More ways to trade market moves

Our options CFDs are available exclusively on the MetaTrader 5 trading platform. MT5 provides advanced charting tools, fast execution and a wide range of order types, allowing you to analyse the market and manage positions efficiently from desktop or mobile device.

Your option CFD will be automatically closed at expiry and cash settled. You will not receive the underlying futures position, rolling position or physical delivery. The final expiry price depends on how the underlying futures or cash price (depending on the option) compares with the option’s strike price at the expiry time.

For a call option, the expiry price is calculated as the underlying price minus the strike price, or zero if this amount is negative.

Call = max (0, underlying price − strike price)

For a put option, the expiry price is calculated as the strike price minus the underlying price, or zero if this amount is negative.

Put = max (0, strike price − underlying price)

You can only open buy positions (go long) in options CFDs. After opening a trade, you may close it at any time before the last trade date and time by selling the position, or let it expire automatically at the set expiry date and time.

Your options CFD positions will not be liquidated if your margin level falls below the liquidation threshold, as they are fully margined and unrealised profit or loss is not included in the margin calculation. However, any non-option CFD positions you hold may be liquidated according to our standard liquidation rules.

If there is enough demand for a particular option, we may be able to make it available. Typically, this requires a minimum combined commitment of 5,000 ounces. If you cannot meet this amount individually, you can still submit a request for a smaller size, and if other clients are interested in the same option, the total demand may reach the required level.

When you buy a CFD futures contract, your profit and loss move point for point with the market. If the market drops, your losses can grow and, in theory, become unlimited. You may also face margin calls or liquidation if the position moves against you.

When you buy a CFD option, your risk is capped from the start. The most you can lose is the price (premium) you paid for the CFD option. No matter how far the market moves against you, you cannot lose more than that initial cost.

In simple terms, the key difference is:

CFD futures = unlimited downside risk

CFD options (buyers) = limited, predefined risk

Several factors can affect a CFD option’s price:

• Underlying market price: Changes in the underlying market can increase or decrease the value of call and put options.
• Time until expiry: Options generally lose time value as they get closer to expiry.
• Implied volatility: Higher expected volatility will generally increase an option’s value.
• Interest rates and other costs: Interest rates, dividends and carrying costs, such as storage for commodities, can influence option prices.
• Supply and demand: Trading activity, liquidity and wider market conditions can also affect pricing.

Yes. A CFD call option can lose value even if the underlying market rises, as its price is also affected by factors such as time until expiry and implied volatility.

For example, if GCV6 is at 4,418 when you buy a CFD call option with a strike price of 4,700 and pay a premium of 42, the underlying market could rise without the option increasing enough in value to cover the premium paid. You could therefore still make a loss.