Why trade options?
Options are a versatile, complimentary product to spot forex, CFDs and spread bets that allow you to trade in any market climate, regardless of low or high volatility. Options are also unique because when you buy an option, your risk is capped and your potential profit is unlimited. However, keep in mind that when selling an option, your potential loss is unlimited and your profit is capped.
Many traders use options to hedge their forex, CFD or spread bet positions. With all the trading products available at GFT Markets, you can use options to easily diversify your portfolio and trade the products you want, all from one place.
GFT provides you with an unparalleled options trading experience:
- No commissions
- Low and competitive margins across all markets
- Trade spread bet and CFD options on all our DealBook® platforms, including mobile apps*
- Exchange-style look and feel with standardised contract sizes, strikes and expiration cycles
- Expiries running from one week up to six months
- A variety of possible strategies such as straddles and strangles
*FX options are only available on DealBook® 360.
What are options?
There are two types of options: calls and puts.
The buyer of the call option pays a premium to the seller for the right (but not the obligation) to buy an agreed quantity of an underlying instrument from the seller of the option at or before a certain time (the expiration date) and at a specific price (the strike price). Should the buyer decide to do so, the seller is obligated to sell the instrument.
The buyer of the put option has the right (but not the obligation) to sell an agreed quantity of an instrument to the seller of the option at or before the expiration date and at the strike price. Should the buyer decide to do so, the seller is obligated to buy the instrument.
For more on how options work, check out our options reference guides listed to the right.
What can you trade with options?
The available markets can be found in our market information sheets listed to the right.