Derivatives trading for retail investors

[ FOR EVERYONE ]

Now not only for professional customers

[ INSTRUMENTS ]

Certain types of options are available to retail investors

[ HOW TO START ]

To start trading, you need a brokerage account with Freedom Finance Global PLC

Open an account

For all retail investors

[ NOW ]

To start trading derivatives (derivative financial instruments), you need to open an account with Freedom Finance Global PLC, read the special information materials and instructions in the trading system

[ BEFORE ]

Derivatives trading was available only to Professional customers. To do this, it was necessary to take testing and meet certification criteria (volume of assets, special education, professional experience in financial markets, etc.)

Investment conditions

Before starting transactions with options, all investors will need to read the Disclaimer and other information materials prepared by the Company about the risks associated with derivatives trading.

Be aware of the risks

Important: Options trading involves substantial risks and is not suitable for all investors. Please make sure you fully understand the risks before you start trading.

Options are a non-linear instrument with specific risks when buying and selling. In addition, there is a huge leverage effect built into options, as one option contains 100 shares.

Retail customers can only purchase options and close positions on previously purchased options. It is recommended that you make sure you fully understand the risks and specifics of options before you start trading.

Open up new financial market opportunities

[ 01 ]

What are derivatives?

[ ADVANCED TRANSACTIONS FOR INVESTORS]

Derivatives are contracts to enter into a future transaction with a specific asset (“underlying asset”) under predetermined conditions. The cost of a derivative and the amount of obligations of the parties to the contract depend on changes in the value of the underlying asset of the contract (which may be securities, currencies, commodity indices, etc.). The most common derivatives are futures and options. They are officially traded on exchanges.

[ 02 ]

/ Options

There are two types of options:

1. Call option. Gives the holder the right, but not the obligation, to buy an asset at a predetermined price on or before a specified date.
2. Put option. Gives the holder the right, but not the obligation, to sell an asset at a predetermined price on or before a specified date.
 

[ WHAT ARE OPTIONS ]

This is an agreement entered into on the stock exchange under which an investor, for a certain amount of money, acquires the right to buy or sell an underlying asset in the future. That is, it is not necessary to buy or sell, but it is possible.

Imagine that you want to buy Google shares in three months. You find a seller to whom you say, “I want the right to buy Google shares at $140 in three months.” The seller agrees, but for this right he asks for a small premium - for example, $5

Possible future scenarios:

1. After three months, the share price rises to $160. You may exercise the right to buy an asset at an agreed price. In this case, your profit is: $160 - $140 - $5 = $15.

2. If the shares, on the contrary, become cheaper, you have the right not to buy the asset. After all, an option is a right, not an obligation. In this case, your loss will be $5, which you paid as a premium
 

Advantages of derivatives

[ RISK HEDGING ]

Protect yourself from asset price fluctuations, currency risks, interest rate changes, and more

[ HIGH LIQUIDITY]

Derivatives are easy to buy and sell

[ DIVERSIFICATION ]

Manage portfolio risk: derivatives have different characteristics and price behavior

[ New features ]

Predict the rise or fall of prices for various assets and make money if the forecasts turn out to be correct

[ Гибкость ]

Используйте больше финансовых инструментов, подходящих для ваших индивидуальных торговых стратегий

Available underlying assets

Options on 2,581 financial instruments are now available to retail investors:

  • Stocks
  • ETF Funds
  • Exchange indices

Make the most of earning opportunities with Apple, Tesla, Microsoft and thousands of other brands!

The list of available instruments may vary by regulation or at the Broker`s discretion.

How to start trading derivatives

Follow five simple steps. If you have any questions, please contact the experts at Freedom Broker for advice.

Stage 01

An application for opening an account is submitted online, the process takes no more than 5-10 minutes. An individual customer will only need a passport or identity card (for citizens of Kazakhstan. The list of documents for non-residents is different). If you have any questions, our managers will advise you.

Stage 02

Replenish your account

Stage 03

Open the Tradernet.Global trading platform, find the required derivative

Stage 04

Please read the mandatory information materials on derivatives and confirm your reading in the platform

Stage 05

Set up order parameters and submit a trade order

Freedom Finance Global PLC (ffin.global) is a company incorporated and existing in accordance with standards of the Astana International Financial Center (AIFC). The company has been conducting the following activities since May 20, 2020: (a) investment activities as a principal and agent; (b) investment management; (c) investment advisory; (d) organization of investment transactions; and since November 21, 2023, (e) management of a collective investment scheme. License from the AFSA Committee for Financial Services Regulation: AFSA-A-LA-2020-0019. This material is addressed to an unlimited number of people and is a non-expiring financial promotion. This material is not an individual investment advice for entering into transactions with securities or any other financial instruments. Owning the securities and other financial instruments is always associated with risks (detailed information about the risks of derivatives trading is presented in the Declaration of Risks Associated with Transactions on the Securities Market). The Company does not guarantee or promise future returns on investments, does not guarantee reliability of possible investments and stability of potential gain amounts.