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Day-Trading |
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Technical Analysis - Financial Glossary
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Time Value | ||||||||||||||
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In options, the value of the premium is based on the amount of time left before the contract expires and the volatility of the underlying contract. Time value represents that portion of the premium in excess of intrinsic value. Time value diminishes as the expiration of the option draws near and/or if the underlying contract's price development becomes less volatile | ||||||||||||||
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