Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z 

Index Option

Index Option Definition

Index Option means a securities-futures contract whose underlying security is an index. It allows an investor to bet on the performance of the entire market reflected in the index. Using this possibility not only a few shares, but a whole basket of securities is traded, eliminating the risk of choosing one or few wrong stocks. If an index option is exercised, settlement is made by cash payment, since physical delivery is not possible in case of an index.

RELATED CATEGORIES
Options & Futures







Ask a Question

Learn the famous formula for money-making, based upon the THIRTEEN PROVEN STEPS TO RICHES! Get your FREE Copy & Instant Access to Think and Grow Rich by Napoleon Hill just by signing up.
 
   
Newsletter cover
Browse:  #  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z