Here are few initial steps that can help you in setting up your trading account . Before you start trading options you need to setup a trading account with a broker. Turns out obtaining options trading privileges are not so easy to setup. Follow these steps and your chances will improve. If you don't have an online brokerage account you will need to choose one and fund … [Read more...]
Steps to keep in mind while buying call option and put option.
Following are the steps that should be kept in mind while buying call option and put option: Research the online brokerage services specialized in option trading (e.g. OptionXpress)- compare option trading fees and services Open an option trading account with the brokerage service you choose Transfer funds to your brokerage option account Learn the details about … [Read more...]
Kinds of options in trading
Call Option It is an option to buy a stock at a specific price on or before a certain date. Buying a call option gives you the right (but not the obligation) to purchase 100 shares of a company's stock at a certain price (called the strike price) from the date of purchase until the third Friday of a specific month (called the expiration date).In this way, Call options are like … [Read more...]
Trading in options
Option Meaning: An option is a contract, which gives the buyer the right, but not the obligation to buy or sell shares of the underlying security at a specific price on or before a specific date.In simple words , it is a contract between a buyer and a seller that gives the buyer the right, but not the obligation, to buy or to sell a particular asset on or before the option's … [Read more...]