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What is Option?

A stock or cryptocurrency option is a contract that provides you the choice to buy or sell an asset at a certain price without putting you under any obligation to do so. European options can only be exercised on a certain expiration date, whereas American options grant that right during a specific duration.

Investors purchase and sell contracts on an open market through the use of options trading. This kind of trading is essentially a means to lower risk because there is no obligation to buy or sell.


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