How to Place an Option Trade

Introduction

Options give investors the ability to lock in a price to buy or sell an underlying security at a specified time in the future.

There is a higher risk level associated with options trading, which makes options an investment best suited for investors who have a good understanding of how they work and how they can enhance a portfolio.

To place an option trade, select Trading from the navigation menu, and then choose Trade Options.

You can also place an option trade directly from Account Holdings, My Quote Lists and your Watch Lists.


NOTE:
Before placing an option trade, you need to have option trading privileges added to your Investor's Edge account. To find out how to add option trading privileges to your account, contact us.

Trade options page selected on an Investor’s Edge account

Place your trade

1. Choose the account, select the trade type from the Action drop-down menu and enter the option symbol. 

2. Choose Select Symbol to generate the Option Expiry, Strike Price and Option Type fields.

  • Once you select an Option Expiry or Strike Price, the drop-down menu for the remaining fields will automatically update.

Tips

  • Refresh your quote by selecting the Get Real Time Quote button
  • Select the question mark icon for more details on fields and terms on the Option Order Entry page
  • In the Quotes and Research section, you can see all the options available for an underlying security and even track individual option quotes in your Watch List

NOTE: If you select the U.S. market, but choose to pay from a Canadian brokerage account, foreign exchange rates will apply.

The option order entry page showing order fields

Submit your order

1. Before you submit your order, review all of your trade details, including the estimated total cost of the trade. 
2. Once you’ve verified your trade details, enter your trading password and select Submit Order.

Tips

  • If you’re planning on making multiple trades at one time, save your trading password for the current session so you don’t have to enter it again until you sign off.
Details of an order on the option order entry page

Confirm your order

You’ll receive confirmation that your order was successfully submitted, along with an order tracking number.

  • You can also verify the status of your order on the Order Status page.

NOTE: The settlement period for options is the transaction date plus one business day (T+1).

Confirmation page with the details of an option order

Order Status

On the Order Status page, you’ll find your recent orders, including orders submitted today, Good Through orders that haven’t yet been filled, filled orders and rejected orders. 

Change or cancel your orders

  • You can change or cancel any open or partially-filled orders. 
  •  Orders with a status of “pending” or “next day” can be cancelled but cannot be changed.
How to Place an Option Trade - Order Status

More information

  • With Investors Edge, you can trade options on all North American equity markets. 
  • For spreads and straddles, as well as any other of the more complex option strategies, contact us.