In addition to our complete lineup of call and put options on the most popular currency pairs, IG Markets customers can now trade daily spot gold options and daily spot silver options.
Spot gold options and spot silver options join our full range of daily Call and Put options on USD/JPY, EUR/USD, GBP/USD, USD/CHF and EUR/GBP.
As with our forex options, these commodity options are perfect for the short-term trader. Also, just like our standard forex contracts, the quote is "all-in," so there is no additional commission* to worry about.
About options
An option is a type of derivative, that is, a financial instrument which is derived from the price of a different instrument. At IG Markets Inc. we offer contracts on two types of option, calls and puts:
- A call option is the right to buy a particular market at a fixed level on or before a fixed date. For example, the Daily GBP/USD call is the right to buy GBP/USD futures at a specific price (the 'strike price') at the end of or during the day.
- A put option is the right to sell a particular market at a fixed level on or before a fixed date. For example, the Weekly USD/CAD call is the right to sell USD/CAD futures at a specific price at the end of or during the week.
Options will be offered at a range of different strike prices, and option trades can be made in either direction. The price of an option is based on the level of the underlying market relative to the strike price, and the time the option has left to expiry.
It is important to remember that, with IG Markets Inc., options can never be exercized. You are only trading on their value.
*IG Markets Inc. is compensated through the bid/ask spread.
Updated: 09/15/08