Option trading on trading 212

Would love to have option trading abilities. Would this be ever considered in the near future? Seems to be a very popular option with robin hood and the rest.

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which type of options are you talking about however?

US options or EU options?

Options are popular in the US but no so much in the UK and Europe. They are leveraged derivatives, more complex then CFDs (which are not available on the US). It doesn’t really make sense to for us to offer them.

They might not be popular due to no broker with no commission/ fractional shares i is offering them. From what I hear robin hood and other mobile brokers in the US option trading has been quite popular

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Options are popular on RH because people want high leverage and CFDs don’t exist in the US. Options are more complex than CFDs and there’s no negative balance protection which means that you could lose more money than you have in your account. We are not going in that direction.

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I didn’t know that, I think this information is really critical and should be in the FAQs, so people are informed. And perhaps chose/learn to invest in CFDs until options arrive on T212 for the more adventurous!

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Options are not popular in Europe because they are not supported by most brokers

The inverse is also the case. most brokers don’t support it because there is not real enough demand for it with CFDs already being on the table as something simpler and straightforward.

Not true. Many brokers provide it in Europe. Check Trade Republic.

Options are very important, not just for growth or speculation, but for hedging risk for your long term investments.

I think Trading 212 should add them sooner than later.

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+1 for puts contracts used for hedging. You can of course use short CFDs for hedging as well, but I find options more flexible for that purpose

Options are also available in Saxo Bank and Interactive Brokers, but both brokers are more expensive for beginners than Trading212.

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One more here requesting option trading - backed with assets/cash in the account.

I mostly want to write put options to build a long position in a couple of investments I have a high level of confidence.

I agree that selling options is risky, but you can at least offer the possibility of buying options which is way more predictable