Rbc Direct Options Trading

Rbc direct options trading

Rbc direct options trading

What do I need to know before placing options orders?

You must have an account that is approved for options trading before you can place an option order.

Options orders can only be placed in margin or registered accounts (including RESPs). To apply for options trading on one of your existing accounts, visit the Forms & Agreements page under the My Portfolio menu and download the applicable form.

To open a new options account, go to Open a New Account page under the My Portfolio menu.

Rbc direct options trading

Options strategies offered through RBC Direct Investing® include: buy calls, buy puts and covered call writing. Other strategies such as spreads and straddles are not permitted.

Buys: You must ensure that there is sufficient cash or margin excess in your account. All trades must be paid for on or before the relevant settlement date.

 

How do I place an option order?

Go to the Place an Order menu and select Options which will take you to the Options page.

Rbc direct options trading

On the page, complete the following information:

Step 1 of 3

  • Account: Choose the account in which you want the order to be placed.
  • Action: Choose the action you wish to complete:
    • Buy to open - open a new position or add to an existing long position (i.e.

      buy calls, buy puts).

    • Sell to close - close an existing long position (i.e. sell calls, sell puts).
    • Sell to open - open a new short position (i.e. covered call).  You must own the underlying security (eg. 1000 shares could have maximum 10 calls written against the position).
    • Buy to close - close an existing short position (i.e.

      Another Teenager TFSA Investing Approach:

      buy back covered call).

  • Contracts: Decide the number of option contracts you wish to buy or sell. Enter positive numbers only. Do not enter fractions or decimals.
  • Calculate cost: Select Calculate Cost to use our online calculator to determine the total cost of your option purchase transaction, including commission.
  • Option Types: Select either "Call" or "Put".
  • Symbol/Market/Expiry Date/Strike Price: Enter underlying symbol, market, expiry date and strike price.
  • Show Quote/Refresh quote: For a current quote on the option you've selected, click "Show Quote/Refresh Quote".

    Rbc direct options trading

    If you have accepted all exchange agreements, a real time quote will be displayed, otherwise, it will be 20 minutes delayed.

  • Price: Decide whether you would like the market or limit price:
      • Market Price - an order to buy or sell an option at the best available current price.

        If your order is placed outside of regular trading hours, the opening value may not reflect closing prices.

      • Limit Price - an order to buy or sell an option at a specific price.

        Pricing & Fees

        The order can be filled only at the specified price or better. A limit order sets the maximum price the client is willing to pay as a buyer, and the minimum price they are willing to accept as a seller.

  • Good through: Choose the date the order will be good until (up to 90 days). Please note that good through date cannot be longer than the option’s expiry date.
  • Special instructions: Select either:
    • "Any part" - you will accept any amount of contracts up to the total amount of options requested.
    • "All or none" - all the contracts requested must be traded as one block.

      This selection is not allowed for Canadian options.

  • RBC Rewards: Check mark this box “Pay trade commission using RBC Rewards® Points“ if you are using your RBC Rewards points (please refer to important notice and estimated points amount on step 2)
  • Phone: Enter your contact telephone number.

Click Continue (step 2 of 3) to proceed to the Confirm Transaction page where you can review your selections.

Options Order FAQs

The estimated cost of your transaction includes commission. For market orders, the cost is based on the last known ask price for buys and last known bid price for sells.

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If you selected to pay for a trade with points, you can view the estimated trade commission in dollars along with the estimated number of RBC Rewards points needed to pay for the trade.

Once you have reviewed all information, click Confirm (Step 3 of 3) to complete the transaction.

You can print a copy of this page for your records.

To view your order status, go to Check My Orders under the My Portfolio menu.

What are the option markets trading hours?

Similar to stocks, options markets open at 9:30 am ET and close at 4:00 pm ET with one exception: U.S.

Multi-bank

Index options (eg. QQQs) close at 4:15 pm ET.

Note:

  • If you modify your order many times within a short period of time, you run the risk of duplicate fills.
  • If you wish to buy or sell an option that you expect might fluctuate greatly in price during the market hours, it may be safer to place a limit order instead of a market order.
  • Day orders automatically expire at the end of the day's trading session.

    You cannot modify or cancel these orders after-market hours.

 What happens if I submit an order after the end of a regular trading session?

Orders entered after the end of a regular trading session but before the opening of the next regular trading session, if approved, will be routed by RBC Direct Investing to the applicable exchange to participate in the next regular trading session.

 Is the foreign exchange rate on my executed order the same day official rate?

All foreign exchange rates that are displayed on orders are real-time.

Rbc direct options trading

Real-time conversions cannot be cancelled or reversed.

View Legal Disclaimer

RBC Direct Investing Inc. and Royal Bank of Canada are separate corporate entities which are affiliated.

RBC Direct Investing Inc.

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is a wholly owned subsidiary of Royal Bank of Canada and is a Member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund. Royal Bank of Canada and certain of its issuers are related to RBC Direct Investing Inc.

RBC Direct Investing Inc. does not provide investment advice or recommendations regarding the purchase or sale of any securities.

Reward Yourself!

Investors are responsible for their own investment decisions. RBC Direct Investing is a business name used by RBC Direct Investing Inc. ® / ™ Trademark(s) of Royal Bank of Canada. RBC and Royal Bank are registered trademarks of Royal Bank of Canada. Used under licence. © Royal Bank of Canada 2018. All rights reserved.

The RBC Rewards program is offered by the Royal Bank of Canada.

To the have an online trading account?

The use of RBC Rewards points is subject to the RBC Rewards Terms & Conditions. You cannot earn RBC Rewards points through RBC Direct Investing (RBC DI). You may only use your points through RBC DI to: (1) pay for trade commissions on your eligible RBC DI accounts; or (2) transfer points to cash contributions to your eligible RBC DI accounts.

It is your responsibility to make sure you have sufficient contribution room within your registered plan when transferring points to cash contributions to your registered accounts. The Canada Revenue Agency may apply tax penalties for over-contributions. RBC Direct Investing is not responsible for any such penalties.