Options Trading
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- ZERO AMC for the first year**
- Dial-N-Trade at ZERO cost
- Action-oriented Research at ZERO cost so you stay ahead of the market
- Tried and tested investment strategies that you can ACT on
While investing in Stock Market your broker plays vital role. Your investment starts with choosing a right broker.
Open FREE* Demat Account In 35 Mins
What is Options trading?
Options trading is a financial derivative strategy that involves buying and selling options contracts based on the underlying asset, such as stocks, commodities, currencies, or indices. These contracts provide the holder with the right, but not the obligation, to buy or sell the underlying asset at a specified price (known as the strike price) within a predetermined time frame (known as the expiration date).
There are two types of options: call options and put options.
Call Options: A call option gives the holder the right to buy the underlying asset at the strike price before the expiration date. Traders buy call options when they anticipate that the price of the underlying asset will rise.
Put Options: A put option gives the holder the right to sell the underlying asset at the strike price before the expiration date. Traders buy put options when they expect the price of the underlying asset to fall.
Trading in Options market
Trading in the options market involves buying and selling options contracts based on the underlying assets, such as stocks, commodities, currencies, or indices.
If the purchaser opts to exercise the options contract on or before the predetermined date, the seller is obligated to sell the assets at the agreed-upon price in exchange for an upfront payment from the purchaser. In this scenario, the seller relinquishes any rights they may have had.
When an options contract is finalized, no physical documents are exchanged. Instead, the stock exchange through which the transactions are processed simply records the details of the contract.
How to open an Options trading account?
STEP 1
Fill in your basic personal details
STEP 2
Upload a few KYC documents (like PAN, Aadhaar, canceled cheque)
STEP 3
The Demat & Trading account is activated post verification
STEP 4
To activate Options, Proof of Income is to be submitted