What are Contract Options?
A Contract Option allows an investor to buy or sell an underlying security at a given price (strike price), thus taking advantage of both market volatility and markets which are not exhibiting any particular direction. Contract options offer alternative investments in commodities, interest rates, stock indices, currencies and bonds. By hedging a multi-asset portfolio investors can guard against price movements of the underlying assets.
The most common types of Contract Options are Put and Call Options, which give the investor the right to sell or buy the underlying security at the strike if the price of the underlying crosses it. Contract Options trade on margins, the sizes of which are regulated by the Exchange. An investor should be prepared to place between approximately 5% and 15% in margin.
How we can help
We are able to offer trading on both American and European style Put and Call Contract Options, providing you with the prospect of alternative revenue growth.