Basics of Options Trading FAQs

How to know the difference between American style options and European style option ?

American-style options are contracts that can be bought/sold or exercised anytime before the expiry date. Individual stocks can be purchased or sold at any time.

European-style option contracts cannot be bought/sold or exercised after the expiration date. All Index options can only be exercised or bought/sold on the expiration date.

The Option contract's nomenclature can be used to quickly determine if it is American or European. It is CALL European-style option if CE is found in the contract title. Similar to the above, CA in a contract name signifies CALL American style. PE is PUT European style. PA is PUT American style.


What is the work of Options ?


How many types of Options ?


What is strike price of option ?


When does Options expire?


What is the process for trading options ?


How futures and Options are different ?


How Nifty can be traded ?


What will happen when an option expires out of money ?


Do I have to pay margin in Options ?


How can the Options contracts be settled ?


What do you mean by Covered Options ?


When do you mean by Naked Options ?


What does American Options refers to ?


What does European option mean? ?


In Options , What is the meaning of At-The-Money , Out-of-the-Money (OTM) and In-The-Money ?


How to take decision on either to buy /sell call Option or put Option ?


Is it possible to trade on option of any stock or index?


How Square off and exercise an Option is different ?


What does intrinsic value of an option mean and how to calculate intrinsic value of an option ?


What does time value of an Option mean ?