Virtual option and stock trader
Options are a leveraged investment and aren't suitable for every investor. Options involve risk, including the possibility that you could lose more money than you invest.
A copy of this booklet is available at theocc. The booklet contains information on options issued by OCC. It's intended for educational purposes. No statement in the booklet should be construed as a recommendation to buy or sell a security or to provide investment advice. The OIC can provide you with balanced options education and tools to assist you with your options questions and trading.
Your use of this site signifies that you accept our terms and conditions of use Open a new browser window. Skip to main content. Search the site or get a quote. Understanding options trading Options are a complex investment and are not suitable for every investor. Keep these points in mind when trading options: Consider whether options fit with your investment goals, risk tolerance, and objectives.
You could see significant gains—or lose your entire investment—in a relatively short time. You should consult a professional tax advisor to discuss how options strategies may impact your tax situation. Submit your application Complete and submit a Brokerage Option Application, one for each brokerage account that you intend to use for options trading. Complete an option application.
Open a brokerage account. Getting approval In reviewing your application, we'll consider your account type and the information you provide about your finances, trading experience, and investment objective. You'll receive notice of your approval or denial by mail. We have four levels of options approval: Purchase calls and puts. Trade equity and index spreads.
Includes Levels 1 and 2. Thankfully, the web makes it easy to practice with virtual money. There are a multitude of online investment games like Investopedia and gnuTrade that play with virtual money, but not all of them are easy for beginners. Here are five of the best free because you shouldn't have to spend real money to play with fake money online games for getting your feet wet.
A friendly cartoon version of stock guru Mark Brookshire helps you make your final decision by providing some rating numbers when you input a stock. These include a rating for survivor sentiment, fundamentals, technical and a Motley Fool Rating. For additional help choosing stocks, the site has an impressive resource library that spans beginner, intermediate and advanced levels. Start with Investing and consider taking advantage of the community forums if you have specific questions.
Those who need a little help getting started can also choose to adapt one of the preset portfolios created by proven traders. Prizes vary, but most often consist of competitive pride. Owned by the same company as Wall Street Survivor , this game is great for investors looking to gain experience with a new type of portfolio.
In addition to stocks and indexes, there are options to experiment with Forex portfolios, penny stocks, mutual funds and short selling. Beginners can execute market order-based trades in a "fun mode" without worrying about things like set hours, maximum number of trades per day, per stock and order expiration.
A "realistic mode" amps up the complexity after they've mastered the beginner level. Players can manage up to three stock portfolios and three Forex portfolios on the site at once. The competition aspect is optional. Other public contests include challenging restrictions like "short sells only" or "penny stocks only.
Young Money Magazine's stock exchange game is easy to learn but also fairly realistic, which is a hard balance to strike. Realistic aspects include a virtual commission that's taken out of each trade, adhering to market hours and rules about how you can invest. Unlike many investing games, trades are made at a real-time price.
Learning aspects include convenient help icons on key terms and an intuitive tabbed interface. Players can also create their own contests or join other user-made contests. MarketWatch will run this mock stock market contest for a total of four weeks, awarding the winner of each week with an iPad.