InvestorQ : I have just opened my equity trading account; can I start trading in options?
rhea Babu made post

I have just opened my equity trading account; can I start trading in options?

Answer
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2 years ago


By now you know that a call option is a right to buy a stock or the index without the obligation. In return for that right without obligation, the buyer of the call option pays a premium to the seller of the call option. But do you know how exactly a call option works? Here is a quick guide to how a call option actually works in the stock markets but first how to open your option trading account. If you have opened your equity trading account; are you ready to buy options? There is a slight extra effort on your part. You need to open a separate F&O account to trade futures and options. Your equity trading account can be used to buy equity shares and ETFs. You need an F&O account to buy call options with documentation requirements also being more than a pure equity trading account. For example, the broker will ask you to furnish of income like bank statement or tax returns filed to be clear that you really have the capacity to take on the risk of options.