View more search results. Puts are a variety of option that give the purchaser the right, but not the obligation, to sell an asset at a certain price before the option expires. They differ from call options , which give the purchaser the right but once again, not the obligation to buy an asset at a certain price before the option expires.
Put and call options will stipulate the amount of the asset being traded at the outset, alongside the strike price the price at which the asset can be sold and the expiry the length of time the option will be available for. The purchaser of a put option pays a premium to the writer the term given for the seller to buy the option. If the purchaser does not exercise the option by selling the asset before the option expires, it will cancel and the writer will take the premium as profit.
As such, the writer of a call option is expecting that the asset they have agreed to sell will not drop in price beyond the strike price. The buyer is expecting that it will. Spread bets and CFDs are leveraged products and can result in losses that exceed deposits. Please ensure you fully understand the risks and take care to manage your exposure. IG Index supports responsible gambling, for information and advice please visit www.
Log in Create account. Risk management Spread betting: Education Glossary of trading terms. All trading involves risk. Losses can exceed deposits. Put definition All trading involves risk.
How put options work The purchaser of a put option pays a premium to the writer the term given for the seller to buy the option. Visit our options trading section Find out more about options trading with IG. Contact us We're here 24hrs a day from 8am Saturday to 10pm Friday. Markets Forex Indices Shares Other markets. Trading platforms Web platform Trading apps Advanced platforms Compare features. IG analysis The week ahead Market news. Contact us New client:More...