Speculative Value
Speculative value is the portion of an option's price that is based on the expectation of future price moves. It is essentially the time value and volatility component.
It represents the premium paid for the potential gain. If the market does not move as expected, this value can be lost completely.
It is the core reason why option trading can be so profitable or costly. It is the gamble on volatility.
Glossary
Account Asset Value
Valuation ⎊ The account asset value represents the aggregated market worth of all holdings within a trading account, encompassing cash, cryptocurrencies, and derivative positions.
Collateral Value Shortfall
Collateral ⎊ The core concept underpinning Collateral Value Shortfall revolves around the adequacy of pledged assets securing obligations within cryptocurrency derivatives, options, and broader financial instruments.