Options
WHAT ARE OPTIONS?
An option is simply a contract giving the holder the right but not the obligation, to buy (call), or sell (put) the underlying asset at a pre-arranged price on or before a fixed date in the future.
The buyer of a Call Option acquires the right, but not the obligation, to buy the underlying asset at a fixed price. The buyer of a Put Option acquires the right, but not the obligation to sell the underlying asset at a fixed price. Options can also be sold or written. While this opens up a wide range of possibilities for the market participant, it also comes with potentially substantial risks and requires high product knowledge.
Options markets consist primarily of two types of participants, hedgers and speculators.
Hedgers - The purpose of hedging is to reduce the risk of loss or to lock in profits on any existing position. This is achieved by taking a position in the relevant futures or options contract that is equal and opposite of the client’s current physical or derivative position.
If you are interested in lowering your options commissions, please email us with your name and telephone number and one of our consultants will be in touch with you within 24 hours to discuss the commission levels and cost savings that we can offer you.