
What Is An Option
Learn what an option is, how calls and puts work, and key terms like strike price, expiry, premium, and settlement before you trade options.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more
New to options? Learn what it is before you trade options.

Learn what an option is, how calls and puts work, and key terms like strike price, expiry, premium, and settlement before you trade options.

Learn how call options work, how to calculate profit and loss at expiry, and the risks of buying vs selling calls, with worked examples.

Learn how put options work, how to calculate profit and loss at expiry, and the risks of buying vs selling puts, with worked examples.

Compare Cross Standard Margin (X:SM) and Cross Portfolio Margin (X:PM), how initial and maintenance margin work, and which mode suits your positions.