Trading options on the derivatives markets gives traders the right to buy (CALL) or sell (PUT) an underlying
asset at a specified price, on or before a certain date with no obligations this being the main difference between options and futures trading.
A forward contract is a customized contract between two parties to buy or sell
an asset at a specified price on a future date.
By the above, a call option is «the right but not the obligation to force the liable to buy a specified
asset at a specified price with a specified expiration for that right».
For equities, this means «to have the right but not the obligation to force the liable to buy / sell a specified
asset at a specified price with a specified expiration for that right» for a call / put, respectively.
By the definitions above and with a narrower scope applied to equities & indexes, to be «long» the call means «to have the right but not the obligation to force the liable to buy a specified
asset at a specified price with a specified expiration for that right» while to be «short» the call means «to have the obligation to be forced to sell a specified
asset at a specified price with a specified expiration for that right».
Put Options and Example Put options give the holder the right to sell an underlying
asset at a specified price (the strike price).
Call Options and Example Call options provide the holder the right (but not the obligation) to purchase an underlying
asset at a specified price (the strike price), for a certain period of time.
Put Options Put options give the holder the right to sell an underlying
asset at a specified price (the strike price).
An option contract that gives you the right to sell (but does not lock you into selling) the underlying
asset at a specified price, at or before a certain time in the future.
It requires the delivery of the underlying
asset at a specified price and specified future date.
For those out of the loop, here's what you need to know, from this handy explainer over on Business Insider: a future allows two parties to exchange
an asset at a specified price at agreed - upon date in the future.
Not exact matches
Hi Nick, For those who don't know what a put is; An option contract giving the owner the right, but not the obligation, to sell a
specified amount of an underlying
asset at a set
price within a
specified time.
Binary options trading hinges on a simple question — will the underlying
asset be above or below a certain
price at a
specified time?
The buyer has the right, but not the obligation, to buy (or sell) an
asset,
at a set
price, on or before a
specified future date.
The local spot
price represents the prevailing
price for the underlying
asset, while the
price listed in a futures contract refers to a rate that would be given
at a
specified point in the future.
Call Option is a derivative contract between two parties wherein the buyer of the call option has the right to be able to exercise his option and buy a particular
asset during a
specified period of time,
at a
specified price.
Binary options are contracts that give a trader the right but they are not obligated to buy an underlying
asset at an agreed
price and
specified period of time.
A put option is a contract that gives the owner of the option the right to sell a
specified amount of the
asset underlying the option
at a
specified price within a
specified time.
A Futures contract is a contract between two parties, in which they agree to exchange an
asset in the future
at a
specified price and appointed date.