Options broker

Options broker

Options brokers specialize in offering options trading, research, education and other tools to individual investors. In addition to common options trades like covered calls, option spreads, and straddles, many options brokerages offer trading in products related to options, including stocks, ETFs, mutual funds, and bonds ((also known as fixed income)).

A broker is required to facilitate both sides of the option transaction, whether the investor is writing the option or buying the option. [1]

Growth in options trading

Options trading in organized exchanges was first introduced in 1973 by the Chicago Board Options Exchange (CBOE)[2] and has since grown exponentially in volume, first among institutional investors and, more recently, driven by individual investors.[3]

This considerable growth has in turn promoted growth in option brokerages, who provide specialized trading and research tools geared at options traders’ needs as well as options education.[4]

Notes

  1. ^ Futures Trading, Options Trading Brokerage Services Accessed July 31, 2011.
  2. ^ History of CBOE
  3. ^ “Brokerages Demystify Options Trading as a Way to Ride Markets” by Joe Bel Bruno, Associated Press, May 10, 2008.
  4. ^ “Better Know Your Option Options” by Matt Krantz, USA Today, November 16, 2007

See also


Wikimedia Foundation. 2010.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • Broker — For other uses, see Broker (disambiguation). Brokerage redirects here. For the not for profit organization the Brokerage , see The Brokerage Citylink. A broker is a party that arranges transactions between a buyer and a seller, and gets a… …   Wikipedia

  • Options Clearing Corporation — Industry clearing Founded 1973 Headquarters Chicago, IL …   Wikipedia

  • broker — A company or individual that executes futures and options orders on behalf of financial and commercial institutions and/or the general public. Chicago Board of Trade glossary An agent who executes trades (buy or sell orders) for customers. He… …   Financial and business terms

  • broker — An agent employed to make bargains and contracts for a compensation. A dealer in securities issued by others. White v. Financial Guarantee Corporation, 13 Cal.App.2d 93, 56 P.2d 550, 553. A middleman or negotiator between parties. A person… …   Black's law dictionary

  • broker — An agent employed to make bargains and contracts for a compensation. A dealer in securities issued by others. White v. Financial Guarantee Corporation, 13 Cal.App.2d 93, 56 P.2d 550, 553. A middleman or negotiator between parties. A person… …   Black's law dictionary

  • IBM WebSphere Message Broker — WebSphere Message Broker (WMB) is IBM s information broker from the WebSphere product family that allows business information to flow between disparate applications across multiple hardware and software platforms. Business rules can be applied to …   Wikipedia

  • Forex Option & Currency Trading Options — A security that allows currency traders to realize gains without having to purchase the underlying currency pair. By incorporating leverage, forex options magnify returns and provide a set downside risk. Alternatively, currency trading options… …   Investment dictionary

  • London International Financial Futures and Options Exchange — LIFFE A financial futures market opened in 1982, in London s Royal Exchange, to provide facilities within the European time zone for dealing in options and futures contracts, including those in government bonds, stock and share indexes, foreign… …   Accounting dictionary

  • Real estate broker — This article is about the North American practice. For other definitions and practices in other countries, see Real estate. For real property, see Real property. Realtor redirects here. For the real estate industry trade association that refers… …   Wikipedia

  • Boston Options Exchange - BOX — An all electronic equity derivatives exchange launched on February 6, 2004, as a joint effort by the Montreal Exchange, Boston Stock Exchange and Interactive Brokers Group to provide an alternative to existing options markets. Technical… …   Investment dictionary

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”