Tag: options

  • Chicago Board Options Exchange

    The Chicago Board Options Exchange, or CBOE for short, is one of the largest and oldest options exchanges in the world. First established in 1973, the CBOE mediates almost half a billion options contracts each year, involving over 50 stock indexes and 1200+ companies. The CBOE is one of the major national exchanges that call Chicago home, along with the Chicago Stock Exchange (CHX)and the ...

  • Buying On Margin

    Buying on Margin, also known as Margin Buying, is the practice of buying shares or securities using money borrowed from a broker. The amount of the loan may be several times more than the investor’s own contribution- for example $20 from the investor and $80 from the broker to purchase a $100 share of stock. Since the purchased securities themselves are the collateral backing up the loan, ...

  • Futures

    Futures, in the financial sense of the word, are closely related to Options but with one crucial difference: while Options contracts give their purchaser the right to buy or sell a certain commodity or security by or at a certain date, a Futures contract imbues the trader with the obligation to settle the contract. In this respect, futures contracts entail a certain level of urgency that ...

  • Options Clearing Corporation

    The Options Clearing Corporation, commonly known by the abbreviation OCC, was established in 1973 to provide a secure and stable foundation for the blossoming trade in stock and other options as well as other financial derivatives such as commodity options, commodity futures and security futures. As indicated by its name, the OCC acts as a clearinghouse and a guarantor for these types of ...

  • Trading

    It may surprise you to learn that options trading is not a recent development in economics, but in fact has a very long history that goes back nearly to the very beginnings of human economic activity. These early options trades mainly dealt with real estate and the gradual accumulation of land, plot by plot. One more modern example of an “option” might be the decision of a major motion ...

  • A

    401(k) plan – A 401(k) plan (sometimes written “401-K”) is a type of retirement plan that in its most common variation is both employer-sponsored and participant-directed. Named for a relevant section of the U.S. Internal Revenue Code, a 401(k) plan is tax-deferred and allows employees to divert a set monetary amount from their paychecks into […]