Registered Options Trader


DEFINITION of 'Registered Options Trader'

An individual working on the floor of an exchange whose function it is to watch a number of options traded on the exchange to ensure that they are being traded fairly, in fair market conditions. The individual may trade for him/herself or for other parties, but is under no obligation to 'make a market' for any options traded on the exchange.

BREAKING DOWN 'Registered Options Trader'

A registered options trader is a specialist dealing in options, but he or she does not necessarily perform the function of a market maker.

  1. Market

    A medium allowing buyers and sellers of a specific good or service ...
  2. Derivative

    A security with a price that is dependent upon or derived from ...
  3. Electronic Communication Network ...

    An electronic system that attempts to eliminate the role of a ...
  4. Nasdaq

    A global electronic marketplace for buying and selling securities, ...
  5. Exchange

    A marketplace in which securities, commodities, derivatives and ...
  6. American Stock Exchange - AMEX

    The third-largest stock exchange by trading volume in the United ...
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    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 >>
  2. Can mutual funds invest in options and futures?

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  3. How does a forward contract differ from a call option?

    Forward contracts and call options are different financial instruments that allow two parties to purchase or sell assets ... Read Full Answer >>
  4. How can an investor profit from a fall in the utilities sector?

    The utilities sector exhibits a high degree of stability compared to the broader market. This makes it best-suited for buy-and-hold ... Read Full Answer >>
  5. What are the main risks associated with trading derivatives?

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