Strike price

Strike price is the predefined price at which a derivatives holder has the right to exercise their option.

Strike price is used in derivatives trading.

Example

Irrespective of the spot price of an underlying security, say, a stock, a trader with a call option on the shares with a strike price of Rs 150 will have the right to buy the shares (specific volume as well) at Rs 150 during or at the end of the contract.