Simple questions about options.

[RobertU]

I've read this on options, but my questions are not answered there. So:

If I buy a put/call option on IG, when exactly does it settle? I can see dates for the options, but not times, and

Is it the case that all options are exercised at expiry and only then? i.e. I can't exercise them before the expiry date and time, and exercise takes place automatically at expiry if in the money, such that I don't have to do anything?

Thanks.

[gezmond]

in ig you are basically betting on the price of options and not buying or selling as in an option broker account, which is why the trades are cash settled and you can’t exercise the options, but you can of course close the trade anytime you want before expiry

[RobertU]

8 hours ago, gezmond said:

in ig you are basically betting on the price of options and not buying or selling as in an option broker account, which is why the trades are cash settled and you can’t exercise the options, but you can of course close the trade anytime you want before expiry

OK thanks. But when are the trades settled? There must be a particular time, and I can't find this stated anywhere.

 

[Caseynotes]

10 minutes ago, RobertU said:

OK thanks. But when are the trades settled? There must be a particular time, and I can't find this stated anywhere.

 

Hi, look on the deal ticket, I think it's marked a ? top rightish corner for a dropdown box with all the info.

[RobertU]

2 minutes ago, Caseynotes said:

Hi, look on the deal ticket, I think it's marked a ? top rightish corner for a dropdown box with all the info.

OK, thanks, found it. 8pm, in the case of options I'm looking at anyway.

Expiry date

19/02/21

Last dealing date

19/02/21 19:59

Settlement

Settles basis the mid-point of the IG spot price at 20:00 UK time.