Options Trading

What is options trading?

What are options and how do you trade them? Discover the fundamentals of options trading, including: what are options, which markets you can trade, what moves options prices, and how to get started with options trading in the UK. Choose from a range of expiries and trade on a breadth of markets when you trade options with us.

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The essentials of options trading
  • When trading options, you pay a premium up front, which then gives you the option to buy this hypothetical stock—call options.
  • sell the stock—put options—at the designated strike price by the expiration date
  • Leverage and Hedging
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leverage in options trading
  • Options are leveraged products much like CFDs and spread bets; they allow you to speculate on the movement of a market without ever owning the underlying asset.
  • Technical & Fundamental
  • Hedging with options allows traders to limit potential losses on other positions
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Pick an options trading strategy
  • The simplest options trading strategy involves buying a call option when you expect the underlying market to increase in value.
  • TBuying call options is a popular strategy because you can’t lose more than the premium you pay to open
  • Trade on ether - regardless of whether it rises or falls.
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Hedging your investment
  • Use continuous charting to predict a trade
  • If you own an asset and want to protect it against potential downwards market movement, you could buy a put option on the asset. This is called a married put
  • A covered call is the simplest short call position – you sell a call option on an asset that you currently own
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What is leverage in cryptocurrency trading?

Leverage is the means of gaining exposure to large amounts of cryptocurrency without having to pay the full value of your trade upfront. Instead, you put down a small deposit, known as margin. When you close a leveraged position, your profit or loss is based on the full size of the trade.


While leverage will magnify your profits, it also brings the risk of amplified losses – including losses that can exceed your margin on an individual trade. Leveraged trading therefore makes it extremely important to learn how to manage your risk.

What is margin in cryptocurrency and PIP trading?

Margin is a key part of leveraged trading. It is the term used to describe the initial deposit you put up to open and maintain a leveraged position. When you are trading cryptocurrencies on margin, remember that your margin requirement will change depending on your broker, and how large your trade size is.


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