An Options Exchange is a marketplace where traders can buy and sell options contracts. These contracts give the buyer the right, but not the obligation, to buy or sell an underlying asset, such as stocks, at a predetermined price within a specific time frame. Options exchanges facilitate these transactions, providing a platform for price discovery and liquidity. Traders use options for various strategies, including hedging against potential losses or speculating on price movements. Major Options Exchanges include the Chicago Board Options Exchange (CBOE) and the NASDAQ Options Market, which help ensure fair trading practices and transparency in the options market.