CFLEX

DEFINITION of 'CFLEX'

An electronic system for trading flex options, or options that do not possess standard conditions and, instead, allow clients and brokers to negotiate the terms, such as the strike price and expiration date. Introduced by the Chicago Board of Options (CBOE), CFLEX gives traders all the freedoms and advantages of exchange-traded FLEX options on a low-cost, internet-based, stand-alone, browser-based platform.

BREAKING DOWN 'CFLEX'

Unveiled in 1993, FLEX options were created by CBOE. They began to lose popularity, however, as online trading of other types of options became commonplace, yet FLEX options still required manual servicing. With the introduction of CFLEX, CBOE aims to create a more popular marketplace for its FLEX options

RELATED TERMS
  1. Time In Force

    A special instruction used when placing a trade to indicate how ...
  2. Chicago Board Options Exchange ...

    Founded in 1973, the CBOE is an exchange that focuses on options ...
  3. OTC Options

    Exotic options traded on the over-the-counter market, where participants ...
  4. Listed Option

    An option that is sold on a registered exchange, such as the ...
  5. Time Decay

    The ratio of the change in an option's price to the decrease ...
  6. Flexible Exchange Option - FLEX

    A non-standard option which can be customized, allowing both ...
Related Articles
  1. Options & Futures

    Forecasting Market Direction With Put/Call Ratios

    Options are not only trading instruments but also predictive tools that can help us gauge the feelings of traders.
  2. Options & Futures

    Customize Your Trading With Flex Options

    These unique instruments take options trading to a whole new level.
  3. Retirement

    Roth IRAs Tutorial

    This comprehensive guide goes through what a Roth IRA is and how to set one up, contribute to it and withdraw from it.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. Home & Auto

    Understanding Pre-Qualification Vs. Pre-Approval

    Contrary to popular belief, being pre-qualified for a mortgage doesn’t mean you’re pre-approved for a home loan.
  9. Investing Basics

    An Introduction To Structured Products

    Structured products take a traditional security and replace its usual payment features with a non-traditional payoff.
  10. Options & Futures

    Contango Versus Normal Backwardation

    It’s important for both hedgers and speculators to know whether the commodity futures markets are in contango or normal backwardation.
RELATED FAQS
  1. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  2. What is after-hours trading? Am I able to trade at this time?

    After-hours trading (AHT) refers to the buying and selling of securities on major exchanges outside of specified regular ... Read Full Answer >>
  3. Can you invest in mutual funds on E*TRADE?

    E*TRADE allows investors to invest in thousands of mutual funds through its investment platform. E*TRADE has over 8,000 leading ... Read Full Answer >>
  4. Can you invest in mutual funds on Scottrade?

    Scottrade, Inc. offers investors a versatile selection of mutual funds in which they can invest. Scottrade allows investors ... Read Full Answer >>
  5. How do hedge funds use equity options?

    With the growth in the size and number of hedge funds over the past decade, the interest in how these funds go about generating ... Read Full Answer >>
  6. Can mutual funds invest in options and futures? (RYMBX, GATEX)

    Mutual funds invest in not only stocks and fixed-income securities but also options and futures. There exists a separate ... Read Full Answer >>
Hot Definitions
  1. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  2. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  3. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  4. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  5. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
Trading Center