{"id":30481,"date":"2013-08-21T14:09:45","date_gmt":"2013-08-21T18:09:45","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=30481"},"modified":"2023-04-24T10:45:04","modified_gmt":"2023-04-24T14:45:04","slug":"how-to-choose-an-options-trading-platform","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/how-to-choose-an-options-trading-platform","title":{"rendered":"How to Choose an Options Trading Platform"},"content":{"rendered":"

A key consideration in finding the right options broker for you is knowing which features of the broker\u2019s trading platform are important to your options trading strategies. There are some very different approaches to delivering charts and quotes.\u00a0 So some of the questions you should be asking when considering an options trading platform are as follows:<\/p>\n

1)\u00a0\u00a0\u00a0\u00a0\u00a0 What options for trading does the broker offer?<\/p>\n

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  1. Is the platform Web-based?<\/li>\n
  2. Is the platform alternatively software-based (i.e., installed on your PC) \u2013 if so, does the broker have a Mac version?<\/li>\n
  3. Is the platform available as a tablet and\/or smart phone app?<\/li>\n<\/ol>\n

    2)\u00a0\u00a0\u00a0\u00a0\u00a0 What tools are included with the platform?<\/p>\n

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    1. Charting and studies<\/li>\n
    2. Option chains and Greeks<\/li>\n
    3. Portfolio tracking<\/li>\n
    4. Risk graphs for positions and adjustment<\/li>\n
    5. News feeds<\/li>\n
    6. A strong help system and an excellent reputation for customer service.<\/li>\n<\/ol>\n

      3)\u00a0\u00a0\u00a0\u00a0\u00a0 How easy is the platform to use?<\/p>\n

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      1. Is it easy to navigate from screen to screen?<\/li>\n
      2. Does it provide the convenience of structuring\u00a0 trades from single option purchases to multi-legged strategies like condors and butterflies<\/li>\n
      3. Are open positions managed easily?<\/li>\n<\/ol>\n

        As you get deeper into advanced options trading strategies you will want to know how to use your broker\u2019s platform like the back of your hand. When you start to initiate straddles, strangles and spread trades you want the actual execution of the trade to be flawless.<\/p>\n

        Candidly, one of the criterions that you should consider is discovering the platform that your other trading colleagues and friends are using\u2014the learning curve is greatly improved if someone friendly can show you the ropes.\u00a0 We also suggest starting with a demo account to familiarize yourself with the platform.<\/p>\n

        Here\u2019s an interesting fact that very few traders know:\u00a0 You can do it the hard way by approaching each broker and setting up a demo account with each platform or you can go to the CBOE website, register once, and gain access to three broker platforms at once.<\/p>\n

        Navigate your way to\u00a0 http:\/\/www.cboe.com\/learncenter\/default.aspx<\/a> and register an account. Once you do that you have access to their \u201ctools\u201d tab. Under the tab you will see:<\/p>\n