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  1. Home
  2. /Glossary
  3. /Options
Back to Glossary
trading

Options

Contracts giving the right, but not obligation, to buy (call) or sell (put) an asset at a set price before expiration.

Definition

Contracts giving the right, but not obligation, to buy (call) or sell (put) an asset at a set price before expiration. Options let traders bet on direction, hedge positions, or earn premium. They're more complex than spot trading.

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Related Terms

Derivatives

Financial contracts whose value is based on an underlying asset.

Futures

Contracts to buy or sell an asset at a specific price on a future date.

Accumulation Phase

A period when smart money quietly buys up an asset before a major price move.

Annualized Return

The average yearly return on an investment, calculated to account for compounding.

Arbitrage

Profiting from price differences of the same asset across different markets.

Ask Price

The lowest price a seller is willing to accept for an asset.

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