Options

Options are a type of derivative contract where the future buying and selling price is determined by the price of another security.

A call option is an agreement in which the buyer has the right to buy an asset at a set price on a set date and the seller is obligated to honour the agreement.

A put option is an agreement in which the buyer has the right but not the obligation to sell an asset at the agreed price and the seller again is obligated to honor the terms of the contractual agreement.

Please visit the Tools section of our web site to learn more about the risks and rewards of trading options. We have provided a list of leading Australian brokerage houses for you to find a local broker that can help you with your stock option inquiries.

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