Chicago Board Options Exchange - CBOE


DEFINITION of 'Chicago Board Options Exchange - CBOE'

Founded in 1973, the CBOE is an exchange that focuses on options contracts for individual equities, indexes and interest rates. The CBOE is the world's largest options market. It captures a majority of the options traded. It is also a market leader in developing new financial products and technological innovation, particularly with electronic trading.

The CBOE is also referred to as the "See-bo".

BREAKING DOWN 'Chicago Board Options Exchange - CBOE'

On the first day of trading in 1973, 911 contracts traded hands on 16 stocks. Today, the CBOE's average daily volume consistently exceeds one million contracts per day.

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  1. What is the history of binary options?

    Binary options trading is option trading for which there are two possible results. A trader purchases an option and at the ... Read Full Answer >>
  2. Why is the Chicago Board Options Exchange important?

    The Chicago Board Options Exchange (CBOE) was the very first exchange to offer standardized exchange-traded options on stocks. ... Read Full Answer >>
  3. Where can traders and investors find most recent Put-Call indicator ratios and charts?

    There are a number of information sources that provide up-to-date information on the put-call ratio. Additionally, traders ... Read Full Answer >>
  4. What is the CBOE Volatility Index? (VIX)

    The Chicago Board Options Exchange (CBOE) calculates a real-time index to show the expected level of price fluctuation in ... Read Full Answer >>
  5. How is the Put-Call Ratio calculated and where does the information come from?

    Traders and analysts use the put-call ratio as an indicator of market sentiment. They use the relationship between the demand ... Read Full Answer >>
  6. How can I find out which stocks also trade as options?

    The trading of options has become increasingly popular among retail investors as they become aware of the many different ... Read Full Answer >>

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