Option trading?

Will you add option trading?

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It’s not in our plans for this year.

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Although I’m sure you have a lot in your pipeline right now, if you guys have the ‘option’ (pun intended), please do try to prioritize it for this year.

Once Robin Hood lands in UK and EU later this year, this might be a deciding factor for new and maybe some existing users.

Sorry if customers are always greedy for even more features! :see_no_evil:

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it has been explained on other threads that options are much riskier than CFDs and much trickier to deal with, which is why its not a priority compared to features already undergoing work. There is a lot of stuff already in the works that they can’t just drop which are aimed at improving things for all users and not just a select few.

Options will just have to wait a year for further consideration.

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Once robinhood lands in EU 90% of CFD brokers are gonna drop really really hard in business. There is nobody who provides option tading as of now.

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Who in Europe cares about options trading???..not a single person I know is interested. In the US the WSB crowd uses options to take more risk because they don’t have cfd’s and leverage.

@vargamon there’s Trade Republic in Germany, they offer options/derivatives, give them a try!

Other than that, there’s plus500 also offering options indirectly.

But I agree with what you say, options might be the deciding factor in the future because of how lucrative they are…

There is no way i can agree with you on that. CFDs are the most dangerous trading instruments. Wtih margins and leverage you can blow your whole account in matter of seconds.

With options you lose only what you put it. And options are also leveraged.

@saifali Yes plus500 has CFD options, they have preset options which you bet on. So its not a “true” option.

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Agree with you on that, CFDs turned out to be really dangerous for me, I stopped my trades there and lost ~50% in a day almost. I’m trying to see now if I can turn that back with ProQuant, but will only try with the demo account.

+1 for options being prioritized for this year

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Trader says he has ‘no money at risk,’ then promptly loses almost 2,000%

The full article


I dont know what you want to tell me. Read about this guy on reddit. He was taking out loans and buying into the same option and margins. He is legendary on the internet for being the biggest idiot investment circles know.

On CFDs its waay easier to lose all your money.

If you buy a stock at $50 expecting it to go up and it drops to $45 you get margin called and can lose your accounts money based on your leverage and 1 day later it can go to $51.

In options you buy a contract that its gonna be at $51 on friday. And you dont really care that it went down to $45 two days before.

Difference? With CFD you lose more than you invest. CFDs make huge gains and even bigger loses.

With options you gained. (If it didnt hit $51, you would be out of money and lose only your initial investment).

You have to read up on stocks,options,CFDs there is no way on this earth you can back up the statement that CFDs are safer than options.

@vargamon give a balanced example. don’t be bias towards options because you favour “lucrative” over “straightforward”.

what you neglected to point out is that with every option you pay a premium which you forfeit regardless of which direction the price goes. If you guess right, then you first need the price to change enough to cover your premium before you see any profit, if it doesn’t change you lose your premium, if it goes the other way you lose your premium.

now sure, you will claim losing the premium is better than losing everything, but that lost premium means less to open your next position and that false sense of security prompts the individual to gamble again. on top of that the price is determined by so many different things that its hard to even tell what is going on while CFDs only have 2 things to consider based on the actual stock, the spread and the financing.

Options can be called by the person on the other end of the trade, CFDs are only called when you either decide to or when the position has lost enough money for a margin call, which is aimed at preventing you running into the negative like what happened with Mr “Idiot” 1RONYMAN. the fact he can pull off a -$58k balance is enough proof options are no better than CFDs and potentially worse. If an idiot can pull it off, anyone can replicate it, making options no more secure than CFDs.

with CFDs you can lose all your money, same for options. Options really are not that popular in Europe exactly because of their complexity. Losses always come down to the individual above all, the individual made a bad judgement call, blaming CFDs vs Options as the reason. don’t want to get margin called? don’t risk your entire balance on a single gamble. all the serious traders I have seen have a whole slew of positions with any single CFD having minimal impact on the overall margin, they also trade at leverages of up to 500x as professionals and do just fine for themselves.

for people who want to know the differences:
https://www.independentinvestor.com/cfd/cfds-vs-options

https://www.contracts-for-difference.com/compare/Options-versus-cfds.html

I trade options on saxo bank.

If i put 500€ and buy tesla stocks for it to go up, and it crashes i can lose up to 2k if i dont do stop limits in CFDs.

If i put 500€ on option calls i will lose only 500€ when it goes south.

Its simple.

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Don’t understand why it’s even a debate. Options (at least buying them) are way safer than CFDs. The simple fact that you have a cap on how much you can lose is enough. There are indeed other risks that you need to be aware of, like the intrinsic time decay, or lack of liquidity, or getting assigned before expiration. But as long as you are aware of the risks, options are quite versatile. For example, vertical spread strategies are very lucrative in the current volatile markets

I’m curious if you ever heard of hedging before because you seem fixated on the “options are speculative” narative.

Me. Hilarious subreddit. Although I’m only a lurker there.

The thing people seem to forget is the difference between buying and selling options.

If you sell and option, your gains are limited to the premium sold, but your losses are theoretically unlimited. The likelihood of winning though is higher, because of theta decay. In a simplistic way, you’re the casino - you may have some go terribly badly, but you hope to cover that with lots of little wins.

If you buy an option, your gains are theoretically unlimited and your losses are limited to the premium that you paid. You choose what premium you pay based on things like implied volatility, strike price, expiry date, etc. The Black-Scholes formula does that for you.

To say that Options are riskier than CFD is a fallacy. If you sell them, yes, you need to know what you’re doing and I would steer any beginner away from that. If you buy them, your max loss is limited and you choose what that would be dependent on the options you take out.

Options are more difficult to understand, but the simplicity of CFD is where the risk lies. Many people think they make a sure fire bet, only to not understand the highly leveraged nature of such a margin account, and unless you set your stop-loss correctly, you can really lose your shirt.

Options are an absolute necessity for me, for speculative trade but also for hedging purposes. CFD works well for short term scalping, options are a better intermediate term play. I look for CFD in days, for options in weeks or months.

Having Options would make 212 stand out from the crowd, as there is no zero commission broker that does equity in an ISA wrapper, currency trading, CFD and options on a single platform.

For now, I am using my international account with TastyWorks for options, but I’d love to have it on a single platform.

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For what it’s worth, incredibly well designed, simply explained options like Robinhood (seriously, have you seen the ui for it? for new traders like me it’s amazing) would be something I’m super interested in, and it’s something I wish we had both on this platform and more in the UK, so whenever Robinhood does drop over here there’s no way I’m not going to be trying it, I’m sure it’s the same for a lot of people, the options on there are a big feature

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Interested as well. Could be backed by assets in the account + cash backed in the account. And if Robinhood drops here ill have to try it over there. Writing put options is a strategy I want to go forward with. Hopeful trading212 can try to go on this direction

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Can you please publish the list of things you are working on to go-live with this year?