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When placing an options trade, what is the activation price?

When placing an options trade, what is the activation price?

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Hello, this is a great question and I can help. Options trading is an excellent way to manage risk and the activation price is simply the price you are willing to enter into an order using a stop limit, stop on quote or limit trade. Not a market order. This activates the order and the broker/dealer or market maker will begin actively searching for a buyer in the secondary market. You may cancel the order anytime before it is executed, edit the order or change the order price.