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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RELATED FAQS
  1. Why is the Chicago Board Options Exchange important?

    Learn about the history of the Chicago Board Options Exchange and understand the CBOE's central importance in the financial ... Read Answer >>
  2. What is the CBOE Volatility Index? (VIX)

    Find out why investors and analysts use the Chicago Board Options Exchange Volatility Index, or VIX, to measure the market's ... Read Answer >>
  3. 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 Answer >>
  4. Does the seller (the writer) of an option determine the details of the option contract?

    The quick answer is yes and no. It all depends on where the option is traded. An option contract is an agreement between ... Read Answer >>
  5. How is the Put-Call Ratio calculated and where does the information come from?

    Discover how major exchanges and financial websites, such as the Chicago Board of Exchange, compile data for their respective ... Read Answer >>
  6. What is the difference between open interest and volume?

    Learn more about options, what options' volume and open interest are and the difference between volume and open interest ... Read Answer >>
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