OptionAutomator Options Trading Glossary:

Definition, Examples & Resources:Premium'

« Back to the Options Trading Glossary

What is Premium in Options Trading ?

Premium
The premium is the price of an option contract. This amount must be paid to the seller (option writer) when the rights under the option contract are exercised. The premium expires at a specific expiry date of an option contract. It consists of an intrinsic value and time value.




Share
>
Thanks for sharing. Connect with us on social media for additional content!

Send this to a friend

Hi, this may be interesting you: Premium! This is the link: https://www.optionautomator.com/Options-Trading-Glossary/premium/