What is the difference between CfDs and options?

CFDs and options are both financial derivatives that enable you to speculate on the markets, but they operate in very different ways. Here's a complete guide to the differences between the two. What’s the difference between CFDs and options? The difference between contracts for difference (CFDs) and options trading lies in how each contract works.

Are CFDs more flexible than options?

CFDs are considered more flexible since you can trade on several underlying markets, including options. An option is a financial derivative, and also takes the form of a contract. But instead of agreeing to exchange the difference in an asset's price, you're buying or selling the opportunity to trade it at a fixed price for a set period.

Can you use option CFDs to speculate on option prices?

With us, you can even use CFDs to speculate on option prices. Instead of giving you the right to buy or sell a market at a set price, option CFDs enable you to go long or short on the movements of option premiums. You can trade CFDs on daily, weekly, monthly and quarterly options.