# Cash-Secured Put

*Derivatives & Options — Finicade finance glossary*

A cash-secured put is selling a put while holding enough cash to buy the shares if assigned. It's the standard way to get paid for a limit order: you collect the premium, and either the stock stays above the strike and you keep it, or you buy at a strike you were happy with anyway. The risk is not the assignment but the scenario behind it — you buy a falling stock, and the premium is small consolation if it keeps falling.

**Also known as:** cash secured put, selling puts

**Related terms:** [Put Option](https://finicade.com/glossary/put-option), [Covered Call](https://finicade.com/glossary/covered-call), [Assignment](https://finicade.com/glossary/assignment), [Option Premium](https://finicade.com/glossary/premium), [The Wheel Strategy](https://finicade.com/glossary/the-wheel-strategy)

Source: https://finicade.com/glossary/cash-secured-put