How to do Option Trading in Angel Broking?

A Digital Blogger | | Online Share Trading | No Comments

Angel Broking is one of the most renowned names in the stockbroking industry. So, if you have an Angel Broking demat account and want to trade in options, then relax because, in this article, we will discuss how to do option trading in Angel Broking.

Options trading might sound very challenging at first but when the right option trading strategies are used, it becomes a cakewalk.

There are various stockbrokers that give you the opportunity to trade in the derivatives segment for free and Angel Broking is one of them. This means that you can activate your options trading segment at absolutely no cost in Angel Broking.

Traders often wonder if they need a separate trading account to do options trading, the answer is no, you don’t need another account. Angel Broking lets you trade in options using the same trading account.

Not only this, the broker offers the best app for option trading that smoothens your overall trading journey.

So, let’s begin!

How to Activate Option Trading in Angel Broking?

Before beginning with the trading process in options, you need to activate options trading in Angel Broking. Let us have a look at how you can do that

Open the Angel Broking app using your login credentials and password.
On the left side, click on ‘My Profile;
You will now see your account details, and also a segment of the active segment. Click on that.
Select the F&O segment.
Upload a document for your income proof. (latest salary slip, bank account statement for last 6 months, net worth statement, etc)
Click on submit and you will get a message regarding the confirmation of your activation.

It usually takes 24 hours to activate option trading in Angel Broking.

Not having an account with Angel Broking yet, Open a Demat account and activate the derivatives segment right away.

How to Trade in Options in Angel Broking App?

Once you have activated your account, you can start trading in options in Angel Broking.

To make trading and investments efficient for its users, Angel Broking allows you to trade in options using their Angel Broking mobile app. The app offers smooth user-experience with its advanced UI, technical charts, and the best indicator for option trading.

Let us now have a look at how to buy options in Angel Broking and how to sell options in Angel Broking.

There are two types of options available, Call option and put option. We will look at how to buy and sell both of them.

How to Buy Options in Angel Broking?

Buying an option. In an option contract, two traders of different sentiments (one bearish and one bullish) enter a contract and decide to execute it on a particular day and a predetermined price.

In the case of a call option, when you buy an option, that means that you are bullish on that particular stock.

Therefore you pay the premium. When it comes to the put option, the seller in that case becomes the put option buyer.

This is because, in the case of a put option, the seller gives the premium as he/she has a bearish outlook of the market.

So in simple terms, the option buyer pays the premium to the option seller.

Now let us first see how to buy calls and put options in Angel Broking.

Log in using your login credentials and password.
Now, on the search bar look for the scrip that you want to trade in.
CE is for the call option and PE is for the put option.

You can now use the option chain, to analyze the options properly.
On the left side are the call option and on the right side is the put option. In the center row, you can see the strike price. You can also view the OI on the extreme left and right sides of the option chain ladder.

Now, on the left side click on any strike price for the call option and on the right for the put option.
You will now see a window, click on the buy option.
A buying window will open. Enter the quantity and click on place order.

Your order will be successfully placed.

How to Sell Options in Angel Broking?

Now, similar to buying options, you can also sell options. Option sellers generally enter the market to make a profit from the holdings they own.

They tend to make a profit from the premium by assuming the price of the asset to remain the same or move opposite to the option buyer.

In the case of call options, the seller receives the premium so is the seller of that option contract.

But in the case of a put option, the buyer becomes the seller, because he/she is the one who receives the premium. Now let us quickly have a look at how you can sell options in Angel Broking.

Log in using your client ID and password.
Now search for the scrip that you want to sell an option.
Analyze the option chain, and then click on the most suitable strike price. (left for call and right for put)
A window will pop up, click on sell and proceed.
Now enter the quantity and click on place order.

In this way, you can easily sell options.

What’s the basic difference between buying and selling option is the Angel Broking option selling margin.

This is because selling involves the high risk that makes it essential for the option seller to maintain a specific margin to curb the risk and losses that might occur.

This margin varies according to the asset and on the strike price you choose for option selling.

Basket Order in Angel One

Apart from the simpler process discussed above, you can make use of the basket order in Angel One where you are allowed to take multiple positions in options and place a single order for it using the Sensibull app.

To execute the order, just follow the steps below:

Open Sensibull on mobile or web and log in using Angel One’s credentials.
Click on Option Chain and choose the index or stock for options trades.
Choose the strike prices for buying or selling call or put option.
Here you can add multiple strike prices to take different positions.
Click on Trade and then on Place order.
Your order request will be forwarded to exchange and executed accordingly.

Conclusion

So, did you see how easy is it to trade options in Angel Broking? Once you have seen the option trading examples, read all the strategies, and read the option chain properly, you can easily trade-in options using Angel Broking.

Your equity demat and trading account work for your futures and options as well. Activate your segment hassle-free and absolutely at no cost and start trading in options.

Open your Demat account today, and enjoy the benefits: