Basics of Options Trading FAQs

What is the minimum amount needed for purchasing Options trading ?

To purchase an Option, you will need to pay the premium plus brokerage charges. Options come in different lot sizes, which can vary from stock to stock. You would have to pay a premium for 1 lot, regardless of how many shares it contains. You would need to keep a certain amount of margin money in your account when you sell an Option. This will be determined by your broker or exchange.

It is best to invest small if you're just getting started in Options trading.

What is the work of Options ?

How many types of Options ?

What is strike price of option ?

When does Options expire?

What is the process for trading options ?

How futures and Options are different ?

How Nifty can be traded ?

What will happen when an option expires out of money ?

Do I have to pay margin in Options ?

How can the Options contracts be settled ?

What do you mean by Covered Options ?

When do you mean by Naked Options ?

What does American Options refers to ?

What does European option mean? ?

In Options , What is the meaning of At-The-Money , Out-of-the-Money (OTM) and In-The-Money ?

How to take decision on either to buy /sell call Option or put Option ?

Is it possible to trade on option of any stock or index?

How Square off and exercise an Option is different ?

What does intrinsic value of an option mean and how to calculate intrinsic value of an option ?

What does time value of an Option mean ?