Options Glossary

Glossary: Index

Last Updated: July 12, 2015



What Does Index Mean in Options Trading?

An index is a measurement of the sum total of prices calculated with a weighting of different percentages among a group of stocks, to provide an indication and consistent measure of the overall market performance.
It usually refers to a measure of change in the market. This market change is assessed by traders to measure how much an index has fallen from the previous day.

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