In Canada and the U.S., most stock, bond and currency trading now is done through computer terminals in investment house trading rooms, but derivatives trades are mainly done on trading floors. Usually orders to buy shares at a specified price and generally a cancellation date is set in advance. A right to buy or sell a specific security at a fixed price, called the strike price or exercise price. The holder of an option has no obligation to complete the purchase or sale. Consequently, the risk in buying an option is limited to the purchase price.
Options are available on many kinds of investments in Canada and in foreign markets.
Elaborate security codes and pre-authorized credit limits are part of the rules for the new digital world of securities trading. Finding the right mix involves an estimate of the optimum growth rate for the economy. The difference between the optimum rate and the estimated actual rate is the output gap. CanWest Global Communications Corp. All rights reserved. Optimized for browser versions 4.0 and higher.