Can I trade in US options from India? Is there a way to buy and sell US options from India without any efforts?

I want to trade in US options from here (India). What are the ways in which I can trade in US options? Are there any extra charges or fees? Can someone explain?
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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.

You can easily invest in US options from India through two ways:

  • Direct Investments

In this mode, you have two options as well:

  1. You can open an international trading account with the help of your domestic broker.
  1. Or you can open an international trading account with a foreign broker itself.
  • Indirect Investments

Indirect investments can be made through mutual funds, ETFs or online new apps.

In both modes you have to do proper research, risk assessment, choosing the platform, opening an account, adding funds and then only you should start investing. The US market is an excellent hub for opportunities for Indians and they must use it.

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Categories: Option Trading
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Discussion (16)

Is anyone actually trading US options from India ? How does tax work in such a case in India ?

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 :(

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.

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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.

Which is a better platform Sensibull or Opstra for Options trading?

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Both of them provide all the necessary tools like OI (Open Interest) Charts, PCR (Put-call Ratio), IV (Implied Volatility) chart, etc. But the main question lies, which one of them is a better platform for Options trading. Let's find the answer to that question.

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 Open Interest in Options Trading in Stock markets? Examples

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.

How to become a profitable Options Trader in India?

With the increasing exposure of the stock markets, more and more people are trying a hand in options trading. Options trading have become a lucrative place for individuals to earn money. The reality is certainly different. More than 95% of individuals lose money in Options trading, There are various reasons behind this. Find out the reasons for losses and the steps by which you can be a profitable options trader here.

Which is the best stock broker for beginners in India?

Discount brokers have gained a lot of popularity in the past couple of years. Zerodha is currently India's largest and most trusted discount broker which is also the best option for beginners. It has all the necessary qualities required for a good broker like low commissions, low-maintenance charges, high-quality trading terminal, etc.

Is online trading safe in India?

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.

Why is Options Trading considered risky?

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.

What is a Collar option Strategy? When to use it?

A collar option strategy is a multi-leg option strategy that involves an existing long position in any security in the Equity or Futures market and buying an OTM (Out Of the Money) Put option and selling an OTM Call option in order to hedge the existing long position from any short term bearishness. The overall Profit and loss are capped in this strategy and this strategy is implemented when the overall outlook of the underlying asset is bearish.

How much money do I need to begin Options Selling?My friend said option selling is profitable but how much money is required?

Option Selling requires large capital. Due to this many small retail traders resort to option buying where the margin money required is very less. Although with various strategies you can reduce your overall risk and margin required in Options selling. Know more about how much money is required to start option selling. The difference in the margin money required for selling a naked Option vs Selling a Hedged Option here.