What are Options CFDs?
Options CFDs (Contracts for Difference) are derivative financial instruments that allow traders to speculate on the price movements of options without actually owning the underlying options.
Unlike traditional options trading, where you buy an option and acquire the right to buy or sell an underlying asset at a specific price, with Options CFDs you only trade the price difference.
In short: You profit from price movements without having to go through the complex mechanisms of traditional options.
Ready for Options CFD Trading?
Libertex offers over 300 options CFDs with zero spread and lightning-fast execution!
Open Free AccountHow do Options CFDs Work?
1Open Position
You choose an option (e.g., Apple call option) and decide whether you want to bet on rising (long) or falling (short) prices.
2Use Leverage
With leverage, you can trade larger positions with less capital. At Libertex you benefit from flexible leverage for maximum control.
3Realize Profit/Loss
Your profit or loss is based on the difference between the opening and closing price, multiplied by your position size.
Example:
You buy a CFD on an Apple call option at $5.00
The price rises to $7.00
Your profit: $2.00 per contract (multiplied by your position)
Advantages of Options CFDs
Leverage
Trade larger positions with less capital. Maximize your profit potential with controlled risk.
Low Entry Barrier
Start with small amounts. At Libertex possible from just €100 minimum deposit.
Bidirectional Trading
Profit from both rising and falling markets. Long or short – you have the choice.
No Expiration Dates
Unlike traditional options, CFDs have no expiration date. You decide when to close.
Simpler Mechanics
No complicated Greeks or exercise rights. Focus on price movements.
Fast Execution
Lightning-fast order execution at Libertex. Take advantage of market movements in real-time.
💎 Trade with Zero Spreads
Libertex offers unique zero-spread conditions – pay only a small commission and keep more profit!
Options CFDs vs. Traditional Options
| Feature | Options CFDs | Traditional Options |
|---|---|---|
| Expiration | No expiration | ✗ Fixed date |
| Minimum Capital | Low (from €100) | ~ Higher |
| Complexity | Simpler | ✗ More complex |
| Leverage | Flexible | ~ Naturally present |
| Execution | Instant | ~ Exchange dependent |
Risks and Important Considerations
Important Risk Warning:
Options CFDs are leveraged products and carry significant risks. Losses can exceed your deposit. Only trade with capital you can afford to lose.
How to Minimize Risks:
- -Use stop-loss orders
- -Start with small positions
- -Diversify your portfolio
- -Educate yourself continuously
Best Practices:
- -Use demo accounts to practice
- -Define clear entry and exit rules
- -Keep a trading journal
- -Don't trade emotionally
This Series:
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Risk Warning: Trading CFDs and leveraged products involves significant risks and may not be suitable for all investors. You may lose more than your initial deposit. Make sure you fully understand the risks and seek independent advice if necessary.