Exotic options traded on the over-the-counter market, where participants can choose the characteristics of the options traded.

Investopedia Says:
The flexibility of these options is attractive to many. With OTC options, both hedgers and speculators can benefit from avoiding the restrictions that normal standardized exchanges place on options. The flexibility allows participants to achieve their desired position more precisely and cost effectively.

Related Links:
An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them. Options Basics Tutorial
Take a look at a study that discovered that three out of every four options expired worthless. Do Option Sellers Have a Trading Edge?
An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them. Options Basics Tutorial
Learn how to buy calls and then sell or exercise them to earn a profit. Going Long On Calls
Learn to make money on a falling stock. Prices Plunging? Buy A Put!


 
 
 

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