Options trading

Here are the broad steps involved in becoming an options trader.

1. Learn how options work

2. Research and choose an options trading strategy

3. Create a spread bet or CFD account

4. Pass our options suitability test (unless you’re a professional client)

5. Make your first trade

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.

There is no minimum amount needed to open an options 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:

• What is options trading?

• Trading options with CMC

• Options volatility

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, the 'magnificent seven' US tech stocks, namely Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia and Tesla and our Gold and Silver ETFs.

CMC Markets Germany GmbH is a broker regulated by the German Federal Financial Supervisory Authority (BaFin). It holds funds of private clients separately from its own funds in separate bank accounts. In the unlikely event that CMC Markets Germany GmbH is unable to meet its financial obligations, the EdW would cover any claim for damages by claimants up to €20,000, provided that certain criteria are met.

CMC Markets Germany GmbH is a company authorised and regulated by the German Federal Financial Supervisory Authority (BaFin). CMC Markets complies with the requirements of §84 of the German Securities Trading Act (WpHG) regarding client funds.

There's no cost when opening a live trading account with us. You can also view prices and use tools such as charts, Reuters news or Morningstar quantitative equity reports, free of charge. However, you'll need to deposit funds in your account to place a trade.

Our income primarily comes from our spreads, while other fees, such as overnight holding costs, make a minor contribution to our overall revenue.