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Published On: Tue, Mar 12th, 2013

Strike Price

The strike price is a term that is typically associated with stock and index options trading and is quite simply the price at which a contract can be exercised.

With regard to options, this will be the price that the option holder can buy or sell the underlying security at when it expires.  Strike prices are fixed when a contract is bought or sold and play a key role in determining the premium the client will be charged by the brokerage.

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.