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Options and Futures

Financial Instrument

In the world of finance, there exist two fundamental types of financial instruments. The first is known as a debt instrument, which essentially functions as a loan with an agreed-upon repayment plan and interest rate. The second type is an equity security, which represents ownership in a company in the form of shares or stocks. It is important to understand the differences between these two types of instruments in order to make informed financial decisions.

Related terms

Settlement Price

Understand the meaning and definition of Settlement Price in the context of stock market, trading, and investments.

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Horizontal Spread

Understand the meaning and definition of Horizontal Spread in the context of stock market, trading, and investments.

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Forex Market

Understand the meaning and definition of Forex Market in the context of stock market, trading, and investments.

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Open Outcry

Understand the meaning and definition of Open Outcry in the context of stock market, trading, and investments.

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Uncovered call writing

Understand the meaning and definition of Uncovered call writing in the context of stock market, trading, and investments.

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Strike Price

Understand the meaning and definition of Strike Price in the context of stock market, trading, and investments.

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