Traders Tools
Glossary Search
Search the glossary by using this form:
Keep yourself updated with Our Free eNewsletters!
Futures Terms |
| Browse our glossary of terms by using the Alphabet below. You may also search the glossary by using the search box in the right column. | |
| Types of options transactions | A) Opening purchase transaction — A transaction in which an individual purchases an option and thereby obtains a long option position. B) Opening sale transaction - A transaction in which an individual grants an option and thereby obtains a short option position. C) Closing purchase transaction—A transaction in which an individual with a short option position liquidates the position. This is accomplished by a closing purchase transaction for an option of the same series as the option previously granted. Such a transaction may be referred to as an offset transaction. D) Closing sale transaction—A transaction in which an individual with a long option position liquidates the position. This is accomplished by a closing sale transaction for an option of the same series as the option previously purchased. Such a transaction may be referred to as an offset transaction. |