You can activate F&O in your account by making a request here. Stock and currency derivatives can be activated by uploading your proof of income. To activate the commodity account, see How do I open a commodity account?. Nithin Kamath, CEO and founder of Zerodha, says that in the past year, he has seen the alarming trend in the markets of retail investors turning to buying options.
Zerodha recently launched a tool called Nudge to alert traders to be more cautious when buying options. Buying options ruins most retailers Because they don't understand the risk of leverage, the average reduction, impact costs of 26%, said the founder of Zerodha in a tweet. The stock market can be the most difficult place in the world to make easy money, especially in trading options strategies. On whether option writing is likely to make greater profits, Zerodha founder and CEO Nithin Kamath said in a tweet that it's possible, but only when you compare risk with buying options.
If you may not be confident in buying gold directly, you can still benefit from market volatility when trading gold futures and options. Therefore, the CEO of Zerodha suggests that if you are taking a directional view of call options, always trade with the monthly expiry, you will have much more time value and therefore a higher chance of making a profit compared to weekly trading. Just as a car engine needs to be running, it's important that you understand the basics of options trading before diving deep into trading. Options trading can often leave traders speculating and worrying about how to go about it.