Option

A contract granting the right, but not the obligation, to buy/sell.

Detailed Definition

Options are financial derivatives that give buyers the right, but not the obligation, to buy or sell an underlying asset at an agreed-upon price and date.

Related in General Trading

Market Maker

An entity providing liquidity by offering both buy and sell quotes.

Mutual Fund

A pool of funds collected from many investors.

Day Trading

Buying and selling assets within the same trading day.