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Early Exercise

What does it mean?
When an option or other security is exercised prior to its maturity date.

In Other Words...
European options don't allow early exercise, whereas American-style options do.

Related Links
Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them.

Related Terms
American Option | European Option | Maturity Date

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Image Financial LLC is not a registered broker-dealer, but rather works in coordination with fully licensed broker-dealers, SIPC-insured clearing firms, and private trading firms to provide licensed and non-licensed clients with access to career trading programs and direct access trading capabilities.  Our firm and our network affiliates strongly recommend that all clients fully read and acknowledge all SEC risk disclosure statements available on our site and our affiliate broker-dealer websites prior to engaging in any live trading activity, and acquire a solid understanding of the risks inherent in active "day" trading.