Can I trade in US Options from India?

Short Answer

Yes, individuals can trade US options from India. There are many platforms as well which allows the individuals to trade internationally, it just depends on them what they are comfortable the most with and prefer trading from.

Detailed Answer

Introduction to options:

Option contracts are a type of conditional derivatives rule that allows the owner to buy or sell a particular asset at a fixed price before or after the contract expires. Options are referring to as derivatives since the value of the underlying asset is derived from them. Options are referred to as influential because they have the ability to increase the value of anyone's portfolio.

Individuals can purchase a call option on this commodity and sell a put option on it. A ‘call option' is one that allows you to buy an option that will help you buy shares later, while a ‘put option' is one that allows you to sell an option that will allow you to earn shares later.

Trading in US options in India:

Interested individuals can exchange options in the United States or any other legal foreign nation from India. To trade derivatives, you will need an account with an international broker registered in the United States. Many Indian brokers, such as ICICI Direct, etc., offer an Internationally Brokerage account that enables Indian residents to trade on US stock markets.

Tagged With: options markettradingus optionstrading from indiacalls and puts
Categories: Option Trading
Ask your query and our expert community would be happy to help
Discussion (1)

    Trading in US options contracts si quite possible. There are several brokers such as ICICI, HDFC offering such options. However, keep on thing in mind that you are looking at a 7 times profits or loss ratio. Also, the brokerage might be high, so it's no feasible to trade extensively which might pile up your brokerage count and eat a significant chunk of your expenses.

Related FAQs

What is Call Option and Put Option?

Options are a form of conditional derivatives policy that allows the holder to buy or sell the key asset at a fixed price before or after the agreement expires. The two most impactful options are Call Options and Put Options.

What is the minimum amount required for Options Trading in India?

Options are of two types- call option and put option. You need quite an amount of money to trade in options because it has costs such as premium, brokerage. etc. To know more about the topic, read the detailed version.

What are Stock Market Timings in India? Normal Trading Hours

The operating hours for the Indian stock market is from 9 AM to 4 PM while remaining off on government holidays and weekends.

What is Uncovered or Naked Options Trading?

Naked or Uncovered Option trading is a type of trading/speculating where a Call or Put option is bought or sold by different individuals at the same time expecting different price direction movements. Naked Option trading is a Zero-Sum game which means that the Profit for one is a Loss for the other individual.

Are puts riskier than calls? Risks to Consider

Puts are Calls are both risky in their own terms. For calls it is necessary to make decisions well as there are chances that you make loose the premium. In case of puts it is important to strategize the the options well.

What is an Iron Condor trade in options?

An Iron Condor is a 4 legged hedged option strategy that includes selling 1 slightly OTM (Out of The Money) Call as well as 1 Put option and, buying 1 Slightly Far OTM Put & 1 Call options in order to cover the risk of the Naked short positions. This strategy is implemented when the overall outlook of the underlying asset is neutral or rangebound and no major moves in any direction are anticipated. The maximum profit and loss are capped in this strategy, and by hedging, margin benefits can be enjoyed.

How much money do I need to start Stock Trading in India?

Its all based on the share you wish to purchase. You can invest one rupee or two rupees in the stock market while there is no maximum cap on your investment.

What are Basic Necessities to Trade in Stock Market Hassle Free?

Learn the basic necessities to trade in stock market in India. Easy stock trading tips for a hassle free experience as a trader or an investor. All you require is an internet connection, laptop or smartphone, active bank account, demat and trading account and there you do, trading in the stock market is simple as booking the movie tickets online.

What can high open interest rate indicate about options?

Open Interest or OI is a parameter to measure the number of Outstanding contracts (Not Squared off) at a particular strike price. The near strike prices to the Spot has higher Open interest compares to OTM (Out of The Money) contracts. Higher OI has many benefits like High liquidity and low spreads and some disadvantages.

What is the Best strategy for Options Trading?

There are many complex Option Trading strategies out there but the most profitable are some of the simpler ones. The top 3 of them are Long & Short Straddles, Long & Short Strangles and Bull/Bear spreads.