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Empower your trading with CFD options

CFD options

Trade the volatility of the top 11 equity indexes with CFDs on future options. Having the risk limited to the premium, by buying call and/or put options you can benefit from both rising (with a call option) and falling markets (with a put option).

When the option is ITM, at the expiry you will receive a credit equal to the difference between the strike and the settlement price. However, you can decide to close the position any time before expiry.

ITM (In The Money)

A call option is said to be ITM when the settlement price is higher than the purchased strike; on the other hand a put option is said to be ITM when the settlement price is below the strike price.

 
Strike price

The strike price is the price at which the underlying asset is bought or sold when the option is exercised.

 

Trade in rising and falling markets with CFD Options

CFD Options enable you to trade in both rising and falling markets, turning to your advantage market uncertainty and volatility. CFD options, available in the Cornèrtrader Platforms, will enable you to increase your exposure by taking limited risk, as your loss can only be limited to your initial investment.

 

Discover the benefits:

  • check-iconEach Lot equals 1 index and can be traded in multiple of 1 x index.
  • check-iconAutomatic cash settlement.
  • check-iconTake advantage of bearish/bullish markets with limited risk or to hedge portfolios.
  • check-iconCan be traded even in high volatile markets in comparison to a stop loss order.
  • check-iconAvailable on all the devices: desktop, mobile and tablet.
  • check-iconNo exchange fees.
  • check-iconNo bid/ask markups.

 

Long positions only

When trading CFD options only long positions are supported, i.e. no shorting/sell-to-open is allowed. However, you can sell back anytime before expiry.

 

No margin requirements

As CFD options are tradable as long positions, no margin is required, therefore there is no risk of stop-out. The premium will have to be payed up front and will be deducted directly from the account’s cash balance.

 

Strikes, maturities and expiry

Available strikes at the money will be +/- 25% with 90 days of maturity. All expiries are cash settled, meaning that at the expiring the profit will be booked cash in the account. All CFD options are European-style, meaning that they can be exercised only at the expiry.

However, open positions kept overnight are subject to a holding fee calculated on a daily basis.

 

Limit orders

Only limit orders are supported, you can edit or cancel them via the order module.

 

Over-the-counter (OTC)

CFD options are traded over-the-counter (OTC), meaning that the bank/dealer is the counterpart.

Learn more with our practical trading scenarios

   Bullish Market Scenario:

Are you expecting the market to rise but you are afraid that in the short term it could be subject to a drop? Buy a Call option to hedge the risk, by fixing it at the cost of the premium to enter into this position.

   Bearish Market Scenario:

You believe the market will go down but you think you can’t benefit from this trend without taking a high risk? By using CFD options now it is possible to limit this risk! Buy a Put option and start to benefit from falling a market having your maximum risk limited to the premium you pay.

 

 

Click here to download our guide

 

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