Vanilla Options

Trade in a different way using Vanilla Options

Vanilla Options give easyMarkets customers yet another way to trade their favorite instruments. Vanilla options are unique because they allow you to trade both the upward and downward movement of an instrument and both sides of the exchange - as a “buyer” or a “seller”. This method of trading lets you to know how much your investment is on the market and the duration of your trade. You can buy or sell the asset of your choice without the obligation of actually owning it.

Explore a different way of trading with easyMarkets Vanilla Options

 

Why Trade Vanilla Options with easyMarkets?

Trade Major, Minors and Precious Metals
Vanilla options allow you to trade on an instrument irrelevant if you think it might go up or down. Vanilla Options also let you to be on either side of transaction as the buyer or the seller.
Known Parameters
Markets can be unpredictable so controlling what you can, will give you some piece of mind. Trading vanilla options allows you to trade with a known level of risk over a pre-defined timeframe.
Trade Up or Down, Buy or Sell
Vanilla options give you a different level of choice, do you think an instrument will go up? Or do you think it will go down? Set the price you think the instrument will reach and the time you think it will take to reach it.
New Trader?
New to the markets? Knowledge about the tools available to you is instrumental in achieving your goals. easyMarket offers and extensive library of educational guides, videos and eBooks. Learn about dealCancellation* and Stop Loss.

First time trading Vanilla Options?

Vanilla options can be a very diverse way of trading. The main elements of a Vanilla Option is a Call or Put, the Strike Price and the Expiry. Vanilla options are the simplest member of the option family.

A bought Vanilla Option gives the buyer the right, but not the obligation, to buy (known as a ‘Call Option’) or sell (known as a ‘Put Option’) 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 abovementioned right on opening and this is collected from the account balance. A sold Vanilla Option gives the seller the obligation and the buyer the right to buy (known as a ‘Call Option’) or sell (known as a ‘Put Option’) an underlying financial instrument at a predefined rate (known as the ‘Strike’) at a pre-defined date (known as the ‘Expiry’).

When selling a Vanilla Option, the seller receives the Premium for the abovementioned obligation on opening and this is credited in the account balance. At the same time an Amount to Risk is collected, which acts as a Stop Loss and limits the maximum loss.

Due to their diversity vanilla options are used by both individuals and companies – it allows them both the forecast the movement of instruments. Of course 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 when trading options, since you will be attempting to calculate what the instrument’s price will be when the option reaches maturity.

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 do vanilla options 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. Trade more active instruments for a shorter amount of time or more stable ones for longer.

No matter what type of trading you chose with vanilla options, easyMarkets industry leading customer support is available to help you no matter what your level of trading expertise.

What our Traders say about us

Innovating since 2001

easyMarkets has been serving its customers since 2001. From the very beginning we have strived to offer our clients the most innovative products, tools and services.

Regulation and Security

easyMarkets is regulated by both ASIC and CySEC. We offer our clients negative balance protection and their funds are held in segregated accounts.

 

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