Frequently Asked Questions
Stock Options
What are some of the common reasons for order rejection?
- Insufficient buying power: The Buy open gross amount should be higher than the available balance.
- Not allowed to sell Naked positions: Sell to Open positions will be rejected if not covered by the underlying stock i.e. Covered Call.
- Order mismarked: Closing and Opening of positions have to be done separately.
E.g. Long 1 AAPL Call position with 100 AAPL shares in account
Incorrect placement: Sell 2 AAPL Call – to close 1 Long Call and open 1 Covered Call positions
Correct placement: Sell 1 AAPL Call – to close 1 Long Call position Sell 1 AAPL Call – to open 1 Covered Call position
Other faq that might help you
- How are options classified?
- How do I make sense of an option symbol?
- What are the moneyness of options?
- What are the Greeks in option trading?
- What are the risks involved in trading options?
- What happens after I’ve entered into an options position?
- Are there any forms required prior to trading Options?
- What are the eligible account types to trade Options?
- How long is the approval process for Option Activation?
- How do I read the Option Portfolio balance?
- Why are Exercise/Assignment activities not shown on the same day of the e-statements?
- How do I transfer funds into my Options Account? (Video Guide)
- How do I transfer funds into my Options Account?
- How do I transfer stocks into my Options Account? (Video Guide)
- How do I transfer stocks into my Options Account?
- Why is there a need to transfer funds/stocks prior to trading options?
- Does POEMS support option strategies?
- What are the supported platforms?
- Is there US Pre-market Trading for options?
- What are the tradable counters available for options?
- What happens if the underlying share is delisted onto OTC?
- Glossary
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