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Glossary

Chicago Board Options Exchange (CBOE)

The Chicago Board Options Exchange (CBOE) is a subsidiary of CBOE Holdings, Inc. and is the largest U.S. options exchange and creator of listed options. CBOE Holdings offers equity, index and ETP options, including proprietary products, such as S&P 500 options (SPX), the most active U.S. index option, and options and futures on the CBOE Volatility Index (the VIX Index).

Chikou Span

A lagging technical indicator which is an element of theIchimoku Kinko Hyo indicator that plots price movement 26 periods behind the most recent closing price.

Choppy Market

Price chart action that swings up and down at a high frequency, but resulting price movement remains neutral.

Class

All options of the same type (call or put), for a particular stock, index fund or futures security.

Clearing Corporation

An agency or company associated with an exchange to manage confirmation, settlement and delivery of transactions.

Close

Refers to the price at which a financial instrument or an overall market ended a period of trading.

Close End Fund

A fund with a finite amount of share capital — additional shares cannot be issued or redeemed based on fluctuating demand.

Closet Indexing

The practice of fund managers to construct a fund portfolio comprised of nearly the same securities as its benchmark index, to achieve performance similar to the benchmark index. 

Collateral Trust Bond

Short term debt instrument secured by stocks or bonds that is held by a trustee for the holders of the bond.

Commodity

A commodity is any good that is identical from any producer, where producers engage in price competition. They are used in the production of other goods or services.

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