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Trading listed options in Norway

Trading listed options in Norway

You can find a list of the most popular options to trade in Norway below, but first, some general information about options trading.

Some Background Information

A ‘call’ gives the owner of the contract the right, but not an obligation, to buy one unit of a specific stock at a pre-set price within an agreed timeframe. 

A put is just as simple: it gives you the right to sell that particular stock at a predefined price within an accordant timeframe.

The market sets the strike prices and indicates when those prices expire. The person who buys such contracts is buying his rights and has nothing to do with selling them for real money later on again. 

If someone exercises his call or put options, he will receive payment from his counterparty (the party on the other side of the trade) in return for handing his stock over. 

The same person can be both buyer and seller of options, but no party is obliged to buy or sell any shares under an options contract.

Some Risks

You must be aware of all possible risks when trading options before doing so. 

You could lose your entire investment in a concise amount of time due to price fluctuations between contracts, making it difficult even for experienced professionals to time their entry into this market. 

Trading in options might be risky, and people who are not professional traders should avoid it. Make sure you fully understand the hazards before trading. 

Link to Saxo Bank for professional traders.

Norway’s Regulations

Under Norway’s new regulatory system (Solvens II), all financial instruments must be reported individually (except for insurance) in a transparency database called “VPS”. 

All trading of financial instruments must be conducted through a regulated market or a registered dealer. Derivatives, such as options and warrants, are a type of financial instrument.

Trading Listed options Companies

SKULD 

Norwegian stock symbol: SKUL is the only Norwegian company that offers listed options on its shares. 

It has been an electronic exchange since 2001 when the significant securities brokerages established Oslo Axess in Norway to facilitate trade in derivatives electronically. 

In 2008, Skuld started offering derivatives for stocks traded on Oslo Børs electronic order book. Since then, the range of products was extended continuously, with more complex, less liquid, and higher risk contracts being added to the product line-up continually.

NOREX 

Norwegian stock symbol: NOX is the only traded options market in Norway. 

The market was launched on 1 June 2008 and has listed 11 options contracts on different stocks to date. These are primarily liquid major blue-chip companies and include two exchange-traded funds (ETF). The options are available for trading 24 hours per day during weekdays

OSLO AXESS

OSLO AXESS offers an option contract called “AXESS Express” that equals 100 shares of the underlying security at a strike price equal to the stock’s market value when trading starts on Friday before the expiration day, with an expiration time set at 11:59 pm CET/CEST Saturday night into Sunday morning. Its value is always USD 10 (or equivalent to the currency of your choice). 

The contract is cash-settled, which means that you will only receive money should you choose to exercise it. This market is also accessible via API (application programming interface) for those sophisticated enough.

ICE 

ICE offers an option called “ICE US Treasury” that equals 100 shares of any U.S treasury security chosen by the buyer at a strike price equal to the current market value of the underlying security when trading starts on Friday before the expiration day, with an expiration time set at 11:59 pm CET/CEST Saturday night into Sunday morning. Its value is always USD 10 (or equivalent to the currency of your choice). 

The contract is cash-settled, which means that you will only receive money should you choose to exercise it. This market is also accessible via API (application programming interface) for those sophisticated enough.

EUREX EXCHANGE

Eurex Exchange offers a European style option called “EUREX Equity”, which settles in shares and equals one share of the underlying security at a strike price equal to the stock’s market value when trading starts on Friday before the expiration day, with an expiration time set at 23:59 CET/CEST Saturday night into Sunday morning. 

 

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