The second day of the settlement is ticket day, and is so called because on that day the broker prepares a ticket, giving the buyer's name and address upon it, which is handed over to the selling jobber. These tickets pass from hand to hand until the actual buyers or sellers are found, so that the transfer deed may be completed.

The last day of the account is called pay day, and, as it indicates, it means that the actual payment is made on this day, when securities are delivered to the buyer. In this connection 'buying in' and 'selling out' come in and need some explanation. The process known as 'buying in' is the means by which a buyer of stock enforces delivery on the part of the seller in carrying out his contract, and this is a risk, of course, which bears have to face. Ten days' grace is usually allowed, and if the shares are not delivered during that time, the broker then requisitions the official broker of the Stock Exchange to buy the stock. He accordingly bids for it, and all differences and expenses have to be met by the seller. If, on the other hand, the bull does not complete his purchase, the official broker sells his stock to the highest bidder, and the differences and expenses are paid by the bull. This is known, therefore, as the process of selling out.

Now, a great deal of speculation on the Stock Exchange is done by means of options, and now and then we hear of the market being affected by means of maturing options. The general public do not understand the meaning of this, or, at any rate, the average man has but a faint conception of it; and as this option dealing is a phase of speculation which he should set himself out to understand, for the knowledge will be of the greatest assistance to him, I will endeavour to explain the rudiments of it as clearly and as briefly as I can. I can but deal with the subject superficially in the present work, for if I treated it exhaustively and profoundly, and tried to elucidate all its intricacies and complexities, a separate book would be needed. Nor is a profound study of it absolutely essential for ordinary, speculative purposes. Of course, the more deeply we study this subject, as the more deeply we study any subject under the sun, so do we reap corresponding benefits, and to that extent have we greater advantages over the more ignorant of our competitors in life's unwearying contest. Therefore, for the present, we will glance at it but superficially, and should it give the reader an inclination to study it more deeply, he must seek other works where the subject is more elaborately treated.

We all of us know what the meaning of the word 'option' is, but in connection with Stock Exchange speculation, it means the right to buy or sell a certain amount of stocks or shares at a certain date at a specified price agreed upon when the bargain is struck, for which privilege, of course, a certain consideration is given. Thus, they are dealt in for the purpose of limiting a possible loss to the actual amount paid as option money, which is so much per share when dealing in shares, and so much per cent. when operating in stocks. There are single options and double options, the single option being either the 'put' or the 'call,' and the double option the 'put and call' together, the 'put of more,' or 'the call of more.' The word 'call' means the purchase of a right to buy on a given day a certain stock or share at a price fixed upon, and the 'put' the right to sell, whilst the 'put and call' together means that we purchase the right either to buy or sell this stock or these shares as we may desire. The 'call of more' means the right of calling a further like amount of stock or shares at the same price at which we have exercised the 'call,' and the 'put of more' the right of putting a further like amount at the same price. These are brief explanations of the above phrases, which I shall attempt further to elucidate. Now, suppose we want to buy a 'call' of East Rands, say at the end of September. There is every likelihood, we think, that by that time there will be a considerable rise in the price of the shares, especially as there is every hope, based on the Banishment Proclamation of Lord Kitchener which comes into effect on September 15 - that the war will come to an end in a few weeks. Nevertheless, there is a doubt about it. In spite of the straits to which the Boers have been reduced, the guerilla warfare may drag on for another six months, and in that event the price may stand still. We feel fairly certain, however, that the war will be over, and that the price of East Rands will go up, and therefore we buy the call of the share at, say, 7 1/2 at the end of September. If the price goes up, we shall exercise our option, and if it more than covers the price we paid for the option we, of course, make a profit. We may buy the shares at the price bargained for, and sell them in the open market at the higher price, the difference between the two prices, minus the fee we have paid for our option, being our profit.

If, however, we think that the price of East Rands is likely to fall, we then buy the right to 'put' them, say at 7 1/2. If the price declines to 7 or below that figure, we shall buy them in the market at the lower figure, and sell them to the dealer at the price bargained for, the difference, minus the cost of the option, being our profit.