You can trade ETOs through OpenMarkets by opening a trading account and applying to trade options (download Options Application). Currently ETOs are only available to trade through the Pulse platform. Pulse includes an Options Price Quotation and Calculator tools, as well as a more sophisticated Order Pad. You can apply for a Pulse subscription on your initial account application for an additional fee – see Software Fees.
What are Options?
Options, when used wisely, can be a great way to protect, grow and diversify your investment portfolio. They are popular among investors because they can provide benefits regardless of share market conditions. An option is exactly that – an option – that an investor has when trading the stock market. It’s a contract that gives you the right, but not the obligation, to buy or sell an underlying asset (stock, index or ETF) at a predetermined price (strike price) on or before a certain date.
Exchange Traded Options (ETOs) are a type of Option that are publicly traded on the ASX. They offer an opportunity to profit from movements in the price of an underlying security, such as a share or index.
What type of ETOs can you trade at OpenMarkets?
You can access the following transaction types with OpenMarkets:
1. Bought Puts & Calls
2. Covered Calls
Call options gives you the right, but not the obligation, to buy a security or to ‘call’ it away from its owner (another trader/person) at a certain price within a specific period of time. Buyers of Calls are typically bullish about the direction of the market and/or about a particular stock’s prospects.
Put options give you the right, but not the obligation, to sell a security or to ‘put’ it to someone else at a at a certain price within a specific period of time. Buyers of Puts generally bearish on the market and/or a stock’s potential, and hope to benefit from an expected fall in a stock before the option expires.
How much does ETO Trading cost?
$28 (up to $10,000 trade value) or 0.28% per trade. Plus ASX Clear Charges. View Pricing for more information.