FTSE 100 Index Option

FTSE 100 Index,

What's Its Full Form

• FTSE100 is a Major European Index.

• The Full Form of FTSE 100 is Financial Times Stock Exchange 100 Index was launched in 1984.

• It tracks the share price movements of the top 100 UK companies.
• It is calculated every 15 seconds throughout the working dat from 08.00 to the end of the 16.30 closing auction and as such acts as a real time indicator of the direction of the U.K. stock market.

Options of FTSE 100 Index

FTSE 100 Index Options gives you the right but not the obligation to buy or sell the value of the FTSE 100 Index on or before a specific date.

There are two types of FTSE 100 Index Options - calls and puts.

• The buyer of a call option acquires the right but not the obligation to buy the value of the index at a fixed price.

• The buyer of the put options acquires the right but not the obligation to sell the value of the index at a fixed price.

The FTSE 100 Index has long been a barometer by which professional money managers and private investors measure portfolio performance.

Unlike futures contracts, the potential loss to the buyer of an option is limited to the initial price paid for the contract (the premium) regardless of the performance of the FTSE 100 Index. This helps you to control the amount of risk assumed.

Well!! This is the story of the FTSE100 origin.

Will be back with a new story as to why it is on the top of the Stock Market..



Cheers!!!