An option trading license allows traders to trade options without having to invest time or money in the underlying stock.
The licence can be used to buy or sell options in any currency and is valid for a minimum of five years.
The average price of an option on the New York Stock Exchange is $0.0975 per share, while the average price on the London Stock Exchange has been pegged at $0,065 per share.
You will need a bank account with a minimum balance of £1,000.
You must have a minimum account balance of more than £5,000, as the number of trading options on the exchange varies according to the size of the trading company.
You will need to apply to the Financial Services Authority (FSA) to register an option trade as a financial transaction, and to have the option trading company comply with regulations.
You will also need to register your options trading licence with the FSA.
To buy or to sell options, you must enter the options into the option exchange.
You can use the exchange to trade or sell short or long options, or buy and sell short, long or short options, and put and sell options.
You can sell short options using the option swap function.
You do not need to have any of your options in the option trade account.
The FSA also requires you to register as an option trader with the Financial Conduct Authority (FCA).
You can find more information on the FSA’s website and contact details for options traders.
Find out more about options trading.