CFD options trading
Trade on options price movements without owning the actual contracts. Go long or short on option premiums with leverage across indices, forex and US shares.
Why trade options CFDs with IG
Trade both directions
Go long or short on options premiums with equal ease. No complex borrowing arrangements needed to short options.
No assignment risk
Cash-settled only - never worry about early assignment or having to deliver underlying shares.
Pay zero spread
You don't need to pay a closing spread when you hold your options until their fixed expiry date.
Flexible sizes
Choose your exact exposure with customisable contract sizes rather than being locked into standard option contract multiples.
What is CFD options trading?
CFD options trading lets you profit from options price movements without actually owning option contracts. Instead of buying the right to purchase shares at a strike price, you're trading on whether an option's premium will rise or fall.
How it works:
- You choose an option (e.g. Apple $150 call)
- You go long if you think the option's price will rise, or short if you think it'll fall
- Your profit/loss comes from the difference in the option's premium price
- All positions are cash-settled - no shares change hands
Key difference: With traditional options, you pay a premium for the right to buy Apple at $150. With CFD options, you're trading on whether that premium itself will increase or decrease in value.
Example: An Apple $150 call option is priced at $5. You think it'll rise to $7, so you go long. If correct, you profit from the $2 difference - without ever having the right to buy Apple shares.
How CFD options work
Costs of trading options CFDs with IG
Spread
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Spreads depend on the underlying market conditions.
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They can vary significantly based on current trading volatility.
Premium
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Margin requirements represent the maximum possible loss when buying options.
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This is calculated using contract size, point value and option price.
Selling
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The margin for selling daily options mirrors the underlying market's CFD margin.
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This requirement ensures adequate coverage for potential trading losses.
Conversion
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Profits or losses are realised in the currency of the executed trade.
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Currency conversions may apply when your base currency differs from the trade.
Available markets
Trade options CFDs on these platforms
- IG Online platform
- IG Mobile app
Choose our online platform for a seamless and lightning-fast trading experience.
Try these next
Options trading
If you see opportunity in volatility, trade our flexible online CFDs on options. Speculate on a range of assets, and get the expertise and support of the world’s No.1 CFD provider1.
Contact
New clients
+65 6390 5133
accountopening@ig.com.sg
Existing clients
+65 6390 5118
helpdesk@ig.com.sg
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Disclaimers:
- All forms of investments carry risks, including the potential loss of all or part of your principal amount invested. The value of an investment product may rise or fall, and may also become valueless. Past performance is not indicative of future results. Please ensure that you fully understand, and are aware of, the risks and costs involved.
- Trading CFDs may not be suitable for everyone. CFDs are leveraged instruments and can result in losses that exceed deposits. Refer to the Risk Disclosure Statement and Risk Fact sheet.
- IG Asia Pte Ltd (Co. Reg. No. 200510021K)("IG") is regulated by the Monetary Authority of Singapore and holds a capital markets services licence.
- IG provides an execution-only service. The information in this advertisement does not contain (and should not be construed as containing) investment advice or an investment recommendation, or an offer of or solicitation for a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. You should consider your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
- The information on this site is not directed at residents of the United States or Belgium and is not 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.
- This advertisement has not been reviewed by the Monetary Authority of Singapore.
