how-to-do-options-trading-in-angel-broking

“How to do options trading in Angel Broking?” is a common question for many beginners. In this post, I will provide everything you need about Options trading in Angel Broking for perfect clarity. 

How to Do Options Trading in Angel Broking: A Quick Look at the Charges

Angel-One-Pricing

Angel Broking or Angel One allows you to open an account for free. However, the platform charges a Demat Account Annual Maintenance of ₹240. Besides, the platform charges a brokerage fee of ₹20 per executed order for Futures and Options.

How to Do Options Trading in Angel Broking: Activating F&O 

The next most important thing to do is activate the F&O segment since the segment is inactive by default. To activate the F&O segment, you must have your income-proof documents ready for submission. 

You can use your 6-month bank statement for the purpose. Once you have the document ready, you are good to go with the F&O segment activation process.

Here are the important steps to activate the F&O segment in Angel Broking:

  • You must log in to your Angel Broking trading account first; you may use the web app or the mobile app.
  • Next, you need to head over to the Settings and then My Profile.
  • Over there, you will see Activate Segment under Account Details, and you must click on it and select the checkbox NSEFO.
  • After that, you can select the Document Type and upload your Document.
  • When you are sure, you can click on the Submit button.

After you submit your request, the segment will be activated within 24 hours.

How to Do Options Trading in Angel Broking: Placing Buy & Sell Orders

You can buy or sell equity or index options in Angel Broking. To enter a position, you must search for the contract, for example, 44500 CE for Call and 44500 PE for Put. After you find your desired contract, you can hit the BUY button if you want to buy or hit the SELL button if you want to sell. However, before you do this, you will need to specify the lot size. 

It's always wise to start with the least lot size, 1, and gradually increase it as your trading improves. Besides, you will need to specify if you want to buy on Delivery or Intraday. Further, you can buy or sell at the market price or a limit price. 

How to Do Options Trading in Angel Broking: Placing a Stop Loss

Options trading is highly risky, and you must always trade using a Stop Loss to prevent big losses. If you don't use a Stop Loss, chances are that your entire capital will be wiped off in just one trading session. Many people made this mistake and realized the importance of placing a Stop Loss. To place a Stop Loss, you simply have to click on your position and click on the exit button. Next, you will need to select SL and specify a Trigger price and a price. For example, if you want to place your Stop Loss at ₹250, your actual price will be ₹250, and your trigger price will be ₹251.

How to Do Options Trading in Angel Broking: What Else?

Even though learning how to place orders and place Stop Loss is a great place to start, this is just not enough for Options trading. Before you start trading, you need a good money management plan and a trading strategy.  

While money management is mainly based on risk tolerance, you can build a trading strategy using price-action or technical indicators. 

After you build a trading strategy, it's important to back-test it in the live market for weeks and months. Doing this will eventually help you spot the places that need improvement. Once you make improvements and are convinced that the strategy has no flaws, you can implement it in real trades. 

No strategy will work with 100% accuracy, and sometimes, your trading setup may not work. However, it doesn't mean that you should give up on your trading setup and try building a new one. News and events can sometimes play a big role in changing the trends in the market. On days like these, your money management will prevent you from making heavy losses.

How to Do Options Trading in Angel Broking: Money Management 

You can't succeed in any form of trading without Money Management. I know it may sound a bit intimidating and technical, but in actuality, it's simple. Here are the steps you need to follow to build your Money Management plan:

  • Determine your lot size and Stop Loss points per trade
  • Next, you will need to determine the maximum number of trades per day.
  • After that, you must calculate how much you will lose in a day if both trades go wrong.
  • Next, you must set a target per trade that will give you double the money of two losing trades. For example, the loss and profit ratio per day can be like ₹1000:₹2000.
  • Once you have set a money management plan, it's important to follow it religiously.
  • Avoid over-trading. Once you are done with your maximum number of trades, close the chart till the end of the market session.

How to Do Options Trading in Angel Broking: Trading Setup

Different traders have different trading setups, which simply means that people see the market from different perspectives. Every trading setup should work as long as you really know what you are doing. However, it's important to get the basics right. The price has three trends: Uptrend, Downtrend, and Sideways. Besides, never expect the price to move straight up or straight down. 

The price moves with corrections. You can expect a trend reversal in the market when the price is overbought or oversold. Further, you can capitalize on concepts like Demand and Supply, Psychological Levels, round numbers, Trend lines, Candlestick patterns, and Price patterns. While it's important to get the hang of price action for every trader, it can take time to learn it. Till then, you can use technical indicators like RSI, MACD, EMA, Bollinger Bands, and more to build a strategy.

You may also like to read Best Indicator for Intraday Trading

However, you need to master just one or two indicators, and as far as the timeframe goes, 15m and 5m work best for Intraday trading. Besides, you must keep your chart as clean as possible, with only the most important levels, to avoid confusion. 

Conclusion

Angel Broking is a great platform for Options trading with zero opening charges, low AMC, low brokerage fees, and excellent trading applications. Before starting Options trading in Angel Broking, you must get yourself familiar with the Angel Broking applications by learning how to place buy and sell orders. 

Besides, you must learn how to place Stop Loss. I have explained it in detail in this post. Once you know how to handle the applications, you must work on your money management and trading strategy. Only then can you go ahead with real Options trading.

How to Do Options Trading in Angel Broking: FAQs

What is options trading?

Options trading is a financial strategy that allows investors to buy or sell options contracts, which are derivatives based on underlying assets like stocks. These contracts give traders the right (but not the obligation) to buy or sell the underlying asset at a predetermined price and date.

How do I start options trading with Angel Broking?

To begin options trading with Angel Broking, you need to open a trading and demat account with them. Once your account is set up, you can log in to their trading platform and start trading options.

What types of options are available at Angel Broking?

Angel Broking offers two types of options: Call options and Put options. Call options give you the right to buy an underlying asset, while Put options give you the right to sell it.

How can I place an options trade on Angel Broking's platform?

You can place an options trade on Angel Broking's platform by following these steps:

  1. Log in to your Angel Broking account.
  2. Select the options contract you want to trade.
  3. Choose the option type (Call or Put).
  4. Specify the quantity of contracts you want to buy or sell.
  5. Set the strike price and expiry date.
  6. Review your order and confirm it.

What is the minimum investment required for options trading with Angel Broking?

The minimum investment required for options trading varies and depends on the specific option contract you want to trade. Angel Broking may have different margin requirements for different contracts.

How do I manage risk while trading options?

Risk management is crucial in options trading. You can manage risk by:

  • Setting stop-loss orders to limit potential losses.
  • Diversifying your options portfolio.
  • Learning and understanding options strategies.
  • Monitoring the market and your positions regularly.

Can I trade options on Angel Broking's mobile app?

Yes, Angel Broking offers a mobile app that allows you to trade options and manage your portfolio on the go. You can download the app from the app store and access your account from your mobile device.

Are there any educational resources for options trading available on Angel Broking's platform?

Yes, Angel Broking typically provides educational resources such as articles, webinars, and tutorials to help traders understand options trading strategies and concepts.

What are the brokerage fees and charges for options trading on Angel Broking?

Brokerage fees and charges may vary, so it's essential to check Angel Broking's current fee structure on their website or contact their customer support for detailed information.

Is options trading suitable for beginners?

Options trading can be complex and carries a higher level of risk compared to traditional stock trading. It's recommended that beginners start with a good understanding of options and practice with a small investment or paper trading account before venturing into live options trading. Angel Broking may offer virtual trading accounts for practice.

Angel Broking is a great platform for Options trading with zero opening charges, low AMC, low brokerage fees, and excellent trading applications. Before starting Options trading in Angel Broking, you must get yourself familiar with the Angel Broking applications by learning how to place buy and sell orders. Besides, you must learn how to place Stop Loss. I have explained it in detail in this post. Once you know how to handle the applications, you must work on your money management and trading strategy. Only then can you go ahead with real Options trading.

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