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

Alpha

This is a measure of price performance vs a benchmark.

If a trader makes 10% per annum and the index makes 7% the trader has an alpha of 3%.

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ASX 200

A term used for the index of the top 200 shares on the Australian Securities Exchange, also AUS 200.

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