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.

RELATED TERMS
  1. Options Industry Council - OIC

    A cooperative formed in 1992 by U.S. options exchanges and Options ...
  2. CFLEX

    An electronic system for trading flex options, or options that ...
  3. Basket

    A single unit of at least 15 stocks that are used in program ...
  4. Chicago Board Of Trade - CBOT

    A commodity exchange established in 1848 that today trades in ...
  5. Option

    A financial derivative that represents a contract sold by one ...
  6. New York Board Of Trade - NYBOT

    A commodities exchange in New York that trades futures and options ...
Related Articles
  1. Options & Futures

    Introduction To Single Stock Futures

    These contracts allow for easier shorting, and provide more leverage and flexibility than stocks.
  2. Options & Futures

    Options Basics Tutorial

    Discover the world of options, from primary concepts to how options work and why you might use them.
  3. Options & Futures

    Using "The Greeks" To Understand Options

    These risk-exposure measurements help traders detect how sensitive a specific trade is to price, volatility and time decay.
  4. Options & Futures

    How The Straddle Rule Creates Tax Opportunities For Options Traders

    This rule allows traders to substantially reduce their risk, and possibly benefit on their tax returns as well.
  5. Options & Futures

    An Option Strategy for Trading Market Bottoms

    The reverse calendar spreads offers a low-risk trading setup that has profit potential in both directions.
  6. Options & Futures

    What Does Quadruple Witching Mean?

    In a financial context, quadruple witching refers to the day on which contracts for stock index futures, index options, and single stock futures expire.
  7. Professionals

    Is A Stockbroker Career For You?

    Becoming a stockbroker requires a broad skill set and the willingness to put in long hours. But the rewards can be enormous.
  8. Options & Futures

    4 Equity Derivatives And How They Work

    Equity derivatives offer retail investors opportunities to benefit from an underlying security without owning the security itself.
  9. Options & Futures

    Five Advantages of Futures Over Options

    Futures have a number of advantages over options such as fixed upfront trading costs, lack of time decay and liquidity.
  10. Term

    What is Pegging?

    Pegging refers to the practice of fixing one country's currency to that of another country. It also describes a practice in which investors avoid purchasing security shares underlying a put option.
RELATED FAQS
  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 >>
Hot Definitions
  1. Flight To Quality

    The action of investors moving their capital away from riskier investments to the safest possible investment vehicles. This ...
  2. Discouraged Worker

    A person who is eligible for employment and is able to work, but is currently unemployed and has not attempted to find employment ...
  3. Ponzimonium

    After Bernard Madoff's $65 billion Ponzi scheme was revealed, many new (smaller-scale) Ponzi schemers became exposed. Ponzimonium ...
  4. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included in earnings reports are items such as net ...
  5. Dark Pool Liquidity

    The trading volume created by institutional orders that are unavailable to the public. The bulk of dark pool liquidity is ...
Trading Center