When spread-betting on options, you can go Long and Short on both Calls and Puts. Please read the below examples to learn how this works and understand the associated risks. A call option gives the holder the right to buy an underlying asset at a certain price called the strike at a given point in the future.

Want to Day Trade? Try Binary Options Or Spread Betting | Investopedia

It is important to note that this is only a right and not an obligation and therefore would depend on whether the option has intrinsic value on the day of expiry as to whether the purchaser decided to enact it. For example if you believe there is likely to be a rally in gold prices over the coming month, but were reluctant to hold a long futures position due to the downside risk, you could instead buy a spread bet on a call option for gold and limit your liability whilst still maintaining upside exposure.

To do this you could buy a Gold Oct call option spread bet which has a price of Suppose the underlying is trading at on 1st Sept, you could buy this option at Gold is below on day of expiry. Going short or writing a call option gives the writer the chance to gain some income from static or falling markets.

When going short the trader is taking the other side of a long call trade, therefore he has unlimited liability but only a limited gain. However, short options can be beneficial as either a hedge or part of a greater trading strategy as you could capitalise on the time and volatility premium attached to each option. For example suppose you have an underlying long position in a share traded in the UK, for example Barclays. If you believe that in the short term the share price of Barclays was likely to fall or stay in a specific range, you could supplement your equity position by selling a call option and collecting the premium associated with it as the time decays away to its expiry.

If Stock options spread betting was trading at p on April 1st you may decide to sell 10 lots of a p May Call option fx options overnight could be trading at 6p, i.

You would then have either limited your loss or potentially made money in a market that would normally be bad for your underlying cash position. It is important to remember that writing call gujarat forex vadodara is a high risk strategy which can result in large capital loses and unlimited exposure. A put option gives the holder the right to sell an underlying asset at a certain price called the strike at a given point in the future.

For example if you believe there is likely to be a fall in the value of the UK over the next two months but were worried about going short on the underlying index due to your potential unlimited liability, you could instead buy a spread bet on a put option for the UK and limit your liability whilst still maintaining your full exposure to any fall in the index.

To do this you could buy a UK June put option spread bet which has a price of 40 — 44, due to expire forex signal professional apk the third Friday in June.

UK is above on day of expiry.

Going short or writing a put option gives the writer the chance to gain some income from static or rising markets. When going short the trader is taking the other side of a long put trade, therefore he will have a large liability but only a limited gain.

However, short options can be used to hedge an underlying short position, in conjunction with a short call or simply as a standalone bet with the aim of stock options spread betting income. Terms and Agreements Self Exclusion Risk Notice Sitemap Contact Us Spreadex Social Media Sitemap Mobile Site Careers. Get Started Get Started What is spread betting? What is CFD trading? How to place a spread bet. How to open an account.

Options Product Details | Spread Betting | IG UK

Stop losses and limit orders. Sign up for information. Bonds and Interest Rates. Spreadex In The News.

Home Financials Range of Markets Options Trading Guide Spread Betting Examples. SPREAD BETTING EXAMPLES OPTIONS When spread-betting on options, you can go Long and Short on both Calls and Puts. OPTIONS EXAMPLE 1 LONG CALL A call option gives the holder the right to buy an underlying asset at a certain price called the strike at a given point in the future.

OPTIONS EXAMPLE 2 SHORT CALL Going short or writing a call option gives the writer the chance to gain some income from static or falling markets. OPTIONS EXAMPLE 3 LONG PUT A put option gives the holder the right to sell an underlying asset at a certain price called the strike at a given point in the future.

OPTIONS EXAMPLE 4 SHORT PUT Going short or writing a put option gives the writer the chance to gain some income from static or rising markets.

Sign up to our weekly Trading Update email. Please enter a valid email address. Spread betting advantages Controlling your risk Spread betting examples. Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Excludes binary bets where Spreadex is licensed and regulated by the Gambling Commission, licence number Spreadex supports Responsible Gambling.

Options Product Details | Spread Betting | IG UK

They may not be suitable for everyone so please ensure you fully understand the risks involved. This site is only intended for those persons of 18 years or older. Click here to see our Privacy Policy. The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.