Glossary H

Handle

The whole-dollar part of the bid or offer price. For example, if the bid and offer prices for an option are 3 1/8 bid, offer 3/1/2, the handle is 3.

Hedge

A position in stock or options that is established to offset the risk of another position in stock or options.

High (H)

In reference to the O,H,L,C, "H" represents the high price of the session.

Holder

Someone who has bought an option or owns a security.

Hypothecation

The act of pledging of securities as collateral, as might be done in a margin account.

Historical Volatility

The annualized standard deviation of percent changes in the price of a stock over a specific period. Compare to implied volatility.