Options
Options trading is a form of derivative trading that allows you to trade on the Australian securities market. There are a number of options strategies which traders can use to help improve the performance of their portfolio. CMC Markets Stockbroking offers a sophisticated and professional solution to options traders. Available on both platforms – standard and Pro – options trading has never been more convenient.
What are Options?
Options are contracts that give the buyer the right, but not the obligation, to buy or sell underlying securities at a predetermined price on or before a specific date. Like warrants, options are listed on regulated exchanges such as the Australian Securities Exchange (ASX), and are specifically referred to as Exchange Traded Options (ETOs).
Options can be traded on several kinds of underlying securities, the most popular being equities (stocks), indices and Exchange Traded Funds (ETFs). There are also many options strategies which can help traders limit their risks and take advantage of market opportunities.
Why trade Options with CMC Markets?
Single sign-on account
With CMC Markets, trade Options, International shares and other stockbroking products using one account on the standard or Pro platform. Our integrated solution was designed with the Active trader in mind, to make your reporting, analysis and execution very easy.
Easy set up and execution of orders
Different tools available on our Pro platform to help you create and execute different Options strategies. You can customise the platform to suit your trading requirements.
Options pay off diagrams and strategy analysis
You can access real time payoff diagrams to help assess your strategy. Once your strategy is complete, you can place a trade using the same module.
Our advanced Options analytics risk tool on our Pro Platform will help you perform ‘what-if‘ scenario analysis on your portfolio’s value in real time by adjusting certain variables.
Options finder and pricing tools
The Options finder tool will help you to filter and build out your Options strategies. Our Options pricing tools will help you estimate margin at the time of placing the order. You can also request for quote from Market makers (RFQ).
Straight Through Processing of Orders
Options orders and order amendments placed through the CMC Markets platform are sent direct to market subject to market integrity filters. This maximises the chance of your orders executing on market.
Online Multi Leg Options Orders
Options and Options/Equity multi leg combination orders can be placed and amended on the platform allowing you to have full control of the order from placement to execution.
Stay on top of your trading whilst on-the-go
with our stockbroking mobile apps
Competitive Brokerage Rates
You can trade Exchange Traded Options (ETOs) on our fully integrated platform. Both Stockbroking platforms provide you with the tools you need to execute on your Options Strategy. Our Pro platform boasts a professional interface, and is a powerful tool to boost efficiency for active traders.
To open a CMC Markets Stockbroking Account, please complete and return a signed original application form.
| Trade Value | Brokerage (including GST)^ |
|---|---|
| $0 - $10,000 | $33.00 |
| Over $10,000 | 0.33% |
Options trading levels
Options orders can be placed on our Standard and Pro platforms. However, to take advantage of complex strategies we recommend you trade on our Pro platform.
Once you have Options enabled in your account, you will need to take our Options quiz to analyse your level of expertise. View the strategies available to each Options trading level, and select the Options quiz level you wish to complete. You can access the Options Trading level quizzes on our standard platform within the ‘Trading Settings’ page under the ‘Settings’ menu, or you can refer to our standard platform quick guide for more details.
| Level 1 | Level 2 | Level 3 | Level 4 |
|---|---|---|---|
| At Level 1, you are able to trade these strategies: | At Level 2, you are able to trade Level 1 and these strategies: | At Level 3, you are able to trade Level 1, 2, and these strategies: | At Level 4, you are able to trade Level 1, 2, 3, and these strategies: |
| Long Call Long Put Long Strangle Long Straddle Married Put | Buy Write Covered Call | Call and Put Spread Short Straddle Short Strangle Long/Short Split Strike Long/Short Synthetic Long/Short Condor Long/Short Butterfly Long/Short Calendar Collar | Short Call Short Put Custom |
What’s the difference between our standard and pro platforms?
Forms and guides
- Stockbroking Legal Documents (Includes Financial Services Guide, Terms and Conditions, and Exchange Traded Options PDS)
- ASX Understanding Options Trading
- Options account form
- Options personal guarantee form (Only for company and trust applications where the guarantee form has not already been sighted)