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Options and Futures

Holder

An investor who holds the right to buy or sell an underlying asset at a predetermined price is known as the option holder. In the world of finance, this party is also referred to as the "long" position. Additionally, when engaging in futures contracts, traders are required to provide an initial performance bond, or initial margin. This serves as a form of collateral, ensuring the proper execution of the contract and mitigating risk.

Related terms

Nearby (Delivery) Month

Understand the meaning and definition of Nearby (Delivery) Month in the context of stock market, trading, and investments.

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Underlying security

Understand the meaning and definition of Underlying security in the context of stock market, trading, and investments.

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Underlying Futures Contract

Understand the meaning and definition of Underlying Futures Contract in the context of stock market, trading, and investments.

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Variable Limit

Understand the meaning and definition of Variable Limit in the context of stock market, trading, and investments.

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Discount Method

Understand the meaning and definition of Discount Method in the context of stock market, trading, and investments.

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Supply, Law of

Understand the meaning and definition of Supply, Law of in the context of stock market, trading, and investments.

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