Short selling

darkpool

traded options (or derivatives as some people call them) give the holder a right to buy (call option) or sell (put option) shares at a set price in the future. Typically in the UK an option covers 1000 shares.
The majority of options in the UK are termed "american" options this means the right to buy or sell the shares can be excercised on any day up to when the option expires.
Obviously the price you would pay for an option depends on the price you would buy/ sell the shares at (strike price). The option value also depends on the volatility of the share and when the option expires.
These options are traded on euronext.
If you're interested in them I would get a book or google it. If you want a broker use sucden.

Hughesy84

Some good info in there - thanks.

I like the sound of the call/ put option as it effectively means I dont need to monitor it all day like I would if I was trading on my own.

What sort of fees do these 'options' occur?

hbakhshi

If you really want to do this, look at Spread Betting. You can bet on a share going down, you can set a stop loss and you pay no tax on your profit.

darkpool

To find the prices you would pay for an option go to euronext.com / For market professionals/ stock options/ delayed prices. Go to the company you are interested in.

For some reason the site has been playing up on my computer so i can't copy/ paste any prices.

Yesterday I know you would pay £320 for the right to sell 1000 tesco shares at £4. This contract expires in december this year.

The prices/ website are a little difficult to understand at first. if you get stuck give me a shout.