Investor Glossary-option exchangeInvestor Glossary-option exchangeInvestor Glossary-option exchangeInvestor Glossary-option exchangeInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Option Exchange

The HTML to link to this page
 

An option exchange is an exchange that trades option contracts. The option exchange may also trade other securities, such as stocks and futures. The option exchange has complete discretion to set all option contract specifications, such as contract size, exercise date, and strike price. The option exchange may also set rules for the maximum allowable open interest. The option exchange must determine important specifics of the settlement process. For example, early exercise of an American style option by one option holder out of many requires that one option writer be selected by the option exchange to deliver the underlying asset. An option exchange may or may not have fully electronic trading. An example of an options exchange is the Chicago Board Options Exchange, or CBOE.



Rate this option exchange definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: average price per share, labor relations, APR, in escrow, liquidity ratio, retained earnings, cancelled check, required rate of return, quality assurance, annual return, stock market close, VIX, ex-dividend date, FICO score, implied volatility, limit order, stock split, 1031 exchange, wholly-owned subsidiary, EBITDA, option premium, real GDP, ex-dividend, reverse mortgage, inflation, deferred tax, class C shares, dividends payable, command economy, debt service coverage, irrevocable trust, margin rate, minority interest, balance sheet, per diem, FTSE, 1035 exchange, current ratio, risk management, diluted share, 144a, phantom income, LIBOR, open position, Zero Cost Collar, 401a, covered put, deferred revenue, Key Rate Duration


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use