index option
Definition
Securities-futures contract that allows an investor to bet on the performance of the entire stockmarket (instead of the performance of only on a few stocks/shares) by trading in a basket of securities represented by a stockmarket index such as Standard & Poor's 500 (S&P 500). Index options also eliminate the risk of relying on one or few wrong stocks that may not perform as expected. Also called index future.
index option is in the Banking, Commerce & Finance, Disaster Planning & Risk Management, Investing and Securities & Futures Trading subjects.
index option appears in the definitions of the following terms: triple witching hour, double witching hour and index future
index option appears in the other term: stock index option
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