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Options trading
Options trading












Plus500 only offers trading in options CFDs. We offer multiple Put/Call options CFDs for each underlying instrument. A strike price is defined as the rate the underlying instrument needs to reach by the expiry time in order for the trade to be in profit. You can diversify your positions by trading on various strike prices.

options trading

For example, Alphabet (GOOG) is viewed by some traders as an expensive stock, while the price of an Alphabet option can often be much more affordable - meaning you can buy more units for the same amount of initial capital. It's possible to open larger positions with lower initial margin as options' prices are substantially cheaper than their underlying instruments. You can experience higher volatility – percentage changes in options tend to be much more significant, meaning they can potentially deliver greater returns (along with greater risks). Trading on options has some important advantages: For a list of available options, click here. Plus500 offers a range of Call/Put options CFDs. You are not buying or selling the option itself. In CFD trading, a popular form of day trading, your profit (or loss) is determined by reference to the movement of an option price. NOV (November 2018) – The option’s expiry date.the price you assume the underlying instrument will surpass at the expiry date.

options trading

  • Call – The option type (can be either Call or Put).
  • Puts – A buyer/seller of a “Put Option” expects the price of the underlying instrument to fall/rise.Ĭalls – A buyer/seller of a “Call Option” expects the price of the underlying instrument to rise/fall.įor example, here is a breakdown of an option on Meta stock:

    options trading

    If you enter a position on a Call/Put option, you are essentially entering a contract on the price an underlying instrument will reach (or surpass) at the expiry date. Plus500 offers two types of options CFDs: Call option and Put option - you can Buy or Sell both types. When you trade options you are speculating on the future price (strike price) of an underlying instrument such as a stock, index or commodity.














    Options trading