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.
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Discussion (16)
Through which platform can we do US option trading NYSE ?
You can choose platforms like TD Ameritrade, Charles Schwab, Interactive Brokers. They will allow you to open trading accounts and invest in US options and stocks.
Kotak, Interactive brokers and Kotak are also good platforms.
Even though it is legal to trade options from India in the US or any other foreign country, but I think trading in the Indian market is a better option than in the US because there will be additional fees and a time zone difference so it will be tough. But for big traders it can be beneficial as there will be more opportunities.
Surely agreed! option trading involves a higher risk profile than trading in stocks or other financial securities and also involve using different strategies than usual and tradtional stock trading ones. Trading in Indian options is a better choice for beginners in trading.
Please suggest platform for trading US options from India Interactive brokers no longer allows :( Shravanrayhaanpaul@gmail.com
An Indian wanting to invest in the US options can go for foreign brokers like Ameritrade, Charles Schwab etc. They will allow you to open trading accounts and invest in foreign options.
Was it possible to trade India options earlier using Interactive Brokes ?
through which platform we can do US option trading ?
Hii, am from us. Suggest some best options.
Asking financial advise randomly on web wont work too well !
Getting suggestions randomly online is a sure shot reciepe to loss .. :)
Very well said !
Trading options in the US is possible, but they involve many hassles. In the first place, the time difference will make it difficult to monitor and place trades. Furthermore, the brokerage will be extremely high and not feasible for traders to trade in options from India. Apart from this, currency conversion charges and other costs will act as barriers to extract sufficient profits.
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.
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.
If you're looking for a straightforward and comprehensive take on options trading, then Sensibull should do the job perfectly. However, if you're and expert and want more complex trading tools, then Opstra is the one to choose.
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.
Trading in India is completely safe as all the online brokers are registered by SEBI, which is the regulating body that regulates all the trading activities in the country. Apart from this, there are certain external risks involved in trading like Market Risks, Volatility risks, and over-leveraging, etc. These types of risks can be minimised to some extent by hedging but cannot be eliminated completely.
Open Interest is a parameter used by technical analysts and options traders to judge the mood of the market. Open Interest is the total number of outstanding option contracts in a particular strike price of an underlying asset. The OI is an important factor as it defines liquidity and the total number of contracts that are traded at a particular point in time.
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.
Basket orders means a customized bunch of shares which can be traded by investors at once. It is one of the best ways as it also helps in diversification of portfolio and helps you the handle the stocks in the best way possible.
If you forget to square off your option contract at the end of the day, the contract will automatically be settled if it's an in-the-money option. The contract would be settled on the expiry date and will be sold at the market price.
Sensibull is an online Options trading platform that provides various Analysis tools that can be used to have a better understanding of the Options as well as to create and deploy various Option Trading Strategies that can be used by Investors & traders to Speculate as well as Hedge their existing portfolio. The Option Chain is an important feature of Sensibull. It is discussed in detail below.
Options trading is different from traditional share trading in many ways. Trading in options includes multiple factors like high leverage, delivery obligation on the date of expiry, unlimited loss potential, etc. All these factors make trading in options riskier.
Jatinder Singh
Is anyone actually trading US options from India ? How does tax work in such a case in India ?