



#DAY TRADING FOR BEGINNERS FREE#
If you feel a term and its definition or even an acronym needs to be included in our below glossary, please feel free to drop a comment! Thanks for your help and participation! AĪbandon: The act of not exercising or selling an option before its expirationĪsk: The price of a stock or option at which a seller is offering to sell a security.Īssigned: To have received notification of an assignment on short options by The Options Clearing Corporation through a broker.Īssignment: When the seller of an option receives an exercise notice that obligates them to sell (in the case of a call) or purchase (in the case of a put) the underlying stock at the option’s strike price.ĪTM (At The Money): An option is at the money when the price of the asset is at or near the option’s strike price.Īutomated Exercise: A procedure the OCC, Options Clearing Corporation, uses to exercise in the money options at expiration protecting the owner of the option from losing the intrinsic value due to the owner’s failure to exercise unless otherwise instructed not to do so by the owner. This website will also be a beneficial resource if you are looking to learn about trading stocks/options. Also, Investopedia is great for learning about trading terminology. Good resources for terms and their explanation beyond this comprehensive list exist with various brokers such as TD Ameritrade. This list may not be “complete” since it is meant for a novice trader rather than more experienced traders and will be updated as needed. Don’t worry! You will get used to all the lingo quickly once you start studying and the information will be second nature. The day trading glossary may seem long but necessary for day traders learning to be one of the many market participants. Below is a glossary of basic trading terminology.
