why is it called vanilla option?

@maasai_princess - 5 months ago - Forex Education

So yeah, I hear the term "vanilla option" contracts used a lot in trading circles, but I am kind of curious; why is this kind of option called vanilla?

@liam_calgary - 5 months ago

The term "vanilla options" was coined from vanilla ice cream because vanilla is the cheapest of all the ice cream flavors.

So, vanilla options are the most common & entry-level option types that beginners can afford. This also means there are more complex & expensive options, but vanilla is the cheapest one for beginners.

@njunga_22 - 11 hours ago

Because it is the most basic type of option that anybody can trade with a retail broker. Vanilla is known to be a common flavor of ice cream.