Options are a derivative of ordinary stocks and shares that can be traded on the open market. If you buy an option for a particular share you are buying the right (but not the obligation) to purchase or sell a block of that share (typically 100 shares) at some time before or on a specified expiry date, but at a price agreed upon now. Options are short term instruments and are geared in nature.

There are two types of option; a call option used for when you wish to buy a position in a stock, and a put option used for when you wish to sell a position in a stock.

What to do if you need more help

If you need more help with your specific commercial loan, mortgage or insurance requirement please speak to a professional financial adviser.

We hope you found this information useful.

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