Designed to help you navigate the often complex terminology of stock options trading. With clear definitions and explanations, our glossary serves as a valuable reference tool for traders of all levels. Enhance your understanding of key concepts, strategies, and jargon, empowering you to make informed decisions and trade with confidence. Unravel the language of trading with our Glossary Page and boost your options trading expertise today!
a financial derivative that represents a contract sold by one party (the option writer) to another party (the option holder). The contract gives the option holder the right, but not the obligation, to buy (in the case of a call option) or sell (in the case of a put option) an underlying asset at a specified price (the strike price) on or before a specified date (the expiration date).