Trading & Markets

Option

Also: Options

A contract giving the right, but not the obligation, to buy (a call) or sell (a put) an asset at a set price by a certain date. Buyers can lose at most what they paid; sellers can face far larger losses.

General education, not investment, legal or tax advice. Markets and regulation change quickly: where a definition depends on current law or on a recent event, check the latest coverage before relying on it.