CFDs on Gold (US$ / OZ)
Education

Part 11 Trading Master Class

32
What Is an Option?

An option is a derivative contract whose value is derived from an underlying asset such as:

Stocks

Indices

Commodities

Currencies

Each option contract is defined by:

Underlying asset

Strike price

Expiry date

Option premium

There are two main types of options:

Call Option

Put Option

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