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option value clarification


ppp8

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Can anyone explain the total value of an option contract in spread bets? What is the contract size?

Support page says:

FTSE, bet size £10, minimum bet £2. But what is the contract size, 100?

Does it mean that if I buy a call priced £95 with minimum bet of 2, does ultimate value equal 95*2*100?=£19000 ? Does not seem right.

I need to know the maximum possible loss on a purchased option. Info tab does not say contract size. In support, minimum bet on FTSE is £2, in ticket window £0.5. Does not much. 

Please provide clear guidance. 

Thank you

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Thanks Ian, this makes more logic. Formula is then, current price * bet size = maximum loss.

I found different explanation on the forum that confused me. But it must have been for CFDs 

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Hi @Ian_944  @ppp8

Spread Betting: 

Total premium paid = Bet size x option price

CFD:

Total premium paid = No of contracts x value per contract x option price

FTSE contract size: 1 contract = 10GBP/ point

When buying options the maximum loss is always equal to the premium paid, hope this helps.  

All the best 

Anda

 

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20 hours ago, ppp8 said:

Thank you Anda, I trade regular equity options on daily basis, just could not get my head round how it works in spreads. Seemed too simple :) 

All best

Who do you trade with? Few seem to quote on-line prices. People have been on at IG for years to do it.

 

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