European and American Style of Option Tradings..!


Generaly Options Trading are two types. One is American style option.  Other is  European style option.
An American kind of option is the one which can be exercised by the buyer at any time, till the expiration date, that is anytime between the day of purchase of the option & the day of its expiry.
The European style option is the one which can be exercised by the buyer only on the expiration day and and not any time before that.
In India, options on Sensex Index are European style. Options on individual are stocks American style.
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