Options Order FAQs

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 person icon at the top right of your page. Scroll down to Account Management and click on View Forms & Agreements. Complete and submit the applicable form.

To open a new options account, go to Open a New Account found under Account Management. Look for the person icon at top right of your page. 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 Trade & Transfer on the site menu and click on Place an Order. Select Options which will take you to the Options page. 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. 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". 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. 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.
• Avion Rewards: Check this box “Pay trade commission using Avion points“ if you are using your 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. 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. 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 Avion 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 Trade & Transfer on the site menu, scroll down to Transactions, then click on View Order Status.

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. 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. Real-time conversions cannot be cancelled or reversed.