Option (Investments & Retirement) - Definition, Examples, Advice | Bolder Money

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Product 1:1 Coaching Our Coaches Our Story

Product 1:1 Coaching Our Coaches Our Story

Definition

A financial contract that gives you the right, but not the obligation, to buy or sell an asset at a specified price before a certain date.

What to consider

Understand the terms of an options contract before trading.
Consider the risks versus the potential rewards.
Review market conditions to time your trades effectively.

Real world scenarios

During a trading class, Zoe learned how an option provided her the right, but not the obligation, to buy shares at a set price before the expiration date.

Related terms

Investments & Retirement

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