Alternatives trading can be intricate much more so than stock trading. When you buy a stock, you simply decide the number of shares you want, and your broker fills the order at the dominating market value or a limit cost you set. Trading alternatives requires an understanding of innovative techniques, and the process for opening an alternatives trading account includes a couple of more steps than opening a typical investment account.
( Required to review puts, calls, strike costs and other options trading lingo? See our post on alternatives trading 101). Compared to opening a brokerage account for stock trading, opening an options trading account needs bigger quantities of capital. And, offered the intricacy of forecasting numerous moving parts, brokers need to understand a bit more about a possible investor prior to awarding them a consent slip to start trading choices.