Share Options
We charge no commission on our Share Options, only a dealing spread.
Our Share Options are a special form of CFD, which give a client exposure to changes in option prices but cannot be exercised by or against the client, and thus cannot result in delivery of actual shares.
1) Our Share Options are normally available on the Top 20 ASX shares. We will offer up to three serial contract months. The size of one contract is 1000 shares (the equivalent of $10 per point).
2) We quote an 'all-in' spread on Share Options which includes both our dealing spread and market spread. Market spreads can widen significantly in some circumstances. We will not charge any additional commission unless we notify you in writing.
3) The dealing spread on Share Options varies depending on the price of the underlying share, the strike price of the option and market conditions.
4) The margin requirement for buying an option contract is the opening price (or premium) multiplied by the number of shares.
For selling a share option, the margin requirement is variable, subject to a maximum of the Margin Percentage for the corresponding underlying share. The Margin Percentage for a particular share is calculated as a percentage of the opening value of the transaction. Margin Percentages for particular shares vary according to volatility and market conditions, between 5% and 15% for Australian shares (at the time of writing).
We reserve the right to alter the Margin Percentage at any time.
5) Dealing hours are 10.10-16.00.
6) All options expire at 16.00 on the Thursday before the last Friday of the month. Options will be settled basis the official close of the underlying share on the ASX.
7) In the case of Share Options, if there is a bonus share issue, special dividend, scrip or rights issue affecting the underlying share, we will determine the appropriate adjustment, if any, to be made to the related Share Option. These adjustments will take account of the dilutive or concentrative effect necessary to preserve the economic equivalent of the rights and obligations of the parties under the relevant margin trade immediately prior to that event.
6) When you trade in a currency other than your base currency your profit or loss will be realised in that currency and will be booked to your account in that currency. As a default, we will automatically, and on a daily basis, convert any positive or negative balance on your account in a currency other than your base currency to your base currency. You may change this default at any time by calling us or via our PureDeal platform.