Options trading
If you see opportunity in volatility, trade our flexible online options. Speculate on a range of assets and get the expertise and support of the world’s No.1 trading provider.1
Call 0800 195 3100 or email newaccounts.uk@ig.com to talk about opening an account.
What is options trading?
Options trading is the act of buying and selling options. These are contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a set price within a set timeframe.
With us, you can trade options in two ways:
- Trade listed options with a US options and futures account. Here, you can implement basic or complex options strategies
- Trade options with spread bets or CFDs. This involves taking a position on the underlying options price, not entering into the options contract directly or employing complex strategies
Why trade options with us?
Find an option to suit you
Trade listed options on thousands of US shares, ETFs and futures, or trade underlying index, forex, or shares options using spread bets or CFDs
Pay zero spread on expiry
Buy and sell options with no closing spread when you hold them until their fixed expiry date
Discover new opportunities
Develop trading strategies using a variety of US-listed options, or by pairing options trades with CFDs or spread bets
Trade on volatility itself
Take a position on rising, falling and even flat markets in the UK and all over the world
Ways to trade options with us
Trade listed options or use spread bets or CFDs on our award-winning trading platform.2
| US-listed options and futures | OTC: spread betting and CFD trading | |
| Main features | Listed options and futures are both derivative products. Options are contracts between two parties to exchange 100 shares at a specific price by a certain expiration date. Futures enable you to speculate on the upward or downward direction of a futures contract | Spread betting stakes an amount of money for every point the underlying market moves. CFDs are the buying and selling of contracts for difference. Both spread bets and CFDs are leveraged, meaning you put down a deposit to gain exposure to a position, with profit and loss calculated on the full position size. |
| Risks |
|
Buying call or put options, your risk is always limited to the margin you paid to open the position. However, when selling call or put options your risk is potentially unlimited |
| Traded in | $-denominated contracts | Spread bets: £ (or other base currency) per point CFDs: contracts |
| Tax | No stamp duty. CGT may apply. Tax deductible losses are useful for hedging.3 US tax may also apply | Spread bets: no stamp duty. Profits are generally tax-free in the UK3 CFDs: no stamp duty Tax deductible losses are useful for hedging3 |
| Costs | From $0.85 to open and $0 to close. Commissions capped at $10 per leg for equity options | Spread bets: commission-free (only pay the spread)* CFDs: commission free (except on shares) |
| Platforms | Web and mobile platforms | Web and mobile platforms |
| Learn more | Learn more |
*Other fees may apply
What are options?
Options are contracts that give you the right – but not the obligation – to buy or sell an underlying asset before a certain expiry date. You can use them to speculate on the price of a financial market, and in some cases its volatility too.
What are options?
Options are contracts that give you the right – but not the obligation – to buy or sell an underlying asset before a certain expiry date. You can use them to speculate on the price of a financial market, and in some cases its volatility too.
How do I trade options?
- Discover how options work
- Learn the differences between buying options and selling them
- Choose a trading strategy
- Create an account
- Open your first position
Benefits of trading options in the UK
Choose the option to suit you from our daily, or weekly, monthly and quarterly timeframes.
Listed options
Leveraged or non-leveraged exposure with more access to options strategies
Over-the counter options
For a flexible, highly leveraged way to trade options – using spread bets and CFDs
Best platforms2
Open positions on our award-winning platforms2 with innovative capabilities and risk-management tools
Go long, short or non-directional
Speculate based on your bullish or bearish stance, or use options strategies for a neutral market assumption
Lower spreads
Trade daily options with reduced spreads – the same as on regular spot markets
Flexible leverage
Get the leverage you want by choosing your strike and trade size
Limited risk
Cap your maximum risk when you buy daily options – you’ll never lose more than the margin you pay to open
Greater freedom
Hold daily long options positions even when the market moves against you. When buying call options, your risk is limited to the premium you paid.
No overnight funding
Pay less for long-term (ie weekly, monthly or quarterly) positions, thanks to zero overnight funding
Greater control
Develop simple or complex options strategies for greater control over your trading
Risks of trading options
Trading on margin
Trading on margin magnifies both your potential profits and possible losses. You could lose more than your initial outlay.
Currency risk
If you deposit or withdraw funds in a different currency than USD, an adverse move in exchange rate could reduce the real value of your funds.
Expiration risk
US-listed options can be exercised at any time up to expiry, so you may have to buy or sell the full amount of the underlying asset to fulfil the contract’s terms.
Open an account now
*Demo accounts are only available for spread betting and CFD trading.
Open an account now
Fast execution on a huge range of markets
Enjoy flexible access to 15,000+ global markets, with reliable execution
Deal seamlessly, wherever you are
Trade on the move with our natively designed, award-winning trading app
Feel secure with a trusted provider
With 50 years of experience, we’re proud to offer a truly market-leading service
*Demo accounts are only available for spread betting and CFD trading.
Open an account now
Open an account now
Fast execution on a huge range of markets
Enjoy flexible access to 15,000+ global markets, with reliable execution
Deal seamlessly, wherever you are
Trade on the move with our natively designed, award-winning trading app
Feel secure with a trusted provider
With 50 years of experience, we’re proud to offer a truly market-leading service
Try these next
We’ve been a market-leading online trading and investment provider for 50 years.
Start trading CFDs to discover opportunities on 15,000+ markets.
Take advantage of movement in currency prices – with over 80 FX pairs to choose from.
1 Based on revenue (published financial statements, 2023).
2 Best trading platform as awarded at the ADVFN International Financial Awards and Professional Trader Awards 2024. Best trading app as awarded at the ADVFN International Financial Awards 2024.
3 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.
Connect with us
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Professional clients trading spread bets and CFDs can lose more than they deposit.
Options and futures are complex instruments which come with a high risk of losing money rapidly due to leverage. They’re not suitable for most investors. Before you invest, you should consider whether you understand how options and futures work, the risks of trading these instruments and whether you can afford to lose more than your original investment.
Trading stocks and shares ‘on margin’ within a US options and futures account – meaning that you only finance part of the cost of acquiring a position in a security – carries additional risks over buying securities on a fully funded basis and may result in losses exceeding your original investment. Trading on margin will also result in additional costs to you as the investor and any securities purchased using margin may be held as collateral by the lender, restricting both your rights as shareholder, and your ability to use the securities until the margin trade is closed. You should familiarise yourself with these risks before trading on margin.
The value of shares, ETFs and other ETPs bought through a share dealing account, a US options and futures account, a stocks and shares ISA or a SIPP can fall as well as rise, which could mean getting back less than you originally put in. Past performance is no guarantee of future results. Some ETPs carry additional risks depending on how they’re structured, investors should ensure they familiarise themselves with the differences before investing.
Share dealing and IG Smart Portfolio accounts provided by IG Trading and Investments Ltd, CFD accounts and US options and futures accounts are provided by IG Markets Ltd, spread betting provided by IG Index Ltd.
IG is a trading name of IG Trading and Investments Ltd (a company registered in England and Wales under number 11628764), IG Markets Ltd (a company registered in England and Wales under number 04008957) and IG Index Ltd (a company registered in England and Wales under number 01190902). Registered address at Cannon Bridge House, 25 Dowgate Hill, London EC4R 2YA. IG Markets Ltd (Register number 195355), IG Trading and Investments Ltd (Register Number 944492) and IG Index Ltd (Register number 114059) are authorised and regulated by the Financial Conduct Authority.
The information on this site isn’t directed at residents of the United States, Belgium or any particular country outside the UK and isn’t 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.