What is Options Trading?
Options trading is a way to buy and sell contracts that give you the right, but not the obligation, to buy or sell a stock or index (like NIFTY 50, BANK NIFTY, etc.) at a fixed price, within a specific time frame.
Think of it like placing a bet on whether something will go up or down, but with tools to manage your risk and start with less capital.
Here’s how it works, let us broken down in simple terms:
- Index: In options, you can trade individual stocks (like Reliance or TCS) or Indices (like NIFTY 50, BANK NIFTY)
- Expiry: Every option contract has an expiry date, the last day the contract can be used.
- Strike Price: The strike price is the price at which you agree to buy or sell the index in the future.
- Call & Put: CE/Call means you think NIFTY will go above 24150 and PE/Put means you think NIFTY will go below 24150.
- Lot Size: How Many Units You Trade. Options are traded in lots, not individual units. For NIFTY, 1 lot = 75 units
- NIFTY 24 APR 2025 24150 CE: Nifty Call Option for 24 April Expiry
Order Types
- Limit Order: You specify the exact price you want to buy or sell at.
- Market Order: You buy or sell immediately at the best available price.
How to trade using OptionX.trade
Step 1: Go to the OptionX platform and sign up.
Step 2: Enable Paper Trading from top toolbar
Step 3: Go to widgets from the top toolbar and select Price Ladder
Step 4: Index, Expiry, and Qty are already selected
Step 5: Click on the Bid Column to place
Step 6: Place a reverse order or click on Exit button to Exit the order.
