What is an options contract?
An options contract is a financial contract that provides the holder with the right to buy or sell a specific quantity of a particular asset, such as stocks, ETFs, or indices, at a predetermined price, known as the strike price, before/on a specified date, known as the expiration date.
Option holders can choose to exercise or forgo this right within the stipulated time, while the option seller is obligated to fulfil the terms of the contract if exercised.
Why trade options?
Advantages of trading options at Tiger Brokers New Zealand
*Trading name of Tiger Fintech (NZ) Limited
Trade combination options like a pro
Tiger Brokers New Zealand offers up to 4 legs combo order for US options, which comes with the following benefits:
Risk Management
Make multi-leg orders to ensure simultaneous execution, thereby helping to hedge effectively and mitigate risk for your portfolio.
*Details on margin discounts can be found in the FAQ below.
Margin Discounts
Due to the typically lower risk profile associated with combination options, Tiger Brokers New Zealand typically offers margin discounts for multi-leg options, which is more friendly for income strategies.
Highly Customisable
Diverse strategic options to empowering traders to tailor their portfolios to match the market outlook, investment objectives, and individual preferences.
*Details on margin discounts can be found in the FAQ below.
Simulate options trading with a demo account
New to options trading?
Not to worry! Our $1M demo account is your playground to hone your options trading skills. Funded account holders of Tiger Brokers New Zealand have access to real-time market data options.
*The Tiger Trade team endeavours to make available combination options in the demo account environment in the foreseeable future.
FAQs
What types of US options trading are available?
Is US options trading available outside regular market hours?
Is early exercise available?
How does a stock split affect the price of options?
Please note that options strategies cannot currently be applied to some positions with their symbols or contract multipliers changed due to corporate actions such as a split or a merger.
If a position in an options strategy is subject to a corporate action, this will invalidate the options strategy and will most possibly result in an increased margin requirement too.
Which US stocks support options trading?
Which HK stocks support options trading?
What underlying assets are suitable for combination options?
How can I check the margin required for an options trade?
Click on the icon located next to the buy/sell button on the order page to view the estimated margin, the commission cost and other important information.
How to place a combination options trade?
Simply click on the button besides the "Trade" to pick the strategy then any one combination to see the details and submit the order. The default net price is set as the mark-price for convenience. Please set your own price.
How to close an options combination?
Navigate to your portfolio, click 'Close' to close your combination order. In an event where a client wants to close a leg of an options contract that belongs to a specific combination order, a confirmation will serve to remind the client of possible change in margin requirements to place that order.
Which options strategies are eligible for margin discounts?
- Covered Put : Investors simultaneously hold a certain quantity of short positions and sell an equivalent number of put options.
- Covered Call : Investors simultaneously hold a certain quantity of underlying assets (typically stocks) and an equivalent number of sell call options.
- Put Vertical Spread : Investors simultaneously buy a higher strike put option (long-term option) and sell a lower strike put option (near-term option).
- Call Vertical Spread : Investors simultaneously buy a lower strike call option (long-term option) and sell a higher strike call option (near-term option).
- Short Call and Put : Investors simultaneously sell a Short Call option and a Short Put option.
- Protective Put : This strategy combines buying stocks (or existing stocks) and purchasing an equivalent number of put options.
- Protective Call : This strategy typically consists of buying call options and holding an equivalent number of short positions.
- Put Calendar Spread : Buying and selling two put option contracts with different expiration dates but the same exercise price and underlying asset.
- Call Calendar Spread : Buying and selling two call option contracts with different expiration dates but the same exercise price and underlying asset .
- For more strategies, please visit Support-Option traidng
What are the margin requirements for options trading?
New positions could be matched with your existing holdings to form an options strategy that will lower our margin requirements.
If you liquidate part of your position in an options strategy that has a margin discount applied, the options strategy will be invalidated and the standard margin requirements will apply.
Consider liquidating the options positions you wrote in an options strategy first to avoid a possible increase in margin requirements calculated on your remaining positions, e.g. when the stock position you are liquidating in the options strategy is only partially filled.
Forced liquidation will occur when your account's securities segment's Excess Liquidity (EL) is less than 0.
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