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How To Start Options Trading: A Step-By-Step Guide July 29 2022Stock Market Education

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How To Start Options Trading: A Step-By-Step Guide

Options are one of the popular forms of derivative trading. Options trading is a type of contract that gives you the right to buy or sell a security at a pre-determined price. Option buyers have to pay a premium charged by the sellers for such rights. Traders are now finding benefits in options trading and its volumes are rising constantly. It requires knowing advanced strategies and much more. In this article, we give a step-by-step guide for options trading.


Requirements for Options Trading

· Select Broker and Open Demat Account

The basic requirement for trading in options is opening a demat account. You may select a broker that meets your requirements and provides services at an affordable rate. You may consider Indira Securities for opening a demat account. We are one of the leaders in the stock broking industry in India. Our services come at very affordable rates. Buying or selling of options is possible only through a demat account. You can carry out trades on a laptop or mobile through the internet.

· Learn and Develop Options Strategy

If options trading is done without sufficient knowledge, there is a higher probability that you will erode all your capital. Therefore, before starting trading in options, you must learn about the different strategies and test them. When you are sure that your strategies are successful most of the time, you may start taking trades in the options. You may get in touch with Indira Securities to learn about option strategies.


· Deposit Money to Demat Account

For trading in the options market, you must transfer money to the broker’s account or demat account. You can transfer money from your banking account to your demat account just with a few clicks. Once the money is credited into your demat account, you can trade in the options.


· Market Analysis

To take correct trades in the options, it is essential to carry out market analysis. Without analysis, you will not be able to find profitable trades. From finding out the trend of the market or stock to its technical analysis, you must do it all. When you can carry out market analysis correctly, you will be able to make higher profits with options trading.


· Take A Trade

After fulfilling all the above parameters you may start options trading. Take small steps initially and then increase your capital. There are many things that the market will teach you on its own, so be prepared for it. Managing the risk should be your top priority. Always take a trade with a stop loss in place.

By following the above-mentioned steps, a beginner can start options trading. The shortest way to be successful in the options market is to educate yourself thoroughly. Using the knowledge and skills will add wings to your options strategies. You can also seek the help of experts to learn more about it. 

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Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.

6. Risk disclosures RISK DISCLOSURES ON DERIVATIVES:

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost

Dear Investor,
As you are aware, under the rapidly evolving dynamics of financial markets, it is crucial for investors to remain updated and well-informed about various aspects of investing in securities market. In this connection, please find a link to the BSE Investor Protection Fund website where you will find some useful educative material in the form of text and videos, so as to become an informed investor.
https://www.bseipf.com/investors_education.html
We believe that an educated investor is a protected investor !!!

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"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
Dear Investor if you wish to revoke your un-executed eDis mandate, please mail us with ISIN and quantity on dp@indiratrade.com by today EOD."
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INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201

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