Glossary › option

Trading glossary · advanced

option

A ticket that gives you the right, but not the duty, to buy or sell something at a set price before a set date.

The fuller meaning

A contract giving its buyer the right, not the obligation, to buy (call) or sell (put) the underlying at the strike price, up to or at expiry depending on exercise style. The buyer pays a premium; the seller takes on the obligation. In India options trade with futures in the F&O segment.

option, also called options.

Related words

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