How to Start Option Trading in India – A Beginner’s Guide

 Are you curious about options trading but don’t know where to begin? You’re in the right place!


In this beginner-friendly guide, we'll walk you through the basics of option trading in India, the platforms you can use, and some key terms every trader must know.


🔹 What is Option Trading?

Option trading is a type of derivatives trading. You don’t actually buy the stock—you buy the right to buy or sell it at a certain price on a future date.


There are 2 types of options:


Call Option – right to BUY


Put Option – right to SELL


🔹 How Option Trading Works in India

You can trade options on NSE (National Stock Exchange) via platforms like:


Zerodha Kite


Angel One


Upstox


Groww


Dhan


You choose an expiry date (e.g., Thursday), select a strike price, and buy/sell call or put options based on market movement.


🔹 Must-Know Terms

Term Meaning

Strike Price The price at which the option can be exercised

Premium Price you pay to buy the option

Lot Size Minimum quantity (e.g., Nifty lot size = 50)

Expiry Last day the option is valid

In the Money (ITM) Option that would be profitable if exercised today


🔹 Benefits of Option Trading

✅ Low initial investment

✅ Can be profitable in sideways or volatile markets

✅ Can be used for hedging or speculation


🔹 Risks to Know

⚠️ 100% premium can go to zero

⚠️ Requires fast decision-making

⚠️ High leverage = high risk


🔹 My Advice for Beginners

Start with paper trading (practice without money)


Watch Nifty/BankNifty option chain


Use apps like Sensibull, TradingView


Never trade with full capital


📌 Conclusion

Option trading can be a powerful tool when used wisely. Start small, learn daily, and never stop analyzing the market.


👉 Follow Finfo Traders for more beginner-friendly content, and leave your questions in the comments!








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