Trade Options as CFDs

In Options CFDs trading, call and put Options CFDs reflect the expected direction of the underlying market:

• Call Options CFDs generally increase in value when the underlying market rises, allowing traders to take a bullish view on price movements without owning the underlying asset.
• Put Options CFDs generally increase in value when the underlying market falls, allowing traders to take a bearish view on price movements without owning the underlying asset.

Options CFDs can be a useful market to get to know, but they are generally considered better suited to advanced traders. Why? Because there are a lot of factors that can impact their price movements – and because option sellers can end up taking on a lot of risk.

If you're a beginner trader, you might want to consider indices, FX or shares instead.

With FOREX.com, you can trade Options CFDs through your trading account alongside thousands of other markets.

Options CFDs allow you to speculate on the price movements of underlying options markets without owning the option contract itself. You can access a wide range of Options CFDs covering multiple markets, with a variety of strike prices and expiries available.

To get started, open a live account or practice trading Options CFDs in a risk-free demo account.

Options CFDs can be used within a variety of trading strategies, depending on your market outlook and risk appetite.

Traders may use Options CFDs to express bullish or bearish views, manage exposure to existing positions, or seek opportunities in changing market conditions. As with any leveraged product, gains and losses can be magnified, so it's important to understand the risks involved before trading.

Options CFD trading allows you to speculate on changes in the value of an underlying option contract through a Contract for Difference (CFD).

Rather than buying or selling the option contract itself, you trade a CFD whose price is linked to the value of the underlying option. Your profit or loss is determined by the difference between the price at which you open and close the position.

Because Options CFDs are leveraged products, losses can exceed your initial deposit.

The price of an Options CFD is linked to the value of the underlying option and may be affected by several factors, including movements in the underlying market, the strike price, time remaining until expiry, market volatility, interest rates and, where applicable, dividends. As a result, an Options CFD may change in value even when the price of the underlying market has changed only slightly or not at all.

CFD Options have defined expiry dates and contract specifications, including strike prices and settlement terms. Upon expiry, open positions are settled based on the prevailing market price and any associated pending orders are cancelled. Clients wishing to maintain exposure beyond expiry must manually open a new position in a later-dated option contract, where available. Full contract details, including expiry information, are available within the FOREX.com trading platform.