IIFL Options Trading

If you are a new trader or an investor, then IIFL Options Trading might seem to be a little daunting to you.

Portfolios of active IIFL traders and investors are developed on precise trading and investment segments offered by the IIFL, such as Equity, Mutual Funds, Commodity, Currency, IPOs, etc. IIFL Options Trading is also an asset class that has multiple advantages when done correctly.

However, moving further, it is vital to know the IIFL and options trading first.

It is one of the full-service stockbrokers in India that caters its financial services to more than 4 million customers across the globe.

Embraced in 1995 by Nirmal Jain, IIFL offers comprehensive and dynamic features, tools, and robust trading platforms to its customers. IIFL Branches are over 4000 branches across 900 cities of India.

Here, you might have got the essential information in regards to the IIFL. Now, it’s time to have an understanding of Options and Options Trading.

Options and Futures are a part of Derivatives. If you are into Options then you should also know about IIFL Futures Brokerage.

Also, know about IIFL AMO, and IIFL Advanced Research.

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IIFL Options Trading Meaning

Options are a part of derivatives since they derive their value from an underlying asset such as stocks, shares, or securities.

Options are the contracts that give an allowance to the trader or investor to buy or sell an asset at a fixed price or before the expiration of the contract.

Hence, in IIFL Options Trading, a trader or an investor can trade in a specific asset before its predetermined date to get higher returns, which will ultimately enhance their portfolio.

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Options Trading in IIFL

IIFL Options Trading allows its customers to trade in different types of options that can give them profit in many ways. Options Trading with the IIFL requires two parties- The buyer and the Seller.

The buyer is the one who buys the shares or stocks and pays the premium. Buyers hold the right to sell the option when required. Contrary, the seller is allowed to sell the option only if the buyer permits him to do so.

Some of the types of IIFL Options Trading are as follows

1. IIFL Call Option– Call option in the IIFL provides the holder the right to buy an asset at a particular time, not only the obligation.
2. IIFL Put Option– IIFL Put option offers the holder the right to sell the underlying financial assets at a pre-defined date in the future.

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Process of Options Trading in IIFL

If you are an investor or a trader registered with India Infoline and are interested in doing Option Trading with them, understanding their options trading process is quite essential.

If you have an understanding of the process, then you can smoothly trade across its various platforms.

The process of Options Trading in IIFL is as below

The method of options trading offered in India Infoline is the European option. The customers of IIFL Options Trading exercise the buy or sell process only on the expiry date.

Hence a trader in options trading cannot buy or sell stocks before its expiration date. In IIFL, the call option and put option take place only on the date of option maturity.

Seems to be interested in PMS? Why not to know about IIFL PMS and reap its benefits.

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IIFL Options Trading Charges

Once a trader, whether it’s Intraday, Margin or Delivery trader registers with a stockbroker such as IIFL, he is entitled to pay a certain amount to avail the services offered by IIFL.

Once you have received your welcome kit after opening a Demat account, you can instantly start your trading.

While trading, once you opt for Options Trading and buy/sell trade in Equity, Commodity, or any other segment, you will be required to pay a brokerage fee.

IIFL Options Trading charges are as follows

 

These charges are levied by IIFL and can be changed as per their choice and requirement.

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Closing Thoughts

From the article mentioned above, we can precisely analyze that IIFL is a full-service stockbroker offering impeccable trading and investment services to its customers since 1995.

To start options trading with the IIFL, it is crucial to have a Demat account with them, and also an understanding of the basic concepts of options trading is fundamental.

IIFL Options Trading can be done in a European process means a trader or an investor can buy or sell an underlying financial asset such as stocks, ETFs, shares, etc. on the option contract expiry date.

To avail IIFL services, it is crucial to pay a certain amount of option brokerage charges to IIFL when a particular asset is bought or sold by the investor.

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Wiling to open a Demat Account, Please refer to the below form:

 

Know more about India Infoline (IIFL)