How do I trade options?

Options contracts can be traded through broking firms who are members of NSE and BSE. Most of the trading members these days provide online and mobile trading platforms to trade in the options market. You need to open an account with one of the broking firms and complete the formalities like application signup, KYC etc. Please make sure that the broking firm you're opening your account with facilitates trading in options as there are firms who either don't allow options trading or allow only some types of options trading like equity options but not commodity and currency options.

You will be allocated a client id, password to login to the online, web and mobile platforms. You also need to maintain a margin amount and bank account will be linked to your trading account to facilitate the transfer of funds. The firm will also open a demat account.

Trading in options is as simple as trading in shares-

1. Login to the website and application.
2. Click on the place order tab.
3. Search for and select the desired Option.
4. Enter details like exchange, expiry date, lot size, order type etc., and place order.
5. Congratulations, your order is placed.