Options Trading
/ˈɒpʃənz ˈtreɪdɪŋ/
Definitions
- (n.) The act or practice of buying and selling options contracts, which grant the right but not the obligation to buy or sell an underlying asset at a specified price before a certain date.
Options trading allows investors to hedge risks or speculate on market movements legally.
Forms
- options trading
Related terms
See also
Commentary
Options trading involves specific regulatory compliance and risk disclosures; precise contract language is crucial to define rights and obligations.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.