Glossary‎ > ‎

Option

An Option is a contract which gives the buyer the right, but not the obligation, to buy or sell an instrument at a specific price on a predefined date. Options are derivatives of financial securities, commodities, bonds or currencies.
Most of the time Traders use options to speculate.
There are two types of options: Call Option and Put Option.
Call Option is profiting when the price moves up.
Put Option is profiting when the price moves down.
Options have a limited life span and they have an empire date.


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