More on Derivatives
By being a trader of a firm, you might get curious to know more about the 5paisa option trading. Isn’t it? If so, then go over these details and get a thorough understanding of option trading and brokerage plus the margin.
But before moving ahead, let’s have a quick glance at the background of the firm.
5paisa was linked to IIFL Securities as it was an arm of the firm, but it became an independent discount broker in India.
The firm is registered under SEBI, which controls and monitors it. Apart from this, the 5paisa allows you to trade under various stock exchanges, including BSE, NSE, MCX, and MCX-SX.
After grabbing the information about the firm, let’s have an understanding ofoption trading.
Options are the type of derivatives contract in which the buyer or seller gets the right but not obligation to buy or sell an underlying asset at the predetermined price.
The traders generally get into the option contract to earn more income and to evade the risk of volatility.
It is required to activate the derivatives segment to trade-in options. The 5paisa option trading procedure to activate the derivatives segment is also included in this piece of information.
So, let’s move ahead to know more about 5paisa option trading.
How to Activate Option Trading in 5paisa
If you want to trade in the option and futures, then the broker provides you with the app for option trading. Using the app first you need to activate the segment. But how to activate option trading in 5paisa? You can activate the options trading through any platform. The procedure will remain the same.
For instance, to understand this, refer to the following steps in accordance with the web portal of 5paisa, i.e., Trade Station.
- Login into the trade station and go to the menu and select ‘Profile’ from there.
- Select ‘My Profile’ under the ‘Profile’ tab.
- After clicking on ‘My Profile,’ a new window will appear, and then select ‘Personal Details.’
- Under ‘Personal Details,’ you can check the segments you had activated while opening the demat account with 5paisa.
- In the same tab, you will get the option ‘Segment not opted.’ Click on the blue pen available on the right side to make the changes.
- A new pop-up window of ‘Segment Addition’ will appear on the screen that will discuss the activation of the segments, including F&O. Click on ‘Continue.’
- A new pop up window will appear that will ask you to upload the income proof documents that will include the following documents:
⇒Income tax return statement (ITR)
⇒Bank statement (last six months)
⇒Salary slip, etc.
- You will be needed to submit two financial proofs to activate the options segment.
- Now click on ‘Save.’
- A new pop screen with the ‘received segment modification request’ will appear to confirm your segment activation.
The segment activation process is not so complicated and can be completed in 5 minutes.
Note: To trade in derivatives, it is important to activate the segment before trading because without enabling the segment, it won’t allow you to execute the order in options.
How to do Option Trading in 5paisa?
After activating the options segment, the trading can be quickly done and possible with 5paisa app. It offers trader the best trading experience with some of its top features, charts, analysis tools, and best indicator for option trading.
You can analyze the stocks or shares of the companies with the various chart forms and reports and hence can take the decisions based on it.
Now, if you want to trade in options and want to know how to do option trading in 5paisa, refer to the following steps to execute the order with options.
- The very first step to start trading in option is to login into the app.
- After that select the scrip, and you will get the window where you can find options to select the expiry date and strike price from the option chain ladder.
- Choose the strike price along with the type of options; call or put and cick on the Buy/Sell button.
- A buying/selling window appears on the screen.
- After this, fill in the Quantity, Price, Mode (intraday or delivery), Order Type (regular or stop loss), and Validity (today or IOC).
- Fill all the essential details and confirm your order.
The trading in options will become a more straightforward process after enabling the segment, and it won’t ask for much time.
5paisa Option Trading Brokerage
Till yet we have discussed the process of activation and the process of how to execute 5paisa option trading.
Now, let’s discuss the brokerage that needs to be paid by the trader to execute trading in options.
The brokerage charges are the charges that are to be paid both of the time, i.e., during the buying and selling of the share.
Some brokers provide the exceptions in which they charge the fee only for one time, either for purchasing the shares or for selling the share.
To know more about the 5paisa option trading brokerage charges, contemplate the segment.
When you’re not choosing a package, the brokerage will be ₹20/order, but perhaps the value addition plan will be subject to the following description. The brokerage charges will vary:
| Segments | Basic Pack | Power Investor Pack | UltraTrader Pack |
| Equity Options | Rs. 20 /order | Rs. 10 /order | Rs. 10 /order |
| Currency Options | Rs. 20 /order | Rs. 10 /order | Rs. 10 /order |
| Commodity Options | Rs. 20 /order | Rs. 10 /order | Rs. 10 /order |
Thus you have to pay the brokerage in the range of ₹10-₹20 to trade in options in 5paisa. Similar goes with the futures trading in 5paisa.
Thus, 5paisa f&o brokerage is the same thus allowing you to make a profitable trade in derivatives.
The broker offers much relaxation and gives you the seamless trading platform that eventually helps you to trade in different assets and mark a profitable trade even when the market goes in a downward direction.
5paisa Option Trading Margin
If you do not have the desired funds to trade, you can opt for the margin 0f the firm to trade more.
Basically, the margin refers to that money that is borrowed from the broker to buy the shares or stocks. It is the difference between the total value of an investment and the loan amount.
5paisa offers the three plans in the margin to the customers, which are as follows:
- Basic pack 5Paisa
- Power Investor Pack 5Paisa
- Ultra Trader Pack 5Paisa
Let’s understand the 5paisa option trading margin by looking at the following table
| 5paisa Option Trading Margin | |||
| Segment | Basic Pack | Power Investor Pack | UltraTrader Pack |
| Equity Option Writing Margin-Sell | 4x | 4x | 4x |
| Currency Options Writing Sell | 3x only for sell | 3x only for sell | 3x only for sell |
| Commodity Options Margin | NIL | NIL | NIL |
Under the different brokerage plans, you can avail the margin facility too. Here to trade in options segment you are provided with 4 times margin to trade in Equity options. While for the currency option one can reap the leverage of 3x.
For commodity options, the broker does not offer any kind of margin facility to its traders.
*The margin provided in the equity and commodity segment is only provided for writing options.
Conclusion
5paisa option trading can be done using any of the trading platforms provided to you by the broker.
To gain a seamless trading experience, do follow the guidelines provided to activate and execute the trade using the web terminal and app respectively.
Also, you can compare 5paisa charges with other discount brokers to prevent yourself from paying heavy fees.
So Activate, execute and trade!
Happy trading with 5paisa.
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