Exchange-traded options

Options exchange-traded option exchange-traded an option traded on a regulated exchange where the terms of each option are standardized by the exchange.

The contract is standardized so that underlying assetquantity, expiration date and strike price are known in advance. Options options are not traded on exchanges and allow for the customization of the terms of the option contract. Exchange-traded options are also known as "listed options".

The benefits to exchange-traded options are the liquidity of the options, standardized contracts, quick access to prices and the use of clearing houses by exchanges.

The options of clearing houses guarantees the option contract will be fulfilled, while with over-the-counter options the ability to exercise the contract is dependent on the ability options the other party to meet the options. Dictionary Term Of The Day. The degree to which an asset or security can be quickly bought or sold in the market Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. What is an 'Exchange-Traded Option' An exchange-traded option is exchange-traded option traded on a regulated exchange exchange-traded the terms of each option are standardized by the exchange.

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