Strike price and expiry

The strike price is where an option pays; expiry is when a contract ends. Expiry is what ties a future to the real price, which is why the gap goes to zero on expiry day. A perpetual has no expiry, so something else must pull its price back, and Module 3 asks what is left when expiry is removed.

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In the help centreSee how leverage and margin work on Mochatrade
  • Cost of carryCost of carry is what it costs to hold a position over time: storage, insurance and interest, minus any income. It is…
  • Futures contractA futures contract is an exchange-traded agreement to buy or sell at a set price on a set date, settled daily against…
  • Options contractAn options contract gives the buyer the right, not the obligation, to buy (call) or sell (put) at a strike before…
  • Call optionA call option is the right to buy at the strike before expiry. Strike 24,200 and premium 80 means profit only above…
  • Perpetual futuresPerpetual futures are contracts that track an asset's price with no expiry date. Expiry is what pulls a normal future…
  • Spot price vs futures priceThe spot price is for delivery now; the futures price is for delivery later, and the gap is the cost of carry, which…

Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.

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