Equity options
From MarketsWiki
| This page is not complete! |
| Do you have knowledge to contribute on this or other subjects?
Help the wiki grow -- add what you know. |
Trading in equity options was first transacted solely in the over-the-counter market, but with the Chicago Board Options Exchange's (CBOE) founding in 1973, equity options became exchange-traded (listed) for the first time. Today, equity options are traded globally.
Today, equity options are traded in the U.S. and internationally on numerous exchanges. Worldwide volume in exchange-traded equity options, ETFs and equity indexes during the first four months of 2007 rose 26.5% to 806.3 million contracts.[1]
During 2006, total equity options volume in the U.S. reached 1.84 billion contracts, surpassing the 1.37 total equity contracts traded in 2005, a 34.7% increase.[2]
In contrast to the U.S. futures markets where traditionally one market has dominated the trading in a particular product, trading in equity options in the U.S. is a democratic system. Options exchanges can list duplicate equity options, and trading in these options are fungible; because all U.S. options exchange trades are cleared centrally by the Options Clearing Corporation OCC, a trade initiated at one options exchange can be offset at another exchange, based on the best available price in the market.
References
- ↑ [http://www.futuresindustry.org/fi-magazine-home.asp?iss=177&a=1194 "Trading Volume: Global Futures and Options Volume Reaches 4.6 Billion Contracts in First Four Months of 2007"]. Futures Industry Magazine. Retrieved on November 7, 2007.
- ↑ "The Options Industry Celebrates Another Record Year as Annual Volume Surges 35% over 2005". Options Industry Council. Retrieved on November 7, 2007.
