1. As long as there is a tradable option in the underlying, we trade all options on shares in the FTSE® 100, the DOW 30, the S&P 500, the Nasdaq 100 and some large cap Canadian and Australian stocks, as well as on a large selection of European options traded on Eurex or Euronext.
2. We charge a standard commission per lot, per side, on USD, EUR, CHF, GBP, CAD and AUD shares. There is no commission charge on expiry of a share option, but the standard commission will be charged for opening and closing positions. The charge is automatically applied to your account.
3. The standard commission charges are set out in the table above.
4. The margin requirement for buying an option contract is the opening price (or premium) multiplied by the number of shares.
For selling a share option, the margin required is the same as selling the equivalent number of shares in the underlying stock of the option. Margin off-setting can occur when you are long of a stock, and selling a call in the same stock, for example. In this case, margin is required only on one leg of the trade. The Margin Percentage for a particular share is calculated as a percentage of the opening value of the transaction. Margin Percentages for particular shares vary according to volatility and market conditions, and at the time of writing are as follows:
UK FTSE® 100 shares: 5% or 15%
American shares: 10% or higher
Australian shares: 5% or higher
We reserve the right to alter the Margin Percentage at any time.
5. Dealing hours are as follows:
UK share options: 08.00–16.30 (London time)
American share options: 14.30–21.00 (London time) †
European shares: Market hours for the relevant Exchange. Please ask for current details.
Australian share options: 10:00-15:55 (Sydney time) †
†It may sometimes not be possible to quote a particular share option if there is no price being published in the underlying market.
6. The last dealing day for share options is the third Friday of the contract month.
Share options not already closed by the client are closed on or after the last dealing day for those share options, on the following basis:
Call options at the closing price of the underlying share as quoted on the primary exchange at or after the market close on the last trading day, less the strike price, or at 0, whichever is greater. The price used will be the closing price as quoted on the primary exchange.
Put options at the strike price, less the closing price of the underlying share as quoted on the primary exchange, at or after the market close on the last trading day, or at 0, whichever is greater. The price used will be the closing price as quoted on the primary exchange.
7. If there is a corporate action, for example rights issue, affecting the underlying share, we will determine the appropriate adjustment, if any, to be made to the related share option. These adjustments will take account of the dilutive or concentrative effect necessary to preserve the economic equivalent of the rights and obligations of the parties under the relevant margin trade immediately prior to that event. Exchanges provide details of such corporate events online.
8. When you trade in a currency other than your base currency your profit or loss will be realised in that currency and will be booked to your account in that currency. As a default, we will automatically convert any positive or negative balance on your account in a currency other than your base currency to your base currency when your position is closed. You may change this default at any time via our trading platform or by calling us.
9. Individual share options can only be traded over the phone, these contracts are not available online.