How To Start Options Trading in India With 10,000

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Options are among the numerous investment choices accessible, but they are also among the most poorly understood. Many still wonder, "How to Start Options Trading?" However, when done correctly, options trading may result in substantial gains.


Remember that you can make fast money with effective option management. Traders often overlook options trading because they think it's too complicated.

But if you employ the appropriate tactics, you may be able to generate money more rapidly than with stocks. The reason is that investors must start working with options.

What Is Options Trading?

Trading stock options can be even more complicated than trading stocks. When you buy a stock, you must tell your broker how many shares you want, and they will fill the order at the current market price or at a limit price you set.

When you trade options, you buy or sell an underlying asset at an agreed-upon price by a specific date in the future. Options trading requires advanced strategies, and opening an options trading account takes a few more steps than opening a regular investment account.

Options are traded only in lots, and exchanges regulate these lots. For indexes, the lot size for Nifty is 50, and for Bank Nifty, it is 25. You can make the lot bigger depending on how much you trade and how you handle your money.

Example: Rs. 40 premium/quantity. If you (as an Options Buyer) acquire 1 lot of 50 quantities, your first transaction price is Rs. 2000. The option buyer will pay the seller this sum.

Is it possible to start trading with 10000 INR?

After stumbling upon this inquiry on Quora, we decided to see what our The best stock broker in India had to say about it. They said, "while Rs.10,000 would not get you very far in conventional stock trading, it might get you a good start in the options market.

You may earn five thousand rupees by the weekend if you perform a fantastic job. But caution is advised, however, since trading without enough knowledge might result in the loss of entire capital." Here's how to deposit Rs 10,000 in Indian options trading:

1.     Open an options trading account

To start, you need to open a trading and Demat account. Prefer the Best Trading App in India to create an account for yourself.

2.     Derivative Segment Trading

While establishing your Demat account, you need to verify that the trading in your derivatives section is operational. It gives you the ability to trade in Futures as well as Options. Additionally, it would help if you verified that activating these parts would not incur further costs.

3.     Fund Your Account

After opening an account, fund it. To fund your trading account, you will need to transfer funds from your savings account. After funding your account, you may start trading options.

4.     Determine your objective

What are some of the reasons you desire to trade options? The following are the three most prevalent explanations:

·        Income generation –

You are using options to generate income. You can use them to make money on stocks that you already own or equities that you would want to own.

·        Hedging –

Hedging uses options to lower the risk associated with an existing stock position.

·        Speculation –

With options, you can use leverage to take a speculative position in the market. It's possible to construct a trade with a profit potential even if market conditions remain unchanged.

5.     Pick which options to buy or sell

Nifty and Bank Nifty are the most traded options. However, you may also engage in options trading using equities. Indexes have a weekly expiration every Thursday and a monthly expiration every month. Conversely, stock options only have a monthly expiration.

6.     What option should you take?

Depending on how you see the underlying stock moving in the future, there are many different types of options contracts you may enter into:

·        If you believe the stock price will increase, you should purchase a call option and sell a put option.

·        If you believe the stock price will not change, you should sell a call or put option.

·        If you believe the stock price will decrease, you should purchase a put option or sell a call option.

A call option offers the holder the right, but not the duty, to acquire a particular number of shares of stock within a specified period. The price is predetermined (the strike price.)

With a put option, you may sell your stock at a predetermined price up to the option's expiration date. Still, you're under no obligation to do so.

7.     Search for options ideas

Reduce your option ideas to a reasonable number of possibilities by filtering the field based on price, volume, implied volatility, sector, or other criteria.

8.     Analyze and compare ideas.

It's time to contrast your trading idea possibilities after you've selected a handful of ideas. Look at the risks and rewards of each option and how its price may be affected by things: the price of the underlying stock, the number of days until expiration, strike prices, expiration dates, and implied volatility.

9.     Place your options trade

Have you decided which option to trade? The next step is to place an online order to build your option position.

Select the underlying symbol, then provide the specifications of the option order (type, expiration, strike price, number of contracts, etc.). Submitting your order sends it to the market.

10.                        Manage your position.

Keep a watch on your options position's value and trend to know what to do when expiry approaches.

·        If you bought an option

Depending on the underlying asset's price, you can choose to sell the option before it expires, buy, or sell the underlying securities, or let the option expire without any value.

·        If you sell an option

You have two options: either purchase the option back to close the position or let it expire worthless. Buying or selling the underlying securities might also require you to accept assignments.

The Final Word

You can diversify your portfolio using options, but doing so will need some effort on your behalf.

Options trading methods are typically intimidating and involve a certain amount of forethought to be effective. If you're starting in options trading, our most important advice is to prepare well in advance.

Get educated on the stock market, investigate local brokers, and consult your social circle for advice. Following these instructions will significantly assist you as you enter the world of options trading. When done well, options may be a very beneficial addition to even the most established investing portfolios.


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