Wat? AMZN and Google options on CFDs on TWS?

Discussion in 'Interactive Brokers' started by yosuji198, Nov 14, 2019.

  1. Hi there,

    I'm an options trader. I trade options on the equity AMZN and GOOG. But I noticed today that in my watchlist I can add the AMZN and GOOG CFDs. And when I then pull up option chain on those CFDs it looks just like the option chain of the equity options -no difference, but on the top it says it's the option chain for the CFD.

    Would anyone know if the CFD on the option chain is just a misnomer? If I buy a call option from this CFD option chain and it ends in the money will I end up long 100 AMZN shares, or long 100 AMZN CFDs (don't CFDs have an end date?). Or would it settle in cash like an index option?

    If anyone knows please let me know.

  2. guru


    There are already too many options and not that much volume on each one, so options on something as exotic as CFDs would have no volume at all, or you’d be trading with couple other guys that try to scam each other.
    Google only points to the idea of hedging CFDs using options:
  3. d08


    Pretty sure the orders end up on the options market, IB doesn't take the other side, they hedge. Just like with their CFDs, there's no separate market.
  4. guru


    Yup, that’s what I assumed as well.
  5. Yea I just checked myself by buying a deep ITM option 'CFD' on General Electric. It simply executed the standard equity option for General Electric.

    So in the end the 'CFD' options chain is just a regular equity options chain.
    thanks community.
    guru likes this.