what is ce and pe in stock market

what is ce and pe in stock market

1 year ago 41
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CE and PE are terms used in options trading in the stock market. They refer to Call Option and Put Option, respectively. Here is a brief explanation of what they mean:

  • CE (Call Option): This is a type of investment contract that gives the holder the right, but not the obligation, to buy a stock, product, bond, or another asset at a specific price within a predetermined window of time. CE is used by investors who expect the underlying assets price to rise.

  • PE (Put Option): This is a type of investment contract that gives the holder the right, but not the obligation, to sell a particular security at a specific price within a given timeframe. PE is used by investors or traders who expect the underlying assets price to decline.

It is important to note that options trading is a high-risk investment strategy that can lead to significant losses. Before venturing into the world of options trading, it is crucial to have a thorough understanding of terms like CE and PE.

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