Options trading can be intricate a lot more so than stock trading. When you buy a stock, you just decide the number of shares you desire, and your broker fills the order at the prevailing market value or a limitation price you set. Trading choices needs an understanding of advanced methods, and the procedure for opening an options trading account includes a few more actions than opening a typical financial investment account.
( Required to review puts, calls, strike costs and other choices trading terminology? See our post on options trading 101). Compared to opening a brokerage account for stock trading, opening an options trading account needs larger quantities of capital. And, given the intricacy of predicting several moving parts, brokers need to understand a bit more about a potential investor before granting them a permission slip to start trading choices.