Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 73% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd. You should consider whether you understand how CFDs or our other products work and whether you can afford to take the high risk of losing your money.

OPTIONS

Trade Options on Micro E-mini S&P 500 and Micro E-mini Nasdaq 100 with Tickmill.

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Why TRADE OPTIONS
with Tickmill?

Our options trading gives our clients access to Micro E-mini S&P 500 and Micro E-mini Nasdaq 100!

  • Rapid execution speed.
  • Comprehensive suite of order types and trading tools.
  • Deposit requirement from $1,000.*
  • Dedicated professional client services.
  • Competitive commissions.
  • Multiple trading platform connections via API available.
  • Trading accessible from multiple devices.
*We also accept GBP and EUR.

Our Competitive
Commissions

Micro Options Contract

$1.30*

*Excludes Exchange and NFA Fees.
Here’s a glimpse of our available options. Check out all of the futures and options contracts that you can trade by clicking here.
Exchange Code Product Currency Contract Size Tick Size Tick Value Trading Hours Exchange
CL Crude Oil USD 1,000 barrels 0.01 $10 18:00 - 17:00 ET
ES E-Mini S&P 500 USD 50 x Index 0.25 $12.50 18:00 - 16:15 16:30 - 17:00 ET
GE Eurodollar USD 2,500$ x IMM Index 0.0025 $6.25 17:00 - 16:00 CT
GC Gold 100 oz USD 100 ounces 0.1 $10 17:00 - 16:00 CT
ZN US 10-Yr Note USD 100,000 USD 1/64 point $15,625 17:00 - 16:00 CT
**Source data: this content has been derived from CME, COMEX, CBOT, NYMEX and EUREX exchanges as at 16/12/2020. These details are updated by the various Exchanges so for up to date information please check on Exchange websites. Tickmill UK Ltd will not accept any liability for contract specific information, this table will be updated on a periodic basis.

At Tickmill we believe that having a competitive commission structure is vital. Combined with our intuitive and innovative multiple trading platform selections, Tickmill provides you with the tools necessary to make informed decisions.

CQG Platform

Trading Options Has Never Looked So Slick…
Find out more

Options

Looking for something specific?

Speak to our dedicated professional client services team for assistance with Futures and Options markets.

Start Trading Options
with Tickmill’s CQG Platform

1

REGISTER

Complete your registration and upload the required documents.

Register
2

CREATE AN ACCOUNT

Once approved, login to your client area.

Create An Account
3

MAKE A DEPOSIT

Fund your account via Bank transfer and choose your subscriptions.

Make A Deposit
4

TRADE

Login to your trading platform and start trading.

Trade
What are Options?
Unlike Futures, Options in their simplest form are an agreement between two parties, which gives the buyer the right but not the obligation to buy or sell an underlying product at a predetermined price prior to expiration.

There are two kinds of options:

A call option - the right to buy the underlying product at a predetermined price.

A put option - the right to sell the underlying product at a predetermined price.

Options are classified into a number of styles; the most common are:

American style options - may be exercised on any trading day prior to expiration.

European style options - may only be exercised at expiration.
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How to Trade Options
Once the risk of trading Options has been understood and you have formed an opinion on the underlying, you will need to select a strike price to trade. The strike price is the fixed price at which the buyer of the option can buy or sell the underlying if the option is exercised.

The cost of purchasing an option is referred to as the premium, which is the value that the buyer of the option must pay the seller.

Like futures, options are leverage products where you can speculate on the price movement of the underlying product without having to own the product itself. Some traders may use options to hedge their portfolio or as a risk-reduction strategy.

It is very important to understand the factors that can affect the price of the option.

Factors that affect the option price

The Underlying Market

THE UNDERLYING MARKET

In simple terms, the option price is affected by the value of the underlying product.
Time Until Expiry

TIME UNTIL EXPIRY

Provided all other elements remain constant, the value of an option will decline with the passage of time. As expiry nears, the chances of the underlying price moving significantly is reduced. This causes an acceleration in the decline of the option value.
Market Volatility

MARKET VOLATILITY

Volatility is a measure of speed and range of movement in the underlying price, the amount of volatility in the market can effect the price of an option significantly.

Frequently Asked Questions

Options Greeks measure the different risks that are associated with trading options. They are named after Greek letters and aim to help traders calculate the risk involved with their trades.

  • Delta – This measures the options price sensitivity to the underlying market. Traders can use this to calculate the impact of market movement on your options value.
  • Gamma – deriving itself from delta, this measure looks into how much an options’ delta moves for each point in the underlying market.
  • Theta – Related to time, this measure indicates the price decay of the option over time. If the option is close to the expiration date then its Theta will be higher than if the expiration date was further away.
  • Vega – Indicating the sensitivity of the option to the volatility of the underlying market, this measure indicates how much the value of the option will change for every 1% change in volatility.
  • Rho – The final measure indicates how much an options price will move in relation to interest rate changes. Should an interest rate change cause the option’s price to increase then the value of Rho will be positive. If the interest rate change causes a decrease in the price of the option then the value of Rho will be negative.


'Intrinsic value' is the amount by which the strike price of an option is profitable in comparison to the price of the underlying. An options is said to have an 'Intrinsic Value' if its immediate exercise would result in a financial advantage for the buyer. Options that meet this definition are said to be 'In-the-Money'. Where an option would not result in a financial advantage for the buyer upon immediate exercise, it is said to be 'Out-the-Money'.

Depending on the individual option specification (as defined by the exchange), the majority of option contracts that are deemed to be 'In-the-Money' at expiration will be automatically exercised resulting in a position in the underlying.

The exercise of an option will result in a position in the underlying futures contract, which will require the full initial margin relevant to the new position. You should ensure prior to the exercise that your account has sufficient funds available to cover such margin requirements. Failure to do so may lead to portfolio liquidation as outlined in the Terms of Business.

Consideration should be given prior to initiating an early exercise request. However, if you wish to early exercise your option(s) (subject to option type as explained above), please contact client services at [email protected] to initiate your request. Exercise instructions should be received prior to midday (12pm) UK time for same day processing. Instructions are subject to exchange procedures and will only be deemed as accepted once Tickmill receive confirmation that early exercise has been accepted/actioned. Once an option early exercise request has been recieved by Tickmill, the option can no longer be closed (via standard trading/execution activity).

Please note that it is at the discretion of Tickmill to allow the early exercise of an option contract and may be dependent on the account maintaining sufficient funds to meet the new underlying position initial margin requirements.

Contrarian instructions allow you to request that an 'In-the-Money' option (that would normally be exercised automatically) be abandoned instead (i.e. not exercised); or an 'Out-the-Money' option (that would normally be abandoned) be exercised instead. Contrarian instructions are not allowed on some option contracts, and clients should check the individual exchange specifications for more information.