Options

What is an option?

An option is a financial instrument that gives the holder the right, but not the obligation, to buy (option call) or sell (option put) a given quantity of an 'underlying' asset (stock, index, currency, etc.), at a fixed price for a pre-agreed period. The issuer of the option in this case is obliged to buy or sell the asset.

At Keytrade Bank, you can trade share options on Euronext Liffe (Brussels, Paris, Amsterdam), Eurex and on the US options markets.

Advantages

• Potentially high performance for knowledgeable investors
• Options can be a good hedging instrument

Disadvantages

• Potential loss of 100% or more of your stake
• Only for knowledgeable investors