The Options Market Place - Introduction

Listed options trade on exchanges in a manner that is similar to the trading in listed stocks. The exchanges maintain orderly markets for listed options and provide investors with a marketplace to buy and sell options. Because options are derivative securities and there are different types, classes and series of options, the options market has some unique trading features.



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RELATED TERMS
  1. Option Class

    The set of all the call options or all the put options for a ...
  2. Optionable Stock

    A stock that has options trading on a market exchange. Not all ...
  3. Listed Option

    An option that is sold on a registered exchange, such as the ...
  4. Exchange-Traded Option

    An option traded on a regulated exchange where the terms of each ...
  5. Back Fee

    A payment made to the writer of a compound option in the case ...
  6. European Option

    An option that can only be exercised at the end of its life, ...
RELATED FAQS
  1. What's the difference between a regular option and an exotic option?

    Before learning about exotic options, you should have a fairly good understanding of regular options. Both types of options ... Read Answer >>
  2. Do options make more sense during bull or bear markets?

    Understand how options may be used in both bullish and bearish markets, and learn the basics of options pricing and certain ... Read Answer >>
  3. Is it possible to trade forex options?

    Yes. Options are available for trading in almost every type of investment that trades in a market. Most investors are familiar ... Read Answer >>
  4. Do you have to be an expert investor to trade put options?

    Learn about investing in put options and the associated risks. Explore how options can provide risk, which is precisely defined ... Read Answer >>
  5. Are there any risks involved in trading put options through a traditional broker?

    Explore put option trading and different put option strategies. Learn the difference between traditional, online and direct ... Read Answer >>
  6. Where can I purchase options?

    In the United States, all options contracts go through one of several options exchanges. An investor must have an account ... Read Answer >>
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