Strike Price: What It Means in Options Trading (The Pre-Decided Price of the Option) If you’re learning options trading, you’ll see one term everywhere: strike price. Whether you’re looking at a call option or a…
Forward Contract: A Customized OTC Agreement for a Future Trade A forward contract is a private, customized agreement between two parties to buy or sell an asset at a specific future date for a price…
Options Contract: The Right (Not the Obligation) to Buy or Sell an Asset An options contract is a financial agreement that gives the buyer the right—but not the obligation—to buy or sell an asset at…
Futures Contract: An Agreement to Buy or Sell at a Future Date at a Fixed Price A futures contract is a standardized financial agreement to buy or sell an asset at a predetermined price on…
