Today sees the launch by Oslo Børs of a new derivative product, Easy Options. This represents a product developed specifically for the retail market, allowing everyone interested in shares and derivatives to participate in the derivatives market with a limited investment. Easy Options are simple to understand, straightforward in operation and investors know in advance what profit they will earn if they make the right choice.
“The rationale for Easy Options is that we want to offer a simple derivative product for retail customers, allowing private individuals to participate in the derivatives market with a limited investment. One of our objectives is that the new product will help people to develop expertise in this market, and so allow more private investors to use the derivatives market as part of their investment strategy”, explains Jesper von Zweigbergk, Senior Vice President - Derivatives at Oslo Børs.
In brief detail, EASY Options are option contracts where the investor decides whether a particular share or index is going to reach a certain price above or below a predetermined level in two weeks’ time. This means that the investor must have a view on which direction he or she believes the particular share or index will take in the short term.
Investors will always have at least five price levels to choose from. Additional price levels will become available as the price of the share or index moves, so that there will always be price levels available that are above and below the closing price from the previous day. It is also possible to realise profit or limit a loss by closing a position before the two-week period is over.
It is currently possible to trade EASY Options in Norsk Hydro, StatoilHydro and Yara, and also directly in the OBX index - all of which are attractive and liquid underlying instruments listed on Oslo Børs.
It will in due course be possible to trade EASY Options through most of the broking firms that offer trading in shares and derivatives on Oslo Børs. However, not all broker firms have systems in place for trading in EASY Options at the moment.
Further details on Easy Options can be found at: http://www.oslobors.no/ob/easy_options_details
Frequently Asked Questions on Easy Options: http://www.oslobors.no/ob/easy_options