Stock Options Made Simple: A Beginner’s Walkthrough Of Trading Basics

Finance1 years ago

Source: Stock Options Made Simple: A Beginner’s Walkthrough Of Trading Basics

Purchasing and selling option contracts is a part of stock options trading. These contracts, which are linked to an underlying asset, give investors the option to trade a specific volume of that asset on a specific date at a specific price. The amount you pay up front for any stock option is called the premium, and the pre-negotiated price is known as the strike/exercise price.

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