What are CFDs, Forex and Options?
A CFDs, Forex and Option or fixed return
option (FRO) is an option with a predetermined payout rate. As
the investor, you will choose whether you think the price of the asset
will rise or fall and will earn a 75-85% payout if you predicted
correctly. The exact amount of the payout is disclosed in your
contract for an option that expires in-the-money (for a correct
prediction) while an option that expires out-of-the-money (for an
incorrect prediction) will earn no return. Your payout is not
affected by how much the asset's value has increased or decreased.
Once you have purchased an option you cannot sell it until it
What is an Underlying Asset?
An Underlying Asset is a financial asset
such as a stock, commodity, index or currency pair that establishes the
source for an option.
What is a Put Option?
A Put Option is an option that pays you a
profit if the value of the underlying asset depreciates when compared
to the price it was at the time of purchase. The full amount of the
investment will be returned to you if the option expires at the exact
price it was purchase at.
What is a Call Option?
A Call Option is an option that earns
you a profit if the value of the underlying asset rises above the level
it was purchased at. If an option expires at the same price it was
purchased at you will then receive the full amount of your investment
What is the investment amount?
The total amount of money you invested in the option.
How do I invest?
Investing is simple. First, you must
choose an underlying asset and then click either the "call" or "put"
button depending on your prediction for the price of the asset. An
investment sheet will open and you will have to enter the amount of
money you wish to invest. Then, just approve the purchase. You may
cancel your purchase any time prior to approving the transaction. You
can continue to watch the price of the asset change since the investment
sheet continually updates.
What is the return on a successful investment?
If your prediction is correct, you are
guaranteed the fixed return amount that is shown next to the asset on
the uTraderOptions site.
What is the Double Up feature?
If you think that your prediction is
going to be correct at the expiry time, you can choose to use the Double
Up feature. This allows you to invest in the same asset again under the
same conditions but at the current asset price. This is a chance to
increase your invest and profits when you believe your prediction is
What is the Rollover feature?
The Rollover feature allows you to
extend the expiry time if you think that your prediction will be
incorrect at the initial expiry time but will be correct at a later
time. Essentially, this feature gives you the chance to turn a loss into
a possible profit. Using the Rollover will require you to invest an
additional 30% for a 30% higher return if the option expires In the
Money. You may use the Rollover feature once per option and up to 10
minutes prior to the initial expiry time.
What if the return if the options expires out-of-the-money?
If your chosen option expires
out-of-the-money, you will not receive any return on your investment.
What is an expiry level?
The expiry level refers to price of the
asset at the assets expiry time according to Reuters. This determines
whether the option has expired in-the-money or out-of-the-money. Each
asset has a different expiry level.
What is an expiry time?
This is the set date and time at which an option will expire.
What is the time zone of the expiry time?
The expiry time and uTraderOptions's trading
hours are displayed according to the time zone set on your computer.
Where can I view the precise trading hours of each asset?
Please view our Asset Index for a
detailed list of all of the assets we have for purchase plus detailed
descriptions, trading hours and expiry times.
Which assets can be traded through the uTraderOptions platform?
The uTraderOptions site's Homepage displays
some of the most popular options. However, if you want to see other
assets then you can select the appropriate table from the dropdown menu.
You may also search for specific assets on the Asset Index page which
displays all important details about all of our assets.
What are the levels shown in the trading boxes?
The trading boxes show you the levels or
price quote for the underlying asset. The levels are in constant flux
and the box shows these changes frequently. The levels show you the
prices at which uTraderOptions will sell the options but these prices are not
the same as the real time market levels. uTraderOptions uses a proprietary
algorithm to determine the parameters for an asset.
What is the meaning of the colors for the levels on the trading floor?
The green and red colors show you the
direction of trading compared to the previous day's trading. Green
represents a level higher than the uTraderOptions expiry level of the previous
day and red indicates that a lower level than uTraderOptions's expiry level of
the day prior.
I received an error message stating that
I exceeded the maximum investment when I tried to invest in a single
option. What do I do?
Options have a maximum investment amount
of $5000 per option but if you wish to purchase more than that, you can
simply purchase multiple options at the maximum amount one after the
other until you have invested the total amount of money you want to.
What happens if the expiry level of an underlying asset is identical to the level at which the transaction was made?
If the expiry level is identical to the
level at which the asset was purchased, then your account will be
credited the original investment amount made on that asset. In other
words, you will not lose or gain any money if the levels are exactly the
What is the difference between a uTraderOptions product and an All or Nothing Option?
All or Nothing Options, often created by
traders at banks, are CFDs, Forex and Options in which the investor
will earn an agreed upon return rate or lose the investment amount
What is the difference between buying options in uTraderOptions and purchasing put and/or call options in the stock market?
uTraderOptions options are CFDs, Forex and
Options so there is a fixed return rate. They also have more flexible
expiry points which can range from as short as an hour to as long as a
month. Options bought through the stock market, often called standard or
vanilla option chains usually have fluctuating yields and longer expiry
dates. They can also be sold before the expiry date while CFDs, Forex
and Options may only be sold after they expire.
Are the profits taxable?
All uTraderOptions customers are responsible
for their own tax liabilities according to their country of residence.
Why cannot I invest?
There are several possible reasons as to
why you can't invest at a certain time. You may only invest during
market trading hours so if you try to purchase CFDs, Forex and Options
on the uTraderOptions site outside of these hours, you will see that the buying
option is disabled. However, if you are having trouble purchasing an
option during market hours there may be a technical issue in which case
you can contact customer service. Finally, make sure you have sufficient
funds in your uTraderOptions account otherwise you will not be able to
complete the purchase.
Where do the asset quotes come from?
uTraderOptions uses SpotOption platform for CFDs, Forex and Options trading.
The prices are based on either Leverate.com or Reuters; All the FX
pairs and commodities are coming from Leverate while all the exotic
indices or exotic equity markets are coming from Reuters.
there is only one single exchange in which the equities are trading at,
the prices of Apple, Google or Barclays for example are expected to be
the same no matter who provides the feed but as for FX and commodities,
where prices may vary, Leverate is their feed provider.
If there any issues with the expiry rate - proof of expiry can be provided.