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. 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: 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.

Option trading