Basics

Index

Statistical measure of grouped asset performance

What is Index?

Index A statistical measure tracking the performance of a group of assets. Major indices include the S&P 500, Nasdaq 100, and Russell 2000. Index options (like SPX) are cash-settled and European-style, while ETF options (like SPY) are physically settled and American-style.

Complete Definition

A statistical measure tracking the performance of a group of assets. Major indices include the S&P 500, Nasdaq 100, and Russell 2000. Index options (like SPX) are cash-settled and European-style, while ETF options (like SPY) are physically settled and American-style.

Example

The S&P 500 index tracks 500 large-cap US stocks. SPX options settle in cash, while SPY ETF options deliver shares.

Related Terms

Etf European Option Vix Index

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