Saxo Capital Markets | Tel: +44 20 7151 2024 | Email: [email protected] | Website: uk.saxomarkets.com 1 Eq 0 TRADING STOCK OPTIONS ON THE SAXOTRADER PLATFORM Saxo Capital Markets UK Limited 26th Floor 40 Bank Street Canary Wharf London E14 5DA United Kingdom Web:uk.Saxomarkets.com E-mail: [email protected]
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TRADING STOCK OPTIONS ON THE · By clicking on Trading > Option Trading > Contract Options Chain you can view the Stock Options chain. 10. Enter the name or ticker of the target stock
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6. The Trade Ticket window opens with key details to help you place a trade order.
Expiry: The date at which the option expires
Strike: The exercise price of the option
Call/Put:
Call: The right to buy the underlying stock, at a specified price and a specified date.
Put: The right to sell the underlying stock, at a specified price and a specified date.
Quantity: Number of contracts that you want to buy or sell.
Buy/Sell: a way to open a call or put position in option transactions.
Buy to Open: To place an option trade, where the option position is not held short in the account during the transaction.
Sell to Open: To place an option trade by selling or establishing a short position in an option.
Entry type: Select the order type
Price: Choose the price you would like to buy or sell
Duration: The duration period of the order is valid for “Day Order”- the order will work until the end of the day.
Take Profit / Stop Loss: Place related limit or stop orders to your position
Exercise: The type of option is shown here. Ameri-can type options can be exercised any time prior to expiry whereas European type options can only be exercised at expiry.
Underlying: The underlying share of the options contract.
Contract size: The number of shares per options contract.
IMPORTANTImportant: Access to real time prices for stock options and the underlying stocks may require 2 different subscriptions. Note that for US stock options a subscription is also required to receive delayed data.
PLACING STOCK OPTION ORDERS USING THE CONTRACT OPTIONS CHAIN
9. By clicking on Trading > Option Trading > Contract Options Chain you can view the Stock Options chain.
10. Enter the name or ticker of the target stock option into the “Instrument” field in order to view the Stock Options Chain for the particular instrument.
The Contract Options Chain module allows you to continuously monitor option prices. It consists of a grid of “Bid” and “Ask” option prices arranged by strike level and expiry date. Prices for “Put Options” for the selected contract are on the right hand side and prices for “Call Options” are on the left.
Expiry dates are shown along the top of the grid of prices. The expiry dates are fixed dates i.e. they do not move forward every day. You can use the scroll bar or arrow icon to expand sections to see additional dates.
CHART MODULE11. In order to open the Chart module for the underlying stock, select Trading > New Chart. Select the underlying Stock of your choice.
To select an instrument use the “Instrument” field at the top left hand side of the module.
To find a strike price look at the centre of the screen.
Use the arrows at the centre of the module to scroll up and down between strike levels. To centre the board at the current at-the-money (ATM) strike level, click Reset (ATM) at the top of the module. Multiple strike prices may be displayed using the “Strikes” drop down menu.
To trade, click the price button for the strike and maturity you want. The Contract Options Trade module appears with all the information pre-populated. Verify the details and click Place Order.
Each row in the grid contains information and price buttons specific for that combination of strike level and maturity date. The prices update in real time. As markets move, prices at new strike levels will appear and become active. Market moves will result in some old strike levels periodically being removed, as they become either deeply in or deeply out-of-the-money.
PLACING STOCK OPTION ORDERS USING THE CONTRACT OPTIONS CHAIN
Our products are traded on margin and it is possible to incur losses that exceed your initial deposit.
This material should be considered as a marketing communication under the Financial Conduct Authority’s rules. Saxo Capital Markets UK Limited (“SCML”) undertakes reasonable efforts to ensure that any information published in this communication is reliable. SCML makes no representation or warranty, or assumes no liability, for the accuracy or completeness of any information contained in in this communication.
SCML provides an execution only service and this communication does not take into account any particular recipient’s invest-ment objectives, special investment goals, financial situation, and specific needs and demands and nothing herein is intended as a recommendation for any recipient to invest or divest in a particular manner and SCML assumes no liability for any recipient sustaining a loss from trading in accordance with a perceived recommendation.
Saxo Capital Markets UK Limited is authorised and regulated by the Financial Conduct Authority. Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871.