Angel One - Share Market Trading and Stock Broking
Skip to main content
Options and Futures

Option Premium

An option's price is determined by the amount paid by the buyer and received by the seller. This payment grants the buyer certain rights related to the option. These rights include the ability to buy or sell an underlying asset at a predetermined price, known as the strike price. The price of an option is influenced by various factors, such as the current market value of the underlying asset, the time remaining until the option expires, and the volatility of the market. Understanding the price of an option is crucial in the world of finance and investing.

Related terms

Liquidate

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

MORE
Nearby

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

MORE
Discount Rate

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

MORE
Opening Sale

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

MORE
Vertical Spread

Understand the meaning and definition of Vertical Spread 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 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store