability or uncertainty.

A clear understanding of premium is critical to investors and individuals seeking financial instruments or insurance coverage. From options trading to protection policies, premium represents the price placed on individual features or features provided by an instrument/policy; by considering factors influencing premiums individuals can make informed decisions that navigate financial landscape effectively.

  • Pool-hopping
  • Profit
Follow us on social networks if you'd like to stay tuned to our analytics anywhere you are.
  • Trading
    • Trading platforms
      • MetaTrader 4
      • MetaTrader 5
      • cTrader
    • Markets
      • Forex
      • Spot metals
      • Contracts for Difference (CFDs)
    • Account Types
      • MT4 NDD
      • MT4 NDD No Commission
      • MT4 Fixed
      • MT5 NDD
      • cTrader NDD
      • cTrader Zero Spread
      • Islamic Account
      • Swap history
      • Spread Archive
    • Trading Services
      • Account Registration
      • Deposit and Withdrawal options
      • Promotions
      • Glossary
      • FAQ
  • Investing
    • PAMM Services
      • How it works
      • For investors and managers
      • Becoming a PAMM Agent
      • PAMM Rating
      • FAQ
    • Metatrader 4&5 Signals
      • Signals rating
      • FAQ
  • Partners
    • Become a Partner
    • IB Remuneration Calculation
    • Becoming a PAMM-agent
    • Trading Informers
    • FAQ
  • Analytics
    • Analytics
      • Market analysis
      • Market Forecasts
      • Economic Calendar
      • Interest rates
      • Financial Instruments
      • Shares
      • Quotes archive
      • Video courses
  • About us
    • About us
      • Offices
    • Our Offices
    • Regulation
    • Awards and Recognition
    • News
    • Documents
© 1998—2023 FIBO Group, Ltd.
  • Client's complaint procedure
  • Privacy policy

FIBO Group, Ltd. (registered at 2nd Floor, O'Neal Marketing Associates Building, Wickham`s Cay II, P.O. Box 3174, Road Town, Tortola VG1110, British Virgin Islands) is regulated by the Financial Services Commission (FSC) BVI, license registration number: SIBA/L/13/1063.

FONTEN CORPORATION LIMITED (registered number 94046) is registered in Suite 925a, Block 8/9, Europort, Gibraltar. 

Unfortunately the services of the company are not provided to residents of United Kingdom, North Korea and USA. The full list of countries is available in the documents for clients section.

Call-back request
+
Choose date
—
Thanks!
The application is sent, we will call you back.
Ok
Account opening
+
Congratulations! You have successfully registered with FIBO Group!
Your access details have been sent to the specified email.
Continue
Demo account opening
+
Congratulations! You have successfully registered with FIBO Group!
Your access details have been sent to the specified email.
Continue
Become FIBO Group partner
+
Congratulations! You have successfully registered with FIBO Group!
Your access details have been sent to the specified email.
Continue