How are Trading Apps Revolutionising F&O Trading in India?

Time is of the essence when trading derivatives like Futures & Options. Even a few minutes of delay in securing the trade can lead to variation in the price of the underlying asset, thus affecting your profits.

Online trading has bridged the gap between the trader and the time lag to trade. However, trading apps have moved one step forward and not only have revolutionised equity but also F&O trading in India by providing in-depth market insights on the convenience of the mobile screen.

Before diving into how exactly trading apps have revolutionised F&O trading, let us take a brief look at the concept of options trading.

What Is Options Trading?

Options trading enables a trader to buy or sell underlying financial assets like stocks, commodities or currency at a specific price on a specific date. The trader has the right but not the obligation to execute the options contract. 

A buyer/seller of a call/put option has a scope of profit that is unlimited, while the loss is limited to the premium paid. On the other hand, the seller/buyer of a put option has limited profit potential and unlimited risk if the contract is executed. 

A lot of web platforms and mobile applications offer the ability to trade derivatives. However, what is the role of these trading apps in revolutionising F&O trading? Let’s find out. 

Why is Mobile App for Option Trading is Beneficial?

Trading apps like Dhan combine features loved by F&O traders and offer them an intuitive interface on their mobile screens. Here are five ways in which options trading apps can revolutionise F&O trading in India.

1. Trade On the Go

With trading apps, you don’t have to wait to get to a secure computer to initiate your options trade. Simply fire up the app on your mobile device, open an option chain and trade directly from there. You can also refer to pay-off graphs and charts to choose the best trade.

2. Screening Ability

Manually monitoring stock market data and analysing them can be a challenge. Mobile app for option trading provides a smart screener that can arrange underlying assets on parameters such as price gainers, price losers, OI gainers, OI losers and volume gainers. Thus, helping you find the best asset for derivative trading.

3. Market Outlook

Understanding the market outlook is essential for making a profit while trading options. Trading apps offer the ability to understand whether the market is bullish, bearish or neutral. This, in turn, helps you find short-term trade ideas depending on the market outlook.

4. Live Market Scan

For securing profitable deals while futures and options trading, it is imperative to have the latest price information on assets. Mobile trading apps provide a constantly updating list of stocks complete with the latest price and breakout information of all F&O securities. 

5. Pre-Built Strategies

Did you know that you can trade options instantly using pre-built strategies through a trading app?  Options trading strategy allows you to increase your chances of profit. You can save time by executing your trades smartly with option strategies available on apps such as bull call, long straddle, short straddle, etc. 

Conclusion

Mobile app for option trading significantly reduces the time and effort involved in trading this derivative. It brings live and detailed market information at your convenience at any time. Access to a screener, live scan, market outlook & pre-built trading strategy on trading apps like Dhan to make your F&O trading journey incredibly efficient.