Trading

Options are suitable for experienced investors looking for more sophisticated investment alternatives. They can offer a powerful and flexible tool that can be used to enhance a portfolio in a number of ways:

• Profit from a view, no matter whether the market is moving up, down or sideways
• Access the underlying stock for a fraction of the cost of a direct investment
• Earn extra income from a portfolio by writing Options and receiving a premium
• Protect (or ‘hedge’) existing investments by guaranteeing the sale price, regardless of market movements

Options strategies range from the simple to the complex and can be tailored to suit investment goals and appetite for risk. Like any derivative product, Options can involve risk, and all investors and advisers must have a clear understanding of this before trading.

Warrants are unique trading instruments that are issued by banks and other institutions and traded on the ASX and Chi-X. Warrants are 'non-standard' - in other words, each one is different and will offer different features. Depending on the features of the individual warrant, you can use them to:

• Gain leveraged exposure to an underlying share
• Diversify your portfolio
• Generate income through dividends and franking credits
• Protect your portfolio

You need to read the Product Disclosure Statement provided by the issuer of a warrant to assess its features and whether it meets your trading and investment purposes, before you decide to invest.

ETFs are as straight forward to buy and sell as individual shares. They are a cost effective investment vehicle which can be used to create a diversified portfolio or to complement existing investments. 

• Gain exposure to a portfolio of domestic, international or fixed income securities via a single trade
• Trade flexibly with continuous ETF share pricing during normal ASX hours
• A cost effective option due to lower operating costs
• Buy and sell on exchange just like a normal share on the Australian share market

Before you invest in a particular ETF, you should research the fund, read the PDS and make sure you understand the potential risks.

A simple and easy way to gain international exposure, Chi-X TraCRs are listed securities that provide access to US companies through the Australian market, in Australian dollars.

• Gain exposure by adding some of the world’s best known brands to portfolios
• Access companies from the US under the protection of Australian regulations
• Trade on the Australian market, in Australian dollars (AUD), via CommSec Adviser Services during Australian trading hours
• TraCRs settle through CHESS and are held on HINs the same way as Australian equities shares, giving complete visibility of holdings

To learn more about how TraCRs work, the benefits and risks, which US companies are available and how to trade them, see our Chi-X TraCRs Overview or visit the 
Chi-X TraCRs website.

1. Falling sell: Instruction to place a sell order on the market at a limit price when the security price falls to or below a pre-determined price you have established as a trigger price.
2. Falling buy: Instruction to place a buy order on the market at a limit price when the security price falls to or below a pre-determined price you have established as a trigger price.
3. Rising sell: Instruction to place a sell order on the market at a limit price when the security
   price rises to or above a pre-determined price you have established as a trigger price.