Saturday, May 18, 2024
CEOWORLD magazine - Latest - CEO Advisory - What is Options Trading? Options Trading in the United States

CEO Advisory

What is Options Trading? Options Trading in the United States

An option is simply a contract whether to buy or sell stock at a certain price that has been pre negotiated within a certain time limit referred to as the expiration date. Traders and investors sometimes prefer trading options which are more flexible and help them manage any risks that they may incur.

Option traders working in the US should be registered by the Securities and Exchange Commission as a way of regulating the market of option contracts. Options trading also require traders to collaborate with brokers such as Australian traders who assess their experience in trading while at the same time helping them, understand the risks involved in opening option trading account.

Options trading help to predict outcome using the power of leverage while at the same time saving on capital. It offers a wide selection of option contracts for underlying securities such as stock and indexes thus increasing flexibility. It also increases the power to act on new market niches that are more likely to have higher potential.

Some of the Options brokers that forex etx traders go for in the US are discussed as follows:

1. E* Trade

Options such as equities, indexes and futures are provided at E*Trade. They also provide a 50₵ equity per contract by placing 30+ stock or option trades per quarter. It allows placing a multileg trades through single order placements possible.

E*trade provides a program known as the Dime Buy pack Program. This is cheaper for short options. It provides commission free options. To buy – to – close for 10 ₵ or less is quite convenient. Management of risks such as pro is possible since commissions are free here.

2. TD Ameritrade

Ameritrade options do not require year to year maintenance.  It offers free platforms with no subscription fees. This account also avails mobile apps and integrated option strategies that are useful for online trading. They charge $ 9.99 per option contract.

3. Fidelity

This platform charges $ 7.95 and $ 0.75 per contract.It also provides features and tools to monitor how prices fluctuate within the global market.

4. Questrade

This has support options such as IQ Edge and IQ web to choose from. The IQ Edge option provides traders with multileg option trades. $ 0.75 is charged per every contract.

5. Scottrade

Unique trade option strategies are available here. Some of the strategies implemented by Scottrade include income, growth and speculative strategies. Its charges are $ 1.25 per option and a brokerage charge of $ 7. It also offers option exercises and assignments for traders to familiarize themselves with options trading at $ 17.

6. Charles Schwab

Options trading with Charles Schwab comes at less prices due to discounts offered. Base charges go for $ 8.95 per trade while each contract goes for $ 0.75. Option chains and option charting are also common here. An option screener is also provided to trader’s selection. Single order placements for straddles and spread are also supported here.

7. Interactive Brokers

This offers a tiered structure based on contracts traded against an option premium value. The more option contracts traded, the lower the brokerage charge per a contract. One option contract goes for a minimum of $ 0.25. It also has detailed reporting features for options of risk management.

8. Trade King

This provides security classes as well as tools such as option chain display, option scanners and option valuation calculators necessary for option trading. A base fee of $ 4.95 is required in addition to $ 0.65 as charges for one contract.

9. TradeStation

The Option Station Pro is an option platform introduced by TradeStation incorporating new improved features and tools for quantitative analysis. These tools for options trading include spread management, graphs that are three dimensional and data analysis. They charge $ 0.20 per contract and a brokerage fee for multiple packages at $ 4.99.

Have you read?

# Best Universities In The World For 2018.
# Best Fashion Schools In The World For 2018.
# Best Hospitality And Hotel Management Schools In The World For 2018.
# Best Business Schools In The World For 2018.

Add CEOWORLD magazine to your Google News feed.
Follow CEOWORLD magazine headlines on: Google News, LinkedIn, Twitter, and Facebook.

This report/news/ranking/statistics has been prepared only for general guidance on matters of interest and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, CEOWORLD magazine does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.

Copyright 2024 The CEOWORLD magazine. All rights reserved. This material (and any extract from it) must not be copied, redistributed or placed on any website, without CEOWORLD magazine' prior written consent. For media queries, please contact:
CEOWORLD magazine - Latest - CEO Advisory - What is Options Trading? Options Trading in the United States
Aimee Lee Webber
Editorial Aide/Reporter at The CEOWORLD magazine. Nationally Syndicated Advice Columnist. Generally prefer dogs to humans. Loves dragons. New Yorker.