American Option

Trading Basics

American Option

An option that can get exercised at any time during its life.

European options can only be exercised at the end.

Other Trading Basics

Arbirtage

Simultaneously buying and selling a security at two different prices in two different markets, with the aim of making a profit without the risk of prices fluctuating.

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Capital

The economic resource used to buy assets, normally with the view to provide a product or service.

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