Options broker

What is an options broker?

Options broker is an occupation in finance that specialises in offering options trading, education, research and other tools to individual investors. Many option brokers also offer trading services in stocks, bonds, mutual funds and exchange traded funds (ETFs).

Where have you heard about an options broker?

If you've ever sought advice or information on options trading, it is likely that you will have come across an options broker. The idea of options trading in organised exchanges was first introduced in 1973 and has since grown rapidly in volume.

What you need to know about an options broker.

Option trading was first introduced by the Chicago Board Options Exchange (CBOE) for institutional investors; however, recently it has become increasingly popular among individual investors. In response to this growth, option brokerage has grown considerably and specialised research and trading tools have been introduced and developed to cater to the needs of options trading and education. Common option trades include option spreads, covered calls and straddles.

Find out more about an options broker.

Further understand the role of an options broker by reading our definition of options trading.