Exchange-Traded Option
Contents
Unlocking the Potential of Exchange-Traded Options: A Comprehensive Guide
Understanding Exchange-Traded Options
Explore the world of exchange-traded options, standardized derivative contracts traded on exchanges. Learn about call and put options, strike prices, and expiration dates, all overseen by regulatory bodies and guaranteed by clearinghouses.
Benefits of Exchange-Traded Options
Discover the advantages of exchange-traded options over over-the-counter (OTC) options. Explore how standardized contracts enhance liquidity, reduce costs, and provide security for traders, attracting a larger pool of participants.
Drawbacks of Exchange-Traded Options
Examine the limitations of exchange-traded options, particularly their lack of customization compared to OTC options. Despite this drawback, discover how exchange-traded options offer a wide range of strike prices and expiration dates to meet traders' needs.