option exchange

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Option Exchange

A securities exchange that primarily or exclusively trades option contracts. Often, options are traded on an exchange along with futures and other derivatives. However, some exchanges, like the CBOE, specialize in option transactions.

option exchange

An organized securities exchange, the primary purpose of which is to provide a location and framework for trading standardized option contracts. An option exchange handles its trading much as a stock exchange handles its trading in stocks and bonds. Until 1973, with the opening of the Chicago Board Options Exchange, all options were traded through a limited number of firms specializing in them. Most of the options traded at that time were so unique that it was difficult or impossible to close a position in one before its expiration.
References in periodicals archive ?
Utilizing proven techniques for trade execution, MRA enables clients to consistently achieve efficient pricing in the equity and option markets.
Walks you through the stock and option markets from a professional's perspective, but uses plain language and simple analogies
The increasing use of European equity and index options by our customers, primarily proprietary traders and hedge funds, has underscored the need for high-quality implied volatility and pricing data for the European equity and option markets," said David Hait, President of OptionMetrics.
Van der Moolen has been looking to adjust its position and strategy in the US option markets since 2002, by reducing personnel, capital employed and the number of option series for which its subsidiaries act as specialist.