An Option is a contract that gives the right, but not the obligation, to buy (a call) or sell (a put) an asset at a set strike price before it expires. Options let traders speculate, hedge or generate income with clearly defined risk.
How traders trade it
- Calls profit from a rise, puts from a fall.
- Buyers risk only the premium they paid.
- Priced by strike, time to expiry and volatility (the Greeks).
See it in dtcharts
Find and chart symbols across forex, crypto, stocks and more in the dtcharts terminal — with live data and 100+ indicators.
Related terms
Related: Leverage · Futures · Risk-reward ratio