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.


In options trading , what does moving averages mean ?


What does Assignment in Options mean ?


What is the difference between Options and Futures ?


What are the elements that can change the value of the premium of an Options ?


What are various pricing models for Options ?


How can we calculate the premium paid on Options ?


What does Option Greeks mean and how it is used in Option trading ?


In Options trading ,What is selling \ writing or shorting means ?


How to settle an option that I have bought and paid the premium ?


Do Stock buyers and Options buyers have the same rights ?


In India what is the cycle of contract for Options ?


How the price of an Option is affected by the probability of price movement ?


How are trading stocks different from options ?


What does volume and open interest mean in options ?


What does options market mean ?


What does nifty options and futures mean?


Is it possible to trade in US options from India ?


What are options trading timing in India ?


What is the expiry date of NSE ?


Can I buy or sell of Options in pre - market trading session ?