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Opening Transaction
What does it mean?
The initial or primary transaction of an options contract. Rights for a buyer are created as is the obligation of the seller.
In Other Words...
For example, by writing a call option, an investor is making the opening transaction--this person has created a right for the buyer to exercise the option.
Related Links
Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them.
Related Terms
Assignment | Call Option | Exercise | Option | Options Contract | Put Option
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