Escrow Receipt

A bank guarantee that an option writer has the underlying security on deposit and that the underlying security is readily available for delivery if the option is exercised.


The use of escrow accounts and receipts provides further evidence and security that the securities are available to complete the transaction.



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

Cover

Escrow

Escrow Agreement

Exercise

Option

Security

Underlying

Writer

Word Search:

Categories