Open Futures & Options Trading Account

What is a derivatives trading account?

Derivatives trading (Futures & Options) involves buying or selling derivative products. The idea is to hedge portfolio risks and make substantial gains from price volatility by paying nominal margins. They are called derivatives because they derive their value from underlying assets like equity, bonds, currency or commodities. To trade in derivatives, you will need an F&O account.

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  • Why do you need a derivative (Futures & Options) trading account?
    • You cannot directly trade in derivatives without opening a derivatives account with a listed brokerage. Seasoned brokerage houses like Angel One, are trading and clearing members of NSE f&o segment, and BSE derivatives segment. These members provide a gateway to the exciting world of derivative market. Currently, your equity trading account doubles up as a futures (and options) trading account.
    • When there is significant exposure in the underlying asset class, you need derivatives trading account to hedge against market volatility.
    • Given that the margins are nominal, you can afford to take calculated risks in futures trading with the help of a derivatives trading account.
    • Trading in derivatives allows one to hold the position for longer (as long as three months).
    • A derivatives trading account from Angel One comes with these benefits:
      • Pan India Presence: You can trade from anywhere; geography is not a barrier anymore to open an options and futures trading account.
      • Easy Access: You can access your account online as well as offline.
      • Regular Updates: You can get alerts like new schemes and offers. Angel One also sends curated tips based on your trading pattern.
      • In-Depth Research: Not just executing the trades, but the brokerage also provides the right tools to pick the right product.
        • These tools are based on your financial requirement, along with related in-depth market research and analyst inputs.
      • 24/7 Customer Support: Angel One’s dedicated customer help desk along with a web-enabled 24/7 backend to help you navigate the world of derivatives trading.
      • Seamless Processes: A derivatives trading account with Angel One takes very little time to open. Moreover, with the help of online access and smart technology, investors need not maintain paper receipts for trade transactions.
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To begin an F&O account, you’ll have to submit a ‘Client Registration Form’ along with other SEBI mandated documents. As you may already know, SEBI is the regulator for the securities market in India. Documents include an account opening form and relevant Know Your Client (KYC) verification proofs.


STEP - 1

Account Opening Form.


STEP - 2

ID proof:Account Opening Form.
PAN card/Voter's ID/Passport/Driving license/Aadhaar card.


STEP - 3

Address proof can be any one of these:
Telephone bill/Electricity bill/Bank statement/Ration card/ Passport/Voter's ID/Registered lease or sale agreement/Driving license.


STEP - 4

Financial proof:
Apart from a bank statement, you can provide any of the following: (Copy of ITR Acknowledgement , Annual Accounts, Form 16 in case of salary income, Net worth certificate, Salary Slip, Demat account Holding statement)
Your verification process will take place through a phone call or an in-house visit. After this, your F&O account is set up, and you’ll receive your account details.

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How can one check the account opening status?

can check your account opening status by logging into Angel One website. Follow these steps:

  • •Go to: https://www.angelone.in
  • • Go to the Home Page
  • • Click on Track A/C Opening Status
  • • Enter the pan card details in the given column

How to trade after opening a derivative trading account?

You can trade using our online or mobile platform. You can even transact offline by calling our tele-broking services.

What is an options and futures contract?

Though both futures and options are derivatives of underlying asset classes, they’re different. The primary one being, an option is a right (and NOT an obligation) to buy or sell an underlying asset, at pre-determined prices. A futures contract, on the other hand, is an obligation on the part of buyers and sellers to execute the trade at pre-decided prices on the date mutually agreed.

Example of futures trading

For instance, you buy one-month equity contracts of ABC Company with your futures account at Rs.400 per share. On the contract expiry date, if the share price goes up to Rs. 450, you end up making a decent profit.

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