Duration

The term “duration” has several common uses related to trading. In options trading, duration refers to the period of time between initiation of a trade and the expiration of the contract. At tastytrade, duration is often referenced as “days-to-expiration,” or DTE. In bond trading, duration may refer to the change in value for a fixed income security given a 1% move in interest rates. Click here to learn more.

This is a definition, not a recommendation. Options carry risk and can expire worthless. See how the desk actually trades at TrueTrader.