Glossary › exercise

Trading glossary · advanced

exercise

Using the right your buy-or-sell ticket gives you, to actually buy or sell at the set price.

The fuller meaning

The option holder's act of using the contract's right, to buy for a call or sell for a put, at the strike. Depending on the exercise style this is allowed up to expiry or only at expiry; the seller who took on the obligation must then deliver or pay.

exercise.

Related words

at the money · backtest · backwardation · basis · call option · contango · data snooping · delta · edge · entry trigger