Daily options

Discover low spreads on an unparalleled range of daily options and get greater control over your leverage and risk than trading spot indices, forex and commodities when you trade options with CFDs.

Start trading today. Call +44 (20) 7633 5430, or email sales.en@ig.com to talk about opening a trading account. We’re here 24/5.

Pros and cons of trading daily options

Pick your own leverage

Choose your strike and trade size to determine your leverage and match your risk appetite, bearing in mind profit/loss will still be calculated based on your full position size.

Low spreads

Trade daily options with new reduced spreads as low as one point – the same as regular spot markets.

Limited risk on buying options

Buying options is inherently limited-risk – you’ll only risk as much as the margin you pay when buying an option.

Substantial risk on selling options

With selling call or put options, your risk of loss is potentially unlimited.

Increased flexibility

Hold your bought position even when markets move against you. Until expiry there is always potential for a worthless bought option to become profitable.

Unparalleled market range

IG offers daily options on more markets than any other provider.

24-hour trading

You can trade daily options around the clock on our most popular markets.¹

No spread at expiry

Unlike other providers, we won’t charge you any closing spread to close an option if you hold it to expiry.

Make sure you understand the differences between options and spot markets before you trade.

What are daily options?

Options are contracts that let you trade on the price movement of an underlying asset With IG, you can trade CFDs on an option’s price. You’ll never risk more than your initial payment when buying, just like trading an actual option, but your positions will always be cash-settled at expiry. You’ll never have to deliver, or take delivery of, the underlying.

You can use daily options to take a view on whether you think a market will be above or below a certain level – the strike price – at the option’s expiry. For daily options, this is at market close on the same day that you open your trade.

The cost to open a position is based on the strike price and trade size you choose. This means the amount you pay to open your position can be significantly less than when trading CFDs on spot markets.

Types of daily option

There are two types of daily option – calls and puts.

If you think the market is going to rise, you’d buy a call
If you think the market is going to fall, you’d buy a put

Find out more about types of options and how to trade them here.

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FAQs

How much does an option cost?

Our daily option prices are set by our dealing desk, based on the following three factors: the time to expiry, the current level of the underlying market and the volatility of the market.

The more likely it is that the underlying market will be above a call option’s strike price at expiry, the higher the option’s margin will be.

Likewise, the more likely it is that the underlying marketing will be below a put option’s strike price at expiry, the higher the margin will be.

The margin is calculated as trade size x daily option price.

How does selling options differ to buying them?

Selling options carries a much higher risk profile than buying them.

When you sell an option, you have the obligation to buy or sell at the strike price, and there’s no predicting how far past the strike the underlying may be at expiry. This means that when you sell call options the risk is potentially unlimited.

Learn more about the risks involved in options trading.

How do I trade options via CFDs?

Trading options via CFDs is similar to trading them on the open market. For instance, you can buy the right to trade ten FTSE 100 CFDs at 7100. You’ll pay a margin at the outset, where on a traditional option you’d pay a premium, but it functions in the same way – when buying, you won’t risk more than your initial payment. All CFDs on our options are cash-settled on closing – you’ll never have to deliver, or take delivery of, the underlying.

Learn more about trading options.

What’s the difference between margin and premium?

When you trade on margin, or trading CFDs on a spot market, you get greater exposure to a market than the amount you deposit to open the trade. However, as well as the potential for magnified gains, you could also experience magnified losses exceeding your initial deposit.

When you buy IG options you still pay a margin to open your position, but it works like the premium of a traditional option. You’ll get greater exposure to a market than the amount you originally deposited to open the trade, but your risk is limited to that initial payment.

When selling traditional options, you receive the premium upfront. When you sell IG CFD options, you’ll pay a margin upfront – your maximum profit if your trade works out. However, you’ll be left open to potentially unlimited losses if the market doesn’t go your way.

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You can also trade longer expiries with our weekly, monthly and quarterly options.

Speculate on financial markets without buying or selling any underlying assets.

Follow our four-step guide to trading shares, from how the market works to making your first trade.

¹ Find IG's trading hours here.

WhatsApp: Click here to chat to us on our official WhatsApp channel, 10am to 7pm (UTC+10), Monday to Friday

^IG International Limited is part of the IG Group and its ultimate parent company is IG Group Holdings Plc. IG Group established in London in 1974, and is a constituent of the FTSE 250 index.

The risks of loss from investing in CFDs can be substantial and the value of your investments may fluctuate. 72% of retail client accounts lose money when trading CFDs, with this investment provider. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how this product works, and whether you can afford to take the high risk of losing your money.

CFD Accounts provided by IG International Limited. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority.

IG provides an execution-only service. The information in this site does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result.

The information on this site is not directed at residents of the United States and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

IG International Limited is part of the IG Group and its ultimate parent company is IG Group Holdings Plc. IG International Limited receives services from other members of the IG Group including IG Markets Limited.

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