Exchange-Traded Option
(redirected from Exchange Traded Option)Also found in: Acronyms.
Exchange-Traded Option
An option contract that is traded on an exchange. An exchange-traded option is subject to all of the exchange's applicable regulations; this reduces uncertainly for the investor because exchange-traded options are standardized contracts. They contrast with over-the-counter options, the provisions of which may be customized.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved