Contract specifications[edit]. A financial option is a contract between two counterparties with the terms of the option Please click on a topic to read : Index Futures; Stock Futures; Index Options( Weekly, Monthly & European Options? An American-style option contract is one that may be exercised at any time prior to its expiration date. Currently, all equity options traded on 29 Jul 2014 contract terminology and specifications for stock and index options By – Ritesh Sethi (rsethi594@ Options Contracts An option gives the Contract Specifications for Stock Options. Trading in stock options commenced on the NSE from July 2001. These contracts are American style and are settled in Option Contract Specifications. The following terms are specified in an option contract. Option Type. The two types of stock options are puts and calls. Call options
Rules and Regulations | Contract specifications Equity derivatives: Introduction of Single Stock Futures and equity options; withdrawal of admission of Single
Contract Specifications for Stock Options. Trading in stock options commenced on the NSE from July 2001. These contracts are American style and are settled in Option Contract Specifications. The following terms are specified in an option contract. Option Type. The two types of stock options are puts and calls. Call options 2 May 2000 Share LEPOs (Low Exercise Price Option). Contract specifications are identical to equity options, with exception of the below. Tick size, 1 cent. Rules and Regulations | Contract specifications Equity derivatives: Introduction of Single Stock Futures and equity options; withdrawal of admission of Single Indicators · Stock Markets · Trading Psychology · Risk Management · Forex · Glossary Options are available on futures markets, on stock indexes, and on individual Options markets trade options contracts, with the smallest trading unit being the contract specifications for the ZG (Gold 100 Troy Ounce) options market Certain derivatives on securities (e.g., options on equity securities) are also Settlement: The act of fulfilling the delivery requirements of the futures contract. 27 Aug 2018 As with equity options, traders also need to understand the specifications for a given option on a futures contract as they will vary across
Glossary of Procurement Terms. arbitration. specifications, and terms and conditions of the proposed contract as well as the criteria by which the offers will be evaluated. The objectives of competitive bidding are to obtain goods or services at the lowest cost or best value through open and fair competition. option. A unilateral right
Stock options contracts are for 100 shares of the underlying stock - an exception would be when there are adjustments for stock splits or mergers. Options are traded on securities marketplaces Options Trading Terminology Call Option. A call option gives the buyer the right to buy 100 shares at a fixed price (strike price) before a specified date (expiration date). Likewise, the seller (writer) of a call option is obligated to sell the stock at the strike price if the option is exercised. Put Option Exercise or assignment of equity options results in acquisition or delivery of the underlying shares. Unit of Trade. Each standard contract represents 100 shares of the underlying equity. Corporate actions, such as rights offerings, stock dividends, and mergers can result in adjusted contracts representing something other than 100 shares of stock. Employee Stock Options. These are a form of stock option where employees are granted contracts based on the stock of the company they work for. They are generally used as a form of remuneration, bonus, or incentive to join a company. You can read more about these on the following page – Employee Stock Options. Trading stock options requires you to add a few new terms to your personal investing lexicon. Below are a few of the basic option terms that might be unfamiliar to rookies. For more information on
Depending on the corporate action, different contract terms (including strike price, deliverable, expiration date, multiplier etc.) could be adjusted. An adjusted option may cover more or less than the usual 100 shares. For example, after a 3-for-2 stock split, the adjusted option will represent 150 shares. For such options, the premium must be
Options Quick Facts - Terminology. Option Type The two types of option contracts are calls and puts. Option Class. All calls and puts on a given underlying security or index represent an "option class." In other words, all calls and puts on XYZ stock are one class of options, while all calls and puts on ZYX index are another class. Option Series. All options of a given type (calls or puts Strike Price — The pre-agreed price per share at which stock may be bought or sold under the terms of an option contract. Some people refer to the strike price as the “exercise price”. In-The-Money (ITM) — For call options, this means the stock price is above the strike price. So if a call has a strike price of $50 and the stock is Stock Option: A stock option is a privilege, sold by one party to another, that gives the buyer the right, but not the obligation, to buy or sell a stock at an agreed-upon price within a certain For NIFTY 50 weekly Options- Every Thursday of the week. In case the Thursday is a trading holiday, the previous trading day shall be the expiry/last trading day. All contracts shall expire at the normal market closing time on the expiry day or such other time as decided by Exchange. Option Contract Specifications. The following terms are specified in an option contract. Option Type. The two types of stock options are puts and calls. Call options confers the buyer the right to buy the underlying stock while put options give him the rights to sell them. Strike Price Options Trading Glossary of Terms. American Style Option: A contract that gives the holder the flexibility of choosing to exercise their option at any point between buying the contract and the contract expiring. More on American Stock Option: A type of option Stock options contracts are for 100 shares of the underlying stock - an exception would be when there are adjustments for stock splits or mergers. Options are traded on securities marketplaces
European Options? An American-style option contract is one that may be exercised at any time prior to its expiration date. Currently, all equity options traded on
2 May 2000 Share LEPOs (Low Exercise Price Option). Contract specifications are identical to equity options, with exception of the below. Tick size, 1 cent. Rules and Regulations | Contract specifications Equity derivatives: Introduction of Single Stock Futures and equity options; withdrawal of admission of Single Indicators · Stock Markets · Trading Psychology · Risk Management · Forex · Glossary Options are available on futures markets, on stock indexes, and on individual Options markets trade options contracts, with the smallest trading unit being the contract specifications for the ZG (Gold 100 Troy Ounce) options market Certain derivatives on securities (e.g., options on equity securities) are also Settlement: The act of fulfilling the delivery requirements of the futures contract.