Since this is a basic introduction to options trading, we will be focusing on executing simple orders that just involve buying options.
From the options chain screen, you will have selected the option you wish to purchase by clicking on the options symbol. A separate order entry screen will be displayed and here, you have several things to specify to complete your order.
After confirming the underlying security, expiration month and the strike price, the first thing you need to specify is the quantity. For options, this is the number of contracts you wish to buy. Remember, for stock options, each contract covers 100 shares. Commissions are charged for every contract but many brokerages offer discounts for larger orders. Sometimes, depending on your broker, there is also a mimimum commission charge for every order.
This option is available for limit orders. If you select this option, your broker will try to fill all of the quantity you specified. If he is unable to do that, then none of your orders will be filled.
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