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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

Series

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

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Futures Contract

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

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Offer

Understand the meaning and definition of Offer 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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Floor Broker (FB)

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

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GIM Membership (CBOT)

Understand the meaning and definition of GIM Membership (CBOT) in the context of stock market, trading, and investments.

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