Leverage a securitys price movement for potential profit.
What is Options trading?
Options trading is the purchase or sale of a contract of an underlying security. Investors can trade options to potentially benefit in any market condition.
An option is a contract between two parties that gives the holder the right, without the obligation, to buy or sell a security during a designated time period at a specified price. The option writer must keep the agreement if the holder chooses to exercise their right.
There are many strategies investors can use in options trading. Each strategy has benefits and risks. Although beginner strategies exist, options are typically used by active traders with investing experience.
Benefits of Options
Tends to utilize capital efficiently by participating in an underlying assets price movement without usually having a position in it
Potentially earn revenue by selling options for premium
Can be used to help hedge against unfavourable market conditions
Things to consider
There are many things to be aware of when trading options. An important consideration to keep in mind is that the option seller (writer) can incur losses greater than the price of the contract. Consider each option strategy itemized below and the risks associated with it.
Are Options right for me?
Options may be considered by an investor who:
- Understands the underlying concepts of options trading
- Understands the advantages as well as the risks of a chosen investment strategy
- Knows how to manage a portfolio when reacting to changes in the market
Discover more about Options
Options pricing: clear and simple
Its the service, support, and overall experience of investing with us that defines the value for you.
Standard: $9.99 flat rate to buy or sell
Canadian & U.S. stocks standard online commission rate.
Active trader: $7.00 flat rate
150+ trades / quarter on Canadian & U.S. stocks, + $1.25 per contract for Canadian & U.S. options
What you get:
- Real-time market data and quotes for the Canadian and U.S. markets
- Exclusive research reports
- Educational resources that are online and on-demand
Start investing in Options with TD Direct Investing
- Open an account
- Fund your account
Transfer funds into your account with the online bill payment or funds transfer feature – or set up recurring deposits.
- Start investing toward your goals
Build your portfolio using ETFs, stocks, options, mutual funds, GICs, and more.
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Whether youre new to self-directed investing or an experienced trader, we welcome you.
Its easy to open a cash, margin, RSP, or TFSA account.
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