Trade in Futures and Options
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Open Futures & Options Trading Account
A futures and options trading account is a type of trading account that allows you to trade in the equity derivatives market. The derivatives market is a special stock market segment where you can trade contracts instead of stocks. These are called F&O contracts, or futures and options contracts.
The account is specifically for trading in futures and options contracts. While you are opening an investment account, they will use the amount only for futures and options trading, not for investing directly in stocks or other assets. This type of account is opened with a broker. As with regular stock accounts, there are two types: full-service and discount brokers. The choice depends on how much support your broker needs versus how much control over the assets you want to retain (and at what cost). The stock brokerage fee also varies depending on which broker you choose to open this type of account with.
Why Should You Open a Futures &
Options Trading Account?
The futures and options trading agreement is a contract between you and your broker that sets forth the obligations of both parties.
The important contractual details are as follows:
The name, address, phone number and email address of your broker.
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The type of account you wish to open, i.e., whether it will be for cash-based or margin trading.
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Your desired username and password for accessing your account online.
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You will trade the types of derivatives (options or futures) on a given exchange.
Start Trading Once Your Account Is Activated
Once your account gets activated, you can start trading in futures & options. To do this, you need to place buy and sell orders for specific contracts traded on the exchange. You also need to monitor price movements and take a call on whether you want to hold or square off the trades based on market movements. You may also use the margin trading facility provided by your broker to increase the amount of money available for trading.
Frequenlty asked questions
When Can I Trade In Derivatives?
Do I Need A Separate Login For My F&O Account?
How Do I Transfer Funds To My F&O Trading Account?
What Are The Charges I Have To Pay For Options Trading?
