Listed options trade on exchanges in a manner that is similar to the trading in listed stocks. The exchanges maintain orderly markets for listed options and provide investors with a marketplace to buy and sell options. Because options are derivative securities and there are different types, classes and series of options, the options market has some unique trading features.

NeedĀ Help Passing Your Series 4 Exam?

The Option Clearing Corporation

Related Articles
  1. Trading

    Getting Acquainted With Options Trading

    Learn more about stock options, including some basic terminology and the source of profits.
  2. Investing

    Why Options Trading Is Not for the Faint of Heart

    Trading options is not easy and should only be done under the guidance of a professional.
  3. Trading

    Stock Options: What's Price Got To Do With It?

    A thorough understanding of risk is essential in options trading. So is knowing the factors that affect option price.
  4. Trading

    How to Make Money by Trading Index Options

    Index options are less volatile and more liquid than regular options. Understand how to trade index options with this simple introduction.
  5. Trading

    A Newbie's Guide To Reading An Options Chain

    Learning to understand the language of options chains will help you become a more informed trader.
  6. Trading

    Exploring The World Of Exotic Options

    Exotic options provide investors with new alternatives to manage their portfolio risks and speculate on various market opportunities. The pricing for such instruments is considerably complex, ...
Frequently Asked Questions
  1. Who Benefits From Loaning Shares in a Short Sale?

    Does loaning shares in a short sale transaction derive any benefit other than interest on the loan?
  2. What does it mean when a stock trades on the Pink Sheets or the OTCBB?

    The stocks of well-known companies trade on major exchanges but companies must be listed prior to actually trading on an ...
  3. Who are Ford's (F) main suppliers?

    Explore the history and current operations of Ford Motor Co. and discover some of its primary global parts suppliers.
  4. Who are Toyota's (TM) main suppliers?

    Learn which companies make up Toyota's supply chain. The automotive giant provides awards to its largest and most efficient ...
Trading Center