We found 11 online brokers that are appropriate for Trading Options Investment Platforms.
An option premium is used to buy an option. It is a sum of two numbers representing an option's inherent value. The first number is the prevailing option value and it is called intrinsic value. The second number is the potentiality of a rise in option value over time and is addressed accordingly as time value.
In this article, titled 'How To Value Options', we will take a brief look at topics relating to the time value and intrinsic value of an option.
Intrinsic value is the current value of an option. In other words, it is the worth of an option with respect to real money. If the option is 'In The Money', it refers to a positive payoff for a buyer. Let us understand with an example. Suppose a call option is $30 on a $40 stock - this means that the $10 difference is to be In The Money. If the option is exercised at such a point, the buyer receives the stock at $30 and thereafter sells off at $40. Their payoff is $10.
The intrinsic value here is what a buyer may receive if the option is exercised at this point. In technical terms, the intrinsic value is the difference between the strike price and the current price of an underlying asset in an option.
It is to note here that if an option is 'At The Money' or 'Out of The Money', the intrinsic value declines to zero. Under such circumstances, a buyer avoids exercising an option that may lead to a loss. The buyer will seek for the option to expire. They receive no payoff, which is why its intrinsic value is zero for them.
If the stock price of IBM is prevailing at $100, the intrinsic value of a call option at $85 is $15. This is the difference between the IBM stock price and the strike price of the option. Now, if the put option is $110, the intrinsic value is $10. The strike price here is $110 and the current price is $100.
This is the extra amount to be paid by an investor on top of the intrinsic value. It is exercised if the option witnesses a value increase ahead of the expiry date. If the option is months away from the expiry, a higher time value is expected as the opportunity of price movement either upward or downward is greater. If the expiry date is today, little or no time value will be witnessed as there is no opportunity for price movement.
Hence, the time value is the difference between the premium and intrinsic values of an option. A premium value is referred to as the sum of both time and intrinsic values. Below are the formulas of which one should take note:
Let us understand with an example. Assume that the call on IBM stock is $85 and the premium is $16. The stock is being traded at $100. This means that the intrinsic value is $15. It is achieved by subtracting the current value with the call. The time value here is $1, which is $16 - $15.
It should be notes that the intrinsic value of an At The Money option as well as Out of The Money options is zero. If a call option is bought at $110 with a $2 premium in the above example, the intrinsic value is zero and the time value is $2.
The premium for options Out of The Money or At The Money will be the same as the time value as both options have zero intrinsic value. However, if the premium is the same as the time value, this will reflect the fact that the value of options may increase.
An option that is deep In The Money may witness a premium to be mostly integrated into the intrinsic value. This means that the option requires no time to become either At The Money or Out of The Money. Time is required to become profitable and the buyer makes money.
Both time value and intrinsic value help investors in understanding what needs to be paid if an option is bought.
The option value is widely based on intrinsic value and time value. In this article, titled 'How To Value Options', we have explained the two terms in detail and described how both are important for an investor in order to help them understand what needs to be paid while buying an option.
Before wrapping up, it is important to advise beginners and novice traders that options trading is not for them. Only experienced traders can understand the ins and outs of options. Moreover, options trading is highly risky and one may suffer a big loss if they are not careful. Acquire ample knowledge and gain enough experience before jumping into options trading.
We have conducted extensive research and analysis on over multiple data points on How To Value Options to present you with a comprehensive guide that can help you find the most suitable How To Value Options. Below we shortlist what we think are the best Options Investment Platforms after careful consideration and evaluation. We hope this list will assist you in making an informed decision when researching How To Value Options.
Selecting a reliable and reputable online Options Investment Platforms trading brokerage involves assessing their track record, regulatory status, customer support, processing times, international presence, and language capabilities. Considering these factors, you can make an informed decision and trade Options Investment Platforms more confidently.
Selecting the right online Options Investment Platforms trading brokerage requires careful consideration of several critical factors. Here are some essential points to keep in mind:
Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.
When choosing a broker for Options Investment Platforms trading, it's essential to compare the different options available to you. Our Options Investment Platforms brokerage comparison table below allows you to compare several important features side by side, making it easier to make an informed choice.
By comparing these essential features, you can choose a Options Investment Platforms broker that best suits your needs and preferences for Options Investment Platforms. Our Options Investment Platforms broker comparison table simplifies the process, allowing you to make a more informed decision.
Here are the top Options Investment Platforms.
Compare Options Investment Platforms brokers for min deposits, funding, used by, benefits, account types, platforms, and support levels. When searching for a Options Investment Platforms broker, it's crucial to compare several factors to choose the right one for your Options Investment Platforms needs. Our comparison tool allows you to compare the essential features side by side.
All brokers below are Options Investment Platforms. Learn more about what they offer below.
You can scroll left and right on the comparison table below to see more Options Investment Platforms that accept Options Investment Platforms clients.
Broker | IC Markets | Roboforex | eToro | XTB | XM | Pepperstone | AvaTrade | FP Markets | EasyMarkets | SpreadEx | FXPro |
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Regulation | Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) | RoboForex Ltd is regulated by the FSC, license 000138/437, reg. number 128.572. RoboForex Ltd, which is an (A category) member of The Financial Commission, also is a participant of its Compensation Fund | FCA (Financial Conduct Authority) eToro (UK) Ltd (FCA reference 583263), eToro (Europe) Ltd CySEC (Cyprus Securities Exchange Commission), ASIC (Australian Securities and Investments Commission) eToro AUS Capital Limited ASIC license 491139, CySec (Cyprus Securities and Exchange Commission under the license 109/10), FSAS (Financial Services Authority Seychelles) eToro (Seychelles) Ltd license SD076 | FCA (Financial Conduct Authority reference 522157), CySEC (Cyprus Securities and Exchange Commission reference 169/12), FSCA (Financial Sector Conduct Authority), XTB AFRICA (PTY) LTD licensed to operate in South Africa, KPWiG (Polish Securities and Exchange Commission), DFSA (Dubai Financial Services Authority), DIFC (Dubai International Financial Center), CNMV (Comisión Nacional del Mercado de Valores), KNF (Komisja Nadzoru Finansowego), IFSC (Belize International Financial Services Commission license number IFSC/60/413/TS/19) | Financial Services Commission (FSC), Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC) | Financial Conduct Authority (FCA), Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), Federal Financial Supervisory Authority (BaFin), Dubai Financial Services Authority (DFSA), Capital Markets Authority of Kenya (CMA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of the Bahamas (SCB) number SIA-F217 | Australian Securities and Investments Commission (ASIC), ASIC (406684), Financial Services Authority (FSA), South African Financial Sector Conduct Authority (FSCA), Financial Stability Board (FSB), The Financial Services Agency (JAPAN FSA), Financial Futures Association of Japan (FFAJ), Abu Dhabi Global Markets (ADGM), Financial Regulatory Services Authority (FRSA), Polish Financial Supervision Authority (KNF), Israel Securities Association (ISA), British Virgin Islands Financial Services Commission (BVI), BVI (SIBA/L/13/1049), Central Bank of Ireland | Australian Securities and Investments Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC), FSCA (FSP Number 50926), Capital Markets Authority (CMA), Securities Commission of the Bahamas (SCB) | Cyprus Securities and Exchange Commission (CySEC), Australian Securities and Investments Commission (ASIC), Financial Services Authority (FSA), British Virgin Islands Financial Services Commission (BVI) | Financial Conduct Authority (FCA) | Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC), Financial Sector Conduct Authority (FSCA), Securities Commission of the Bahamas (SCB) |
Min Deposit | 200 | 10 | 100 | No minimum deposit | 5 | 200 | 100 | 100 | 100 | 1 | 100 |
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Used By | 180,000+ | 1,000,000+ | 30,000,000+ | 935,000+ | 10,000,000+ | 400,000+ | 300,000+ | 10,000+ | 142,500+ | 10,000+ | 1,866,000+ |
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Platforms | MT4, MT5, Mirror Trader, Web Trader, cTrader, Windows, Mac, iOS, Android | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, Mirror Trader, Web Trader, Tablet & Mobile apps | MT4, MT5, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, TradingView, DupliTrade, myFXbook, Mac, Web Trader, cTrader, Tablet & Mobile apps | Web Trader, MT4, MT5, AvaTradeGo, AvaOptions, DupliTrade, ZuluTrade, Mobile Apps, ZuluTrade, DupliTrade, MQL5 | MT4, MT5, IRESS, Mac, Web Trader, Tablet & Mobile apps | MT4, MT5, Web Trader, TradingView, Tablet & Mobile apps | Web Trader, Tablet & Mobile apps | MT4, MT5, cTrader, Tablet & Mobile apps |
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Risk Warning | Losses can exceed deposits | Losses can exceed deposits | 76% of retail investor accounts lose money when trading CFDs with this provider. | 76-85% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.89% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. | 74-89 % of retail investor accounts lose money when trading CFDs | 71% of retail investor accounts lose money when trading CFDs with this provider | Losses can exceed deposits | Your capital is at risk | Losses can exceed deposits | 75.78% of retail investor accounts lose money when trading CFDs and Spread Betting with this provider |
Demo |
IC Markets Demo |
Roboforex Demo |
eToro Demo |
XTB Demo |
XM Demo |
Pepperstone Demo |
AvaTrade Demo |
FP Markets Demo |
easyMarkets Demo |
SpreadEx Demo |
FxPro Demo |
Excluded Countries | US, IR, CA, NZ, JP | AU, BE, BQ, BR, CA, CW, CZ, DE, ES, EE, EU, FM, FR, FI, GW, ID, IR, JP, LR, MP, NL, PF, PL, RU, SE, SJ, SS, SL, SI, TL, TR, DO, US, IT, AT, PT, BG, HR, CY, DK, FL, GR, IE, LV, LT, MT, RO, SK, CH | ZA, ID, IR, KP, BE, CA, JP, SY, TR, IL, BY, AL, MD, MK, RS, GN, CD, SD, SA, ZW, ET, GH, TZ, LY, UG, ZM, BW, RW, TN, SO, NA, TG, SL, LR, GM, DJ, CI, PK, BN, TW, WS, NP, SG, VI, TM, TJ, UZ, LK, TT, HT, MM, BT, MH, MV, MG, MK, KZ, GD, FJ, PT, BB, BM, BS, AG, AI, AW, AX, LB, SV, PY, HN, GT, PR, NI, VG, AN, CN, BZ, DZ, MY, KH, PH, VN, EG, MN, MO, UA, JO, KR, | US, IN, PK, BD, NG , ID, BE, AU | US, CA, IL, IR | AF, AS, AQ, AR, AM, AZ, BY, BE, BZ, BT, BA, BI, CM, CA, CF, TD, CG, CI, ER, GF, PF, GP, GU, GN, GW, GY, HT, VA, IR, IQ, JP, KZ, LB, LR, LY, ML, MQ, YT, MZ, MM, NZ, NI, KP, PS, PR, RE, KN, LC, VC, WS, SO, GS, KR, SS, SD, SR, SY, TJ, TN, TM, TC, US, UY, VU, VG, EH, ES, YE, ZW, ET | BE, BR, KP, NZ, TR, US, CA, SG | US, JP, NZ | US, IL, BC, MB, QC, ON, AF, BY, BI, KH, KY, TD, KM, CG, CU, CD, GQ, ER, FJ, GN, GW, HT, IR, IQ, LA, LY, MZ, MM, NI, KP, PW, PA, RU, SO, SS, SD, SY, TT, TM, VU, VE, YE | US, TR | US, CA, IR |
You can compare Options Investment Platforms ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.
We also have an indepth Top Options Investment Platforms for 2024 article further below. You can see it now by clicking here
We have listed top Options Investment Platforms below.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.
Copy trading is a portfolio management service, provided by eToro (Europe) Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.
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