Intraday trading with options?

against_tides

Well-Known Member
#11
May I do not get your point. Do you mean: Do not trade on margins, means I use all my money in the trading account on margins to take the highest risk and as many future contract or short options I can.

Or do you mean not to use margins in trading attoll?

If you meant the second point then I highly must disagree with you. Depending on the broker and in what place you trade, margins in option and specific hedge trading is most common and absolute normal. Most simple example: Put or Call credit spreads which reduce the margin needs in the trading account. Of course, not all broker offer this, so you have to talk with your broker about this specific point as you talk with your broker when you want lower turn around cost when you trade higher volumes.
Don't use margins means he should not be getting margin call if the trade goes ackward..as he is a beginner my suggestion is to trade as per pocket..
If you can suggest him clearly with the specific strategy it might be more helpful for him
 

Mishra_86

Active Member
#12
Yes it is possible to do intra day trading with options. Options are highly volatile. If you know how to recognize opportunities to trade intra day then go ahead. You have two options either to trade them directionally or trade option strategies.
 
#13
I wouldn’t recommend options trading to beginners. Its not that easy. But if one is educated about how options work, and know the limited and unlimited loss/profit, then they can enter when they think they are ready. It’s not wise to jump earlier. My suggestion is to have first hand experience with cash market first.
 
#14
To play in option trading is like catching a falling knife. Though you can start with buy options, but never go for sell options, atleast for the beginners.
 

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