The Option Trader trading platform allows to invest in the european-type options market, calculated in terms to the average market quotation at 16:00 hour (10:00 a.m New York time, 8:30 PM Mumbai time).

Options can have expiration Times from one day to six months. The strike price level can not radically differ from the future price for the chosen expiration date (options deep out-of-the-money and deep in-the-money). It means that the delta parameter of the option should be in the 0,1 to 0,9 range (absolute values). While trying to generate a quotation for an option with a delta out of the mentioned range, a proper statement will appear.

The trading system allows investors to perforom the following operations:

Buying an european option at market price

Through buying an option, an investor gains the right to buy (in the case of a call option) or sell (for put options) the given base instrument on the chosen market. After chosing the parameters of the option (market, volume, expiration date, strike price) the system automaticallly will present the current market price of the instrument. In order to perform the trade, an investor is obliged to have on his/her investment account the amount equal to or exceeding the Premium amount (market price of the option). At the same time it is the maximum loss level, which an investor can experience in this transaction.

Selling an european option at market price

When selling an option an investor receives the Premium – the market value of the given instrument. For that Premium, an investor is obliged to buy (in the case of a put option) or sell (for call options) the given base instrument on the chosen market on expiration date. After choosing the parameters of the option (market, volume, expiration date, strike price) the system automaticallly will present the current market price of the instrument. In order to secure the transaction, an investor is obliged to have on his/her investment account the amount equal to 1% of the nominal value of the open position. In the case of unfavourable price changes, on expiration date an investor will be obliged to pay the difference between the option strike price and the market price.

Closing an option at market price

An investor can close an open option position at any time before expiration date at the current market price. The position is priced by the system autmatically during the duration of the option.

Closing an option on expiration date

On expiration date, open positions are automatically closed by the system. The owners of buy options, which strike price is lower than market price and sell options with a strike price higher than market price will receive the difference, while the sellers of options in this case will be obliged to pay the analogical amount. The calculations are performed by the Option Trader system automatically.