By Leanna Kelly If you’re interested in trading derivatives, you’ll likely find yourself wondering about the difference between American vs. European options. No, they’re not regionally exclusive derivatives. You can buy both no matter where you invest, in U.S. markets or overseas. The difference comes in how they’re exercised and what power you have in buying them.
It’s important for investors to understand the style of option they’re trading. Not only does it affect how you’ll exercise the option, it also has bearing on the risk you assume when the time comes to exercise. Knowing your optionable rights gives you foresight into how to …read more
