Options Trading 101: What's It Cost to Trade Options?

published 4 weeks ago by ClayTrader

For those of you who are beginners to the stock market and options trading in particular, a very wise and logical question you are probably asking is this: how much money do I need to trade options online? It's a fantastic question as it shows you are doing your best to manage your time and don't want to invest your time learning more about a strategy that you won't even be able afford to implement. Stock option trading is a great way for traders to get involved with higher priced stocks that, on the surface, seem unattainable because of their high share price. When you get started with options trading though, you enter into an entirely new arena that allows a great deal of flexibility with the stocks you trade and the strategies you use. The best part is, when it comes to determine how much money you need for an option trade, the math is about as simple as it gets. Sure, a calculator makes life a bit easier; however, if you are able to count to 100, you'll be able to understand the math of options. Let's talk some options trading 101 and show you just how much money you would need to get involved with the awesome market of stock options!

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