Options Glossary

Glossary: Options Trading

Last Updated: February 24, 2017


Options Trading

What Does Options Trading Mean in Options Trading?

Options trading is the activity of buy and selling standardized equity options contracts. Options trading is unique to stock trading in two main ways. First, options trading is a derivative. This means that the value of the contract derives its value from how the underlying asset's price. Second, options contracts have limited duration, unlike stock where you may purchase the security and hold it for as long as the company is traded.
Many terms that are specific to Options Trading and are not observed in stock trading will be organized under this generic term.

Related Options Trading Terms

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