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Options and Futures

Opening Sale

A seller who aims to establish or augment a short position in a specific series of options carries out what is known as a short transaction. This involves selling a security that the seller does not currently own, with the expectation of buying it back at a lower price in the future. Such a transaction can be used to hedge against market risks or to capitalize on anticipated market movements.

Related terms

Spot

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

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Stop Order (Stop)

Understand the meaning and definition of Stop Order (Stop) in the context of stock market, trading, and investments.

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Hedger

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

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COM Membership

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

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Option Premium

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

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Series

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

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