Option finance

Option, the world capital markets, is a right which is based on an agreement to buy or sell a commodity, financial securities, or a foreign currency at a rate agreed upon price (set in advance) at any time within a period of three months contract. [1] option can be used to minimize risk and maximize profits at the same time with the leverage (leverage) is greater.

Purchasing options

Option to buy, or better known as the call option, is a right to buy an asset at a deal price (strike price) and within a certain time period agreed upon, either at the end of the maturity date or the grace period between the time prior to maturity. In this purchase option is called the 2 parties:

* Buyers purchasing options, or so-called call option buyer or too long call
* Sellers option to buy or is often called the call option seller or too short call

elling options

Option selling, or better known as the put option, is a right to sell an asset at a deal price (strike price) and within a certain time period agreed upon, either at the end of a maturity or period of time prior to maturity. At the sale option is also called the 2 parties:

* The buyer or selling an option called a put option buyer or too long a put
* Sellers option to buy or often called a put option seller or too short a put

This instrument is called an option because this agreement provides the "right" to the option holder to decide whether to implement or not (or so-called exercise) of options held, namely the right to buy (purchase option) or the right to sell (the option to sell) and the who sells the option or the so-called "publishing option" "must" to fulfill the right option from the option holders in accordance with the agreed terms. [2]