OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:American-Style Option'

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What is American-Style Option in Options Trading ?

American-Style Option
An American-Style Option is a standard option contract which can be exercised by the option holder or option buyer at any time before the expiration date of the contract. Most of the exchange options are American-Style. Due to the increased flexibility to the buyer and the increased risk to the seller, the value of the option is higher compared to European-Style options. European-Style Options can only be exercised at the expiry date.

Broader Term

  • Expiration

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