Options1 offer an alternatives to traditional FX trading, helping you take a position in even the flattest markets. They give you the right – but not the obligation – to buy or sell an underlying asset before a certain expiry date, allowing you to speculate on the future price of a financial market. Work to your own timeframe by taking daily, monthly or quarterly positions.
Options are only available via spread betting accounts and professional CFD accounts.
Bets not already closed by the client expire automatically at the date/time indicated. No spread is charged on automatic closings.
Our quotes are an 'all-in' spread on all options which includes both our spread and the market spread. This applies to both opening and closing transactions. The size of the spread depends on a range of factors including the level of the option premium, the time to expiry and the liquidity of the underlying market.
Spreads are subject to variation, especially in volatile market conditions.
Daily options are available 24 hours on major forex pairs beginning within an hour of the market close. Quoting may be suspended on public holidays.
The margin for 'buying' an option is the opening price (or premium) multiplied by the size of the bet. This is the maximum amount that the bet can lose. The margin for 'selling' an option is the same as the margin incurred when trading the underlying futures market.
Daily options on forex are settled basis the first print recorded by Bloomberg (E&OE) at 20:00 (London time). Weekly forex options expire based upon the first print on Bloomberg (E&OE) of the spot rate concerned at 10.00 New York time (normally 15.00 London time) on the Friday specified (or previous business day in the case of US public holidays).
Weekly and quarterly forex options are available for online dealing. Unlisted expiries up to 12 months are available on request. For all daily and weekly options, bets will be accepted from one hour after the previous day's settlement until one minute before expiry.
Daily forex options settle basis the first print recorded by Bloomberg (E&OE) at 20.00 (London time) for the relevant currency pair. Weekly forex options expire basis the first print on Bloomberg (E&OE) of the spot rate concerned at 10.00 New York time (this is normally 15.00 London time) on the Friday specified (or previous business day in the case of US public holidays).
Call options settle at the settlement price less the strike price, or at zero, whichever is greater. Put options settle at the strike price, less the settlement price, or at zero, whichever is greater.
Our spread on weekly options depends on a range of factors including the level of the price quotation and the time to expiry. The usual spread range will be from three to ten points.
24-hour dealing on daily options starts at 07.30 (London time) on Monday and finishes at 21.15 (London time) the following Friday. Options can normally be traded from one hour after the previous settlement until one minute before the close of each market.
The margin requirement for buying an option is the opening price (or premium) multiplied by the contract value (per point in the underlying market). This is the maximum possible loss on the position.
The margin requirement for selling an option is equal to the margin required for an equivalent sized CFD in the underlying market, and never more than the margin required for an equivalent sized CFD in the underlying market.
Daily FX options spread will range from 4 to 10 points. For EUR/GBP the spread will range from 2 to 9 points, and for AUD/USD from 1 to 12 points.
When you trade in a currency other than your base currency your profit or loss will be realised in that currency and will be booked to your account in that currency. As a default, we will automatically convert any positive or negative balance on your account in a currency other than your base currency to your base currency when your position is closed. You may change this default at any time via our trading platform or by calling us.
We quote Weekly FX options that settle each Friday basis the spot rate at 15.00 (London time).
1 Options are currently only available on our classic platform and mobile apps. They will be available on the new IG Trading platform soon.