If you decide to start investing, you should approach it wisely and use only verified sites and markets. One of the services which give an opportunity to trade without any additional commissions for beginners is Robinhood.
Robinhood is an application that allows you to invest and then trade your stocks. It gives you quite a wide trading experience. It has a wide range of assets to buy or sell. You can use exchange-traded funds, trade-in pre-currencies, and other assets. You can also qualify for different levels of options trading in this service. You can even create a debit card for your Robinhood account. The best part is that the app doesn’t charge any additional investment fees. It is ideal for a person who is just starting out in investing, but it can also be of interest to experienced investors.
But, if it’s options trading that interests you, then it’s regulated by certain rules.
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What do you need to trade options
If you decide that you want to trade options on Robinhood the service will request from you some obligatory information. Such as:
- Your investment goals
- Your level of experience and expertise
- Your financial information such as income
Only when you provide this information will Robinhood verify you and decide whether they will allow you to trade options or not. The program needs to assess if you have enough knowledge and experience to trade options. If you get level TWO, you will be allowed to make 3 types of trades:
- Cash-covered puts
- Covered calls
- Long puts and long calls
If your goal is to get involved in trading level THIRD options, then you have to pass a more thorough test. Robinhood will determine your qualification based on the information you provided previously. If the service decides that you have enough experience, they will give you the right to get permission to trade on the third level. At this level you can make all types of transactions from the second level, as well:
- Credit spreads
- Iron butterflies
- Iron condors
How to enable Robinhood Options
It should not be too hard to do. You just have to:
- Launch the app on your phone
- Tap on Account in the upper right corner
- Then click on Settings
- Go to Options Trading
- Click on Enable button
- At the end you just need to answer a few questions about your investment experience, knowledge and other details
After completing this step you will be able to place your options trades. To do this, you need to:
- Click on the magnifying glass at the top of the screen
- Then you have to find the stock that you want to include in the option trade
- Click on the stock’s name
- Then click on the Trade button at the bottom of the Details section
- Select Trade Options
What’s the fastest way to get approved to trade options
The fastest way to get this permission is to give positive answers to the questions when you enable options trading. To be approved quickly, you need to have a lot of experience with stocks and options trading. You must have a high tolerance for risk. Otherwise, even if you participate in the training without knowledge, you will most likely end up with a failed investment. Remember, gaining experience has to be your top priority before you start trading options.
Splaitor doesn’t provide any investment, money management, or trading advice. Read our Disclaimer to know more.
