Trade VANILLA OPTIONS
Trade VANILLA OPTIONS
Vanilla options give easyMarkets customers yet another way to trade their favorite instruments. Vanilla options allow you to trade both the upward and downward movement of an instrument without the obligation of actually owning it. This trading method allows you to place a call or put option at a pre-determined strike price and select the duration of your trade.
Vanilla options give easyMarkets customers yet another way to trade their favorite instruments. Vanilla options allow you to trade both the upward and downward movement of an instrument without the obligation of actually owning it. This trading method allows you to place a call or put option at a pre-determined strike price and select the duration of your trade.
Trade Different Markets
Trade Different Markets
Vanilla options allow you to trade both upward and downward price movements of selected forex currency pairs, gold and silver.
Hedge Against Volatility
Hedge Against Volatility
Vanilla Options are a great tool for those looking to hedge their exposure in a particular asset.
No Swap Fees
No Swap Fees
You can hold an option position for up to six months without incurring any swap charges on overnight positions.
Full Control
Full Control
With vanilla options, you have full control over your trades with a known level of risk over a pre-defined timeframe.
Trade Different Markets
Vanilla options allow you to trade both upward and downward price movements of selected forex currency pairs, gold and silver.
Hedge Against Volatility
Vanilla Options are a great tool for those looking to hedge their exposure in a particular asset.
No Swap Fees
You can hold an option position for up to six months without incurring any swap charges on overnight positions.
Full Control
With vanilla options, you have full control over your trades with a known level of risk over a pre-defined timeframe.
What are Vanilla Options?
Vanilla options can be a very diverse way of trading. The main characteristics of a vanilla option is a Call (bought when the underlying asset is expected to increase in price) or Put (bought when the underlying asset is expected to decrease in price), the Strike Price (the predetermined price by the trader to buy (call) or sell (put) an instrument) and the Expiry (the date at which the option expires and closes).
A bought vanilla option gives the buyer the right, but not the obligation, to buy a Call option (when the price direction is moving up) or Buy a Put (when the price direction is moving down) an underlying financial instrument at a predefined rate (known as the ‘Strike’) at a pre-defined date (known as the ‘Expiry’). When buying a vanilla option, the buyer pays the Premium for the above-mentioned right on opening, which is collected from the account balance.
Markets to Trade
Currency Pairs
Forex is a massive global market that is open 24
hours a day, 5 days a week, which means there’s
always a market session to trade. With easyMarkets,
selected forex pairs can be traded as vanilla
options.
Gold
With vanilla options, you can trade the world’s most
exciting metal without having to hold the physical
product. Gold is considered a safe haven and is
often used to hedge against economic uncertainty.
Silver
Like gold, silver is also considered a safe store of
value. However, compared to gold, silver has more
industrial applications, including jewelry,
electronics and batteries. With easyMarkets, you can
trade silver as a vanilla option.
Benefits of
Trading Vanilla Options
with easyMarkets
Experience one of the simplest online options trading platform in the industry
Trade options on timeframes that suit you from 1 day to 6 months
No overnight funding charges
Trade without margin
Fixed risk, unlimited potential returns
Benefits of Trading
Vanilla Options
with easyMarkets
Benefits of Trading Vanilla Options with easyMarkets
Benefits of Trading Vanilla Options with easyMarkets
Experience one of the simplest online options trading platform in the industry
Trade options on timeframes that suit you from 1 day to 6 months
No overnight funding charges
Trade without margin
Fixed risk, unlimited potential returns
How to Trade Vanilla Options
01
Create and fund your account
If you don’t have an easyMarkets account, you can create an account here. After you have a verified account, make a deposit.
02
Select the product you want to trade
We have a variety of products you can trade, including selected forex pairs, gold and silver.
03
Input your entry
Choose the amount you want to trade.
04
Input your exit targets
Select your strike price and expiry date.
05
Decide on your trading direction
Select whether you anticipate the price of the instrument will go ‘up’ or ‘down’.
06
Monitor your open trade
Monitor your open position frequently to assess the performance. You can close your position at any time up to the expiration date.
Vanilla Options FAQs
Buying a call gives the holder the right but not the obligation to buy a trading instrument at a given date and strike price in the future. To initiate a call option, the holder must pay a premium up front to the option seller. The buyer’s potential returns are unlimited as the price increases, and the maximum loss is limited to the price paid for a trading instrument.
Buying a put gives the holder the right but not the obligation to sell a trading instrument at a given date and strike price in the future. The seller makes their return from the premium it receives from the buyer, and their losses mount the more the price increases.
This is the price, predetermined by the trader, to buy (call) or sell (put) an instrument.
Selected forex currency pairs can be traded as vanilla options, plus gold and silver.
You can trade options 24/5*. Each day the options expire at 14:00 GMT (10:00 New York time).
- Forex options have a daily break from 20:30-22:30 GMT
- Gold and Silver options open every Monday at 5:00 GMT and have a daily break from 20:30-22:30 GMT
The ability to set your strike price, maturity and type of instrument you would like to trade - makes vanilla options a great and diverse choice for both new and experienced traders. Not only does options trading offer you a great way to manage your risk, but with the different maturity levels and types of instruments, it also allows you to fit it into different types of trading.
To be able to understand the movement of instruments and markets, one of your biggest assets will be knowledge – and you can learn everything you need to know through easyMarkets Learn Centre. Knowing what macroeconomic events affect the instruments you trade is imperative with options trading, since you will be attempting to calculate what the instrument’s price will be when the option reaches maturity.
