Chicago Board Options Exchange (CBOE)
Candlefocus EditorThe Chicago Board Options Exchange (CBOE) is a global market leader in derivatives trading and is a major player in the U.S. securities market. Founded in 1973, CBOE is the oldest and largest options exchange in the U.S. and the second largest options exchange in the world.
The CBOE provides a forum for investors and traders of all levels of experience to trade a diverse offering of stock options, foreign currency options, index options and futures. Options are contracts that give the buyer the right, but not the obligation, to buy or sell an underlying stock or other security at a predetermined price within a specified period of time.
The CBOE is regulated by the U.S. Securities and Exchange Commission (SEC) and is home to the CBOE Volatility Index (VIX) – the premier barometer of equity market volatility. The VIX is the world’s most widely followed measure of U.S. market volatility, largely due to its use as a benchmark for a large number of investment products.
In addition to options, the CBOE offers a variety of trading tools and techniques such as covered calls and multi-leg orders as well as options on currencies, futures and ETFs. The exchange also provides an online trading platform that makes it easy for investors to trade on the CBOE.
The CBOE has established the Options Institute to provide options education and trading insights. Novice traders can participate in a number of seminar programs and webcasts to gain a better understanding of the options market and how to trade options. Experienced traders can attend advanced seminars to further hone their trading skills.
The CBOE's commitment to creating a vibrant options market has been that of a leader and innovator. With its competitive fees, efficient order execution and superb customer service, the CBOE has become a model for other exchanges to follow.
The CBOE has proven its value to investors, traders and other users of derivative products with its commitment to setting new benchmarks in trading sophistication and markets efficiency.