Options Basics
Start your options education journey with fundamental concepts
Educational Content Only: This material is designed for educational purposes only. Options trading involves substantial risk and is not suitable for all investors.
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What You'll Learn
- Fundamental options concepts and terminology
- Difference between calls and puts
- How options pricing works
- Basic risk and reward concepts
Key Concepts
Options Contract
A financial derivative that represents a contract sold by one party to another.
Premium
The price paid to acquire an option contract.
Exercise
The act of using your right to buy or sell the underlying asset.