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113: The Life Cycle of an Options Trade

Stock Market Options Trading

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Evolution of Options Trading: From Floor Trading to Electronic Marketplace

The chapter traces the evolution of options trading over the past two decades, highlighting the shift from traditional floor trading to the digital marketplace. It explores the impact of algorithmic trading on trade volume and the introduction of daily expirations, emphasizing the exponential growth in trading activity. The discussion also focuses on zero DTE options, debating the advantages for retail traders and the role of exchanges in meeting customer demand for precise risk hedging tools.

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