Traders use various applications and trading software to trade several stocks and commodities daily. Options trading is getting popular nowadays and traders prefer software that can provide advanced features for building the option strategy along with handy calculators. Many options trading platforms are available in the market, so picking the right is sometimes tough especially for first-time traders.
So here, we are going to discuss the key highlights of an options trading platform and also pick some of the good alternatives. What you should look for while choosing the options trading software? Let us dig deeper into these details.
What is Options Trading?
Options trading is a type of trading that allows you to purchase or trade stocks, ETFs, and so on. The trader has the right but not the obligation to buy or sell securities within a specified period.
An options trading occurs at a specific price and within a specific date. It offers the trader the versatility to trade or not in a security or commodity at a specified date or price.
Options trading is usually a little bit difficult to master. But if you can successfully know the tricks, then this type of trading can be really helpful to make a large amount of profit in a short span possible.
This is profitable as you don’t need to pay the full price of a security in case of an options contract. At the same time, you can generate a huge profit when the price of that security goes up. It is often termed as Leverage in options trading.
Options trading can also help you to restrict your losses in case the price of a security goes downward. It is often termed as hedging. The right to purchase a security is termed as ‘Call’. On the other hand, the right to sell a security is known as ‘Put’.
Features to Look for in a Good Options Trading Platform
As you can also guess from the above explanations, options trading is not easy. Thus, to generate income, you need a trading platform that offers all the required aspects to pursue options trading. Some of the basic features that you should look for are given below:
Reliability should be the first factor for choosing a good options trading platform in India. A platform that can help you generate decent profits all the time.
Even though generating profit is not always possible, but a good trading platform can help you do so by providing timely and accurate technical analysis.
Thus, the reliability of execution, deposit, and withdrawals of funds should be your priority while choosing a good options trading platform.
The second thing should be analyzing the license of the trading platform. Various authorities use different licensing, which makes it very difficult to pick the right trading platform.
Thus, it is better to use such platforms, where a monetary authority closely analyzes and audits the platform in terms of trades, deposits, and withdrawals of funds.
Fees charged by any trading platform is a very crucial factor for choosing the right options trading platform in India. If you need to pay a lot of fees for using a trading portal, then it may not sound wise as it can eat all your revenue.
Traders usually avoid these platforms as the profits will never grow as you would like them to.
Another important feature to look for is the ease of using a trading platform. Most of the platforms which are available in the market use some standardized software for trading.
But some of them are easier to use than others, and for the obvious reason, they win the race.
Examples of Good Options Trading Platforms in India
Now, it is time to pick some of the trending trading platforms in India that fulfill some, if not all the criteria mentioned above.
On the first of our list is an amazing options trading platform called Sensibull. It is a third-party option strategy platform that allows all types of traders to get suggestions on option trading strategies. Traders can very easily analyze the market and execute the options trading by using this online tool.
2. Upstox Pro
Upstox Pro is a free to use web-based options trading platform. This trading platform is known for its quick performance and ease of use. By using Upstox Pro traders can trade across exchanges like BSE and NSE.
The platform is accessible from both Windows and Mobile devices. Developers can also make use of the APIs and third-party integration to make their apps on this platform.
Zerodha offers two types of options trading platforms such as Zerodha Pi and Zerodha Kite. Both of them are very easy to use and offer several advanced features such as charting, back-testing, data widgets, third-party apps to suit the needs of all types of investors. Traders can trade across multiple exchanges such as NSE, BSE, MCX, and so on.
So, now we hope you got the idea of the key features you should look for while choosing a good options trading platform in India. So which feature is more important to you? Tell us in the comment section below.