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

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RELATED FAQS
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    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 >>
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  4. Do you have to be an expert investor to trade put options?

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