automatic exercise

Definition of "automatic exercise"
  1. A feature in an options contract that enforces its use automatically at expiration if profitable by a certain extent, unless different directions are given
How to use "automatic exercise" in a sentence
  1. The broker used automatic exercise to fine-tune the investment strategy.
  2. The option was pushed to automatic exercise due to its substantial profitability.
  3. He regretted not setting automatic exercise for his options when he saw the market spike.

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