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

Suspension

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

MORE
Federal Funds Rate

Understand the meaning and definition of Federal Funds Rate in the context of stock market, trading, and investments.

MORE
Floor Broker (FB)

Understand the meaning and definition of Floor Broker (FB) in the context of stock market, trading, and investments.

MORE
Time-Stamp

Understand the meaning and definition of Time-Stamp in the context of stock market, trading, and investments.

MORE
Federal Reserve System

Understand the meaning and definition of Federal Reserve System in the context of stock market, trading, and investments.

MORE
Open Free Demat Account!

Join our 3.5 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3.5 Cr+ happy customers