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Investing with DEGIRO
80
International
Broker Awards
Easily buy options at incredibly low fees
Easily buy options at incredibly low fees
Invest worldwide at unprecedented low rates. Find out why more than 1 million investors choose us.
Invest worldwide at unprecedented low rates. Find out why more than 1 million investors choose us.
Open an accountInvesting in options with low fees
If you are an experienced investor and want to invest in options, our comprehensive platform and low rates makes it easy to do so. See a complete overview of our unprecedented fees on our fee page.
Eurexx
€0.75
Per contract
MEFF
€1.50
Per contract
Euronext LIFFE
€2.00
Per contract
Other countries
€0.75
Per contract
How to buy options
Due to their relatively high risk and complexity, options are not suitable for beginner or inexperienced investors. When opening a DEGIRO account, you cannot directly trade options. You will need an Active or Trader account, which comes with additional appropriateness tests and terms and conditions.
As mentioned, you have to deposit initial margin to enter into an options contract. The amount of margin required is a percentage of the contract value. At DEGIRO, you can find the risk category of a product next to its name, representing how much margin will need to be deposited to enter the contract.
What are options?
Options are a type of derivative that gives the buyer of the contract the possibility to buy or sell the underlying asset, depending on if it is a call or a put. Buying a call gives you the right to buy the underlying asset, whereas a put gives you the right to sell. For this right, buyers pay a premium to sellers. Options contracts will always have a specific expiration date and exercise price.
Unlike other financial products such as stocks, with options, you do not pay the full cash amount upfront or own the underlying product. Instead, you deposit initial margin to enter the options contract. Since only a percentage of the contract’s value needs to be put up initially, options are highly leveraged financial instruments. This means that slight price movements can have a significant impact.
Would you like to learn more? Read our options article for all you need to know.
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A product for experienced investors
Due to their relatively high risk and complexity, options are not suitable for beginner or inexperienced investors. Investors that choose to invest in options can bear a loss of capital and generally have a shorter investment horizon. Even for the most experienced investors, losses can be substantial.
If you are a beginning investor, it is best to start off with basic financial products, such as stocks, bonds, exchange-traded funds (ETFs) and investment funds. With these, potential losses are limited to your initial investment.
LESSON 1
LESSON 6
Why invest in options?
Investing in options can help with risk management and speculation. In terms of risk management, investors can use options to hedge price movements of the underlying product. On the other hand, speculators can use options to profit from price movements of the underlying product.
Open an accountRisk of investing in options
Investing in options can be rewarding, but it comes with high risk. You can end up losing more than your initial investment. In some cases, the maximum loss is unlimited. We recommend only investing in financial products that match your knowledge and experience and only entering into obligations that you can meet with money that you do not need in the short term.
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