Sharekhan- How to trade, buy and sell, options?

Published on Monday, September 3, 2018 by Chittorgarh.com Team | Modified on Monday, July 18, 2022

Sharekhan offers trading services in equity, commodity and currency options. If you have a trading account with Sharekhan and a demat account with any of the registered depositories in India then you can buy and sell options.

This article aims to answer frequently asked questions by new Option traders like-

• How to place a BUY order for Options on the Sharekhan website?
• How to sell or square off options in Sharekhan?

Platforms To Trade Options In Sharekhan

Sharekhan offers 3 platforms to buy and sell Options-

• Sharekhan website- A free web trading platform.
• Sharekhan Trade Tiger- A free installable trading platform.
• Sharekhan Mobile App- A free mobile trading application.

In addition to these, Sharekhan also offers you the facility to dial-n-trade wherein you can call their representative and request him to place a buy or sell order on your behalf.

How To Buy Options in Sharekhan

4 Steps to buying/selling Equity or Nifty Options in Sharekhan

• Visit Sharekhan website and log in using the ID/password given in the mail.
• Go to TradeNow section of the website
• Understanding Option Chain
• Place a Buy Call/Put Option Order

Now let's discuss each of these steps of buying a Call/Put option in detail-

Login to Sharekhan website

Open a browser (Chrome/Internet Explorer/Mozilla Firefox) in your computer and enter www.sharekhan.com. On the right side of your screen on the top menu, click on the green colored 'LOGIN/TRADE' button. The login page will pop up on your screen wherein you need to enter your Trading Login ID or Registered Email ID and click on the 'Next' button. Enter the password to log in. You will be taken to your account dashboard.

Go to TradeNow section of the website

On the dashboard page, on the top menu, click on the TradeNow page. This is the page from where you trade in all available instruments like equity, derivative, currency and mutual fund etc. Next, move your mouse to the green colored 'Equity' button and click on it. It will open a drop-down menu. Choose 'DERIVATIVE' to enter the F&O dashboard.

In the F&O dashboard, you can get a top-level view of all your investments in Futures and Options. You also know about the Funds available in your account. You can also add funds from here if required.

Please remember that as per SEBI regulations, you need to keep separate funds in Equity and Commodities. The funds available in Equity can only be used to trade Stocks, Equity Futures & Options, and Currency. So, if you already have sufficient funds in your Equity balance to trade then you can skip this step.

Next, click on the 'Option Chain' tab available on the top menu.

Understanding Option Chain

The Options Chain is highly useful for traders. Sharekhan is one of the few brokers who give you direct access to Options chain on its website. You can also get access to Options chain on the NSE website.

An Option Chain is a listing of important data like Open Interest, Volume, Implied Volatility, Ask Price, Ask Quantity etc., of Call and Put Options of a specific underlying and expiry period.

If you are new to Option Chain and want to understand it, you can read our detailed article on 'How to read Option chain'.

Place a Buy Call/Put Option Order

Steps to place a buy Call/Put Option-

1. You first need to choose the exchange where you want to place the order. Choose your choice from NSEFO or BSEFO in the tab marked in red color as 1.
2. Next, you need to select the Option you wish to invest in.
3. Select the expiry period of the Option you want to invest in.

Based on your choices, you will get the Option chain data. The data on the left of your screen is for Call Options while on right is for Put Options. You can place a Buy Call/Put Option order from this Page. To place an order, you need to-

1. Click on the radio button adjacent to your strike price. For Call Option, click on the buttons available at the left of your screen and for Put Option, click on the right of your screen.
2. Now click on the 'Place Order' button on the top of the screen. An order page will appear as a popup in your screen.
3. In the order page, choose whether you want to Buy/Sell, enter the quantity you want to buy, your bid price and order validity choice.

The data on the right of the order page is the best 5 bids for the Option at that time. It is real-time and keeps changing as the trading goes on in the exchange. You need to select your order price based on this data. Also, consider the number of sellers and offer quantity to arrive at the best price for your order.

1. Click on the red colored 'Place Order' button. Next, you will be asked to enter your trading password. If you don't have a trading password then you can authenticate by generating an OTP.
2. You will get a confirm order page. Check the details of your order and confirm your order.

Your order is placed. Your order is placed on the exchange. Most beginners to Options trading commit a mistake that successful placing of an order means the order is executed. But it doesn't always happen. Many times, there are no sellers available for the price you quoted and hence the order remains not executed.

To check the status of your order, click on the 'Reports' tab on the top of the menu. The reports section contains details on all the Options order placed by you. It tells you about the executed price, date, time etc.

How to sell a Call/Put Option on Sharekhan?

The process to place a SELL Call/Put Option order is similar to the BUY order in Sharekhan. In the order page, select SELL in place of BUY. The rest remains as in the BUY order. However, there are a few things to keep in mind-

• Options based on company stocks are American styled meaning they can be sold anytime within the expiry period whereas Index options are European styled and can only be sold on expiry. To come out of a trade in Index option before expiry, you can square it off by taking an opposite trade. So if you have bought a Call option then you can sell a Call option of similar lot size, underlying and expiry. You can go to the 'Reports' section and square off an Option.
• Selling Options require you to maintain a margin. For buying an option, you just need to pay the premium.

How to cancel or modify Options order?

You can only cancel or modify orders that have not been executed. To cancel or modify an existing order, go to 'reports' section of the website. Here, you will get a list of all orders placed by you within a specific period. Check if your order is executed or not. If not then select the desired order and cancel or modify by following the required steps.