Options trading in India is in its infancy when compared to the US.  Nevertheless, since a significant number of visitors to my website come from India, I think it is only fitting that I should blog about how to use stock options in the Indian markets. 

Firstly, Congratulations on your decision to investigate the use of stock options!

If you are considering adding options to your investing portfolio, you are not only making a very wise decision, but are in the minority of investors.  Some of the greatest investors in the world, including legendary Warren Buffet, routinely use options to safeguard their investments as well as generate income.

Secondly, you’re probably wondering what is the next step to learning how to trade options?

Begin by realizing that learning to use stock options successfully takes time.  You have to be committed to learning the nuances of how options work and when to use which option strategy.  Fortunately, you have come to the right place. This website 123stockoptionstrading.com is focused on helping beginning investors and newbie traders learn how to invest and trade successfully.  I have no hidden agenda, except perhaps to trigger the law of attraction to produce positive results in all my ventures (for more on this see How to get Rich).  Your next step is to read How to Learn Investing and Trading – an article focused on the first steps ALL beginning investors and traders should take regardless of their location in the world.

FIND THE RIGHT OPTIONS TRADING BROKER

The next major step to successful investing and options trading is to find a good broker.  This is an extremely important decision, and there is no ‘one size fits all’ choice here.  Stock investing and options trading may be conducted via a bank or a brokerage.  Some institutions may have online trading software, while others may not.  Amongst the ones who profess to have an online trading platform, each may have different capabilities.  Be wary of jumping to choose the most complicated web software with many ‘bells and whistles’ – if your trading needs are few, a simpler interface that you understand may be better than a complex one that you don’t. 

The following is a non-comprehensive list of sites that have broker comparisons:

http://www.selectabroker.com/India/ – Click the ‘options’ box to select ones that offer options.

http://tracenotes.com/reports/brokers-india.php

http://www.chittorgarh.com/comparebroker/icicidirect-vs-indiabulls/1/3/

Some institutions have representatives to speak with prospective clients, and hold seminars and classes to teach clients how to invest and trade.  Since brokerages and banks make their money via commissions when clients trade, it is in their best interest to teach you how to trade successfully.  The more you invest and trade, the more money they make.  Take time to review each broker’s claims, make a list of the top candidates, and call and speak to their representatives before opening an account. 

Of course, there is much more that goes into learning how to trade stock options – but, the above is a good starting point.  I will write more shortly, until then … 

 Happy Trading!

If you who currently trade stock options in India –

Do you have a favorite broker? If so, who? Why did you did you choose your broker?

If you don’t currently trade stock options in India –

What are you looking for in a broker? Take a moment to leave a question that other experienced folks might answer.