All trading involves risk. Losses can exceed deposits.

Contact us

New to IG: +442078926181
Existing clients: +442078926180
Email: newaccounts.en@ig.com

Start trading now

It’s free to open an account and no downloads are required to use our web-based platform.

Free demo account

Practise trading with $10,000 virtual funds.

Options

Trade on volatility with our comprehensive, flexible options

Live prices

Markets Sell Buy Change Updated
FTSE 100
liveprices.javascriptrequired
-
-
-
Germany 30
-
-
-
-
Wall Street
-
-
-
-
Spot FX EUR/USD
-
-
-
-
Spot FX GBP/USD
-
-
-
-
US Light Crude
-
-
-
-

Prices above are subject to our website terms and conditions. Prices are indicative only.

Why trade options with IG?

  • Trade on volatility

    Adapt options for market situations, including rising, falling and sideways markets

  • Trade with limited risk

    Know your maximum potential loss from the outset 

  • Timeframes to suit you

    We offer daily, weekly, quarterly and future positions

  • Competitive pricing

    Take advantage of low spreads on a wide range of popular markets – see product details 

  • High leverage rates

    Utilise low margins and high leverage rates, but remember leverage comes with increased risk

  • Cutting-edge chart technology

    Analyse the markets with pattern-identification technology and a wide range of technical indicators 

Popular options markets

Market  Contract size
Wall Street $10/point
 
FTSE 100 $10/point
 
EUR/USD $10/point
 
Spot Gold $100
 

 

See all options markets and our full product details

What is options trading?

Options allow you to trade on the future value of an underlying market. They give you the right, but not the obligation, to buy (known as a call option) or sell (a put option) at a set price (known as the strike price) on or before a certain date. 

They’re an incredibly versatile product, allowing you to take a short-term view on volatility as well as directional movement. 

Options can also be used to manage risk in your portfolio. Investors with long positions on stocks or commodities can hedge against a drop in the underlying price by taking out a put option. A key advantage of this tactic is that your maximum loss is known from the outset.

See an example of a call option

Select a market

You're interested in trading a FTSE 100 option because you believe the market is volatile at the moment. The FTSE is currently trading at 6135.3. 

Sell or buy

You think that if the FTSE 100 can break through the 6170 level, then it will continue to rise even more sharply. But you don’t want to risk a regular FTSE 100 trade because if the market drops then it may drop sharply.

You choose to ‘buy’ £10 per point on a ‘FTSE 6170 Call option’, which we are currently pricing at 15.6 – 20, at the offer price of 20.

What does this mean?

You now have the right, but not the obligation, to buy £10 per point on the FTSE 100 at a price of 6170, rather than the current price of 6135.3.

For this right, you have paid a premium spread of 20 points, meaning you will be in the money once the FTSE 100 moves above your break-even level of 6190 (6170 + 20). 

Alternatively, you could choose to ‘sell’ this option at the bid price of 15.6. This would give you the right, but not the obligation, to sell the FTSE 100 when it reaches 6170, with a break-even level of 6154.4.

Closing your trade

Over the course of the day the FTSE rallies strongly and is trading at 6202 at 4pm, so you decide to close your trade and take your profit.

Calculating profit / loss

Profit / loss is calculated based on the difference between your opening and closing prices, minus the premium you paid, all in points.

In this case: 6202 – 6170 – 20 = 12

You bought £10 per point, and the market moved in your favour.

Therefore your gross profit is: 12 x £10 = £120

What if...

Similarly, if the market had not reached the 6170 level, your option would finish without value and you would lose 20 (premium) x £10 = £200.

Try it for free

Open a free demo account and practise trading with £10,000 virtual funds, absolutely risk-free.

Or learn how to find markets, place trades and make the most of your trading with our free interactive platform preview.

See an example of a put option

Select a market

You're interested in trading a FTSE 100 option because you believe the market is volatile at the moment. The FTSE is currently trading at 6135.3

Sell or buy

You think that if the FTSE 100 falls through the 6110 level, then it will continue to fall even more sharply. But you don’t want to risk a regular FTSE 100 trade because if the market rallies then it may rise sharply.

You choose to ‘buy’ £10 per point on a ‘FTSE 6110 Put option’, which we are currently pricing at 18.4 – 23.7, at the offer price of 23.7.

What does this mean?

You have bought the right, but not the obligation, to sell £10 per point on the FTSE 100 at a price of 6110, rather than the current price of 6135.3.

For this right, you have paid a premium spread of 23.7 points, meaning you will be in the money once the FTSE 100 drops below your break-even level of 6086.3 (6110 – 23.7). 

Alternatively, you could choose to ‘sell’ this option at the bid price of 18.4. This would give you the right, but not the obligation, to buy the FTSE 100 when it reaches 6110, with a break-even level of 6128.4.

Closing your trade

Over the course of the day the FTSE drops consistently and is trading at 6072 at 4pm, so you decide to close your trade and take your profit.

Calculating profit / loss

Profit / loss is calculated based on the difference between your opening and closing prices, minus the premium you paid, all in points.

In this case: 6110 – 6072 – 23.7 = 14.3

You bought £10 per point, and the market moved in your favour.

Therefore your gross profit is: 14.3 x £10 = £143

What if...

Similarly, if the market had rallied and never dropped to 6110, your option would finish without value and you would lose 23.7 (premium) x £10 = £237.

Try it for free

Open a free demo account and practise trading with $10,000 of virtual funds, absolutely risk-free.

Or learn how to find markets, place trades and make the most of your trading with our free interactive platform preview.

What are the risks of options trading?

Although options are limited risk, there's still the potential to make substantial losses as well as gains.

Open a free demo account today to practise with virtual funds.

Option FAQs

How long can I hold an option for?

Options are suited for both short and long-term trading. Our offering ranges from daily options, which expire at the close of the underlying market on the day you place your trade, to weekly, monthly and quarterly. 

What factors impact the price of an option? 

There are several factors that will impact the price of an option:

  • The level of the underlying market compared to the strike price
  • The time the option has left to expiry
  • The underlying volatility of the market

Can options be used to hedge?

Yes. Investors with long positions on stocks, commodities and more can hedge against a drop in the underlying price by taking out a put option