Options
Here are the broad steps involved in becoming an options trader.
Learn how options work
Research and choose an options trading strategy
Create a CFD trading account
Pass our options suitability test (unless you’re a professional client)
Practise options trading with your demo account
Start trading on your live account when you’re ready
You don't need a separate account. If you’re a retail trader, you'll need to pass our suitability test before you can trade options using your existing spread betting or CFD account. If you're a professional client, you can trade options using your existing spread betting or CFD account, without needing to pass the suitability test.
As a CMC Markets customer, you won’t pay any commission, holding fees or financing fees when you trade options with us. The only costs you’ll pay are the spread and, if the instrument you’re trading is priced in a currency other than your home currency, a currency conversion fee. We charge 0.5% of the realised profit or loss to convert foreign currencies into your home currency.
There is no minimum amount needed to open a trading account with us.
Our website has a range of learn articles, guides, and resources to help you navigate your options trading journey. You may find the following resources useful:
Option trades on our platform are cash-settled. Trading options with us doesn’t entitle you to any rights in relation to the underlying asset, and exercise of an option doesn’t result in the acquisition or disposal of an instrument. Instead, an option contract which has reached its expiry date will be closed and cash settled, with an amount payable to you (if the market moved in your favour) or by you (if the market moved against you).
Currently you can trade options on a range of leading indices, including the S&P 500, Nasdaq 100, FTSE 100 and Dax, plus seven of the biggest US tech stocks, such as Amazon, Apple, Meta Platforms and Nvidia.
All trading carries risk. With options, if you buy a put and a call option on a volatile asset, you automatically limit any losses to the price of the premium paid, while giving yourself the potential to make a profit. Traders who sell options can make a profit limited to the premium received, but the potential loss is unlimited.
The higher the implied volatility, the greater the likelihood the option will be in the money at its expiration. This likelihood is reflected in the options price, resulting in a higher premium.
Yes it’s possible to make a profit if the market is declining. One way to take advantage of falling prices could be to buy a put option, or sell a call option. Learn more about the potential benefits of trading options.
No you don’t have to do this. You can place call and put options at the same strike price through a strategy called a straddle, but you can potentially profit by buying a call and put at different strike prices, which is known as a strangle.
Straddles and strangles are just two methods of trading based on volatility expectations. There are many other ways traders can trade on volatility, or limit their risk to volatility, through options.
Cash-settled options will automatically be exercised at expiration if it’s in the money, generating a positive outcome for the buyer.
If an option expires out-of-the-money, it won’t be exercised. The buyer’s maximum loss is limited to the premium paid for the contract. If an option expires in the money, it will be automatically exercised.
Yes, we currently offer stock options on seven of the biggest US tech stocks, such as Amazon, Apple, Meta Platforms and Nvidia.
Yes, and this approach is used by traders with the aim of helping to manage losses and increase profit potential. There are a number of complex options strategies that traders can benefit from, including straddles and strangles.