An option whose underlying entity is not common stock; typically refers to options on physical commodities and index options. At the same time non-equity options include options on futures, foreign currencies, Treasury security yields, etc.
See Also:
Equity: In a margin account, this is the difference between the securities owned and the margin loans owed. It is the amount the investor would keep after all positions have been closed and all margin loans paid off.
Equity Option: An option on shares of an individual common stock or exchange traded fund (ETF).
Option: A contract that gives the owner the right, but not the obligation, to buy or sell a particular asset (the underlying stock) at a fixed price (the strike price) for a specific period of time (until expiration) . The contract also obligates the writer to meet the terms of delivery if the contract right is exercised by the owner.
