Options Trading Tutorial

Thinkorswim Options Trading Capital Requirement?

I want to open an account on thinkorswim in order to learn more about options trading but don't have a lot of money to spare. I have about $500, would that do?

Public Comments

1. I have heard great things about Thinkorswim and found out that you will learn the most about options by using that $500. You don't need a lot immediately, but it is enough to get you going and to get more interesting in options. I would say go for it.
2. You can verify the minimum required to open the account with Thinkorswim by reviewing their website. but $500 is not sufficient to open a brokerage account with any one with the intention of trading. One does not learn trading by doing actual trading. You should start paper trading and while doing that, read all you can about options Before anyone starts trading and/or investing, there are four basic fundamentals that you should have in place. 1- A written sound trading/investment plan with rules that will not only help you but more importantly protect you, mostly from yourself. 2 - Sufficient trading/investment capital. Use your own money, there’s no need to go into debt so that you trade/invest. 3 - A written money management program in place. 4 – A full and complete understanding of the rules & regulations of the industry Now that I preached to you, here are some websites that will get you some professional directions. http://www.schaeffer.com/ http://www.zacks.com/ http://www.options-trading-advice.info/ http://www.optionseducation.org/ Good luck
3. Your option strategies should not be governed by your capital/margin. Therefore I would not think it was sufficent. In UK terms £2000 (roughly $4000) is a starter, but to keep a decent strategy going I would suggest £5000+ It depends I suppose what you are doing exactly. As someone said; don't try to learn as you go along. As you lose all your money (or more) you will hear yourself saying "Oh, I didn't realise that". Learn some first principles first like how options behave under all circumstances and try to model what will happen to your options under various underlying movements. Always be prepared for the unexpected! Some snippets of info on options, going short and CFD trading on http://www.shareworld.co.uk (also a realtime Q&A)