Dealer Option

Posted in Finance, Accounting and Economics Terms, Total Reads: 416
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Definition: Dealer Option

Some options are traded over the counter while some are exchange traded. For options with physical delivery, dealer options are issued.


These options are traded outside their market and are often issues outside the traditional economics which offer maximum growth had attached security.

A dealer equity option is subject to 1256 contract under the US laws.

 

They are written by companies like clearing houses, which have the physical commodities and they are then offered to the public on the over-the-counter market. Dealer options are also present outside traditional trading markets, their sale is criticized as they act as a contract between parties.


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