Glossary

Option

This is a contract between two investors. It states that one of them has provided the other the right to buy or sell a particular asset at a specified time period at a pre-determined price. There are two types of options: "Call option" - a contract for the purchase, which gives the holder the right to buy an underlying asset. "Put option" is a contract for sale. Its owner has the right to sell the underlying asset. Find out more by reading “Getting started in options” by Michael Thomsett.

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