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If the option is in the money, you may wish to close it before the expiry to maximise profit. Or if you aren’t in profit you can leave your position open to expiry, and, if it fails to move into profit, only lose the price you paid to open.
Ways to trade options in the UK
There are three ways to buy and sell options in the UK:
1. Trade options with spread betting
A spread bet on options will mirror the underlying option trade. An option to buy £10 per point of the FTSE call with a strike price 7100 would earn you £10 for every point that the FTSE call moves above 7100 – minus the margin you paid to open the position.
In the UK, you can spread bet on options alongside thousands of other markets, and there’s no tax to pay on your profits.2
Find out more about spread betting
2. Trade options with CFDs
As with spread bets, when you trade options with CFDs, your trade mirrors the underlying options trade.
You need an account with a leveraged trading provider, like IG, to trade CFDs. Find out more about CFD trading.
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