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OptionAutomator Options Trading Glossary:
Definition, Examples & Resources:Index Option'
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What is Index Option in Options Trading ?
A derivative on an
product that gives the holder the right, but not the obligation, to buy or
a basket of stocks depending on if the investor is holding call or put respectively. Index
are typically settled in cash basis only.
Explore More of OptionAutomator’s Content:
Glossary: Mini Index Options
The tailor made index option contracts for small investors, whose lot size is tenth the size of the standard lots of index.[click to read more]
Previous term : Horizontal Spread
Next term : Naked Option
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