Options trading can be intricate a lot more so than stock trading. When you purchase a stock, you just decide the number of shares you want, and your broker fills the order at the prevailing market value or a limit rate you set. Trading alternatives needs an understanding of sophisticated methods, and the procedure for opening a choices trading account consists of a couple of more actions than opening a typical financial investment account.( Need to review puts, calls, strike rates and other alternatives trading lingo? See our post on alternatives trading 101). Compared to opening a brokerage represent stock trading, opening an alternatives trading account requires bigger quantities of capital. And, offered the intricacy of predicting multiple moving parts, brokers require to know a bit more about a prospective investor prior to granting them an approval slip to begin trading choices.