An option is a financial derivative that represents a contract between two parties for a future transaction on an underlying asset at a predetermined price. Options come in two primary forms: call options and put options. They provide investors with the flexibility to profit from price movements in the underlying asset without owning the asset itself.

As an options trader, you can expect to learn about various strategies and techniques for trading options. This includes understanding how to select the right options to trade based on market conditions, determining the optimal time to enter and exit trades, and monitoring your trades to make necessary adjustments. Continuous education, practice, and risk management are key to success in options trading.

When choosing a broker for option trading, it's essential to consider both the features they provide and the associated costs. Look for a broker that offers a user-friendly trading platform, comprehensive research tools, and excellent customer support. Additionally, compare the commission fees and account minimums across different brokers. Some may offer lower trading fees but might lack advanced tools or support. It's crucial to find a balance that suits your trading style and experience level.

While you can start trading options with as little as $5,000, it's generally recommended to have at least $25,000 in your trading account. This higher amount helps you avoid the pattern day trading rules that apply to accounts with less than $25,000. These rules can limit your trading flexibility, so having a larger capital base allows for more freedom and opportunities in the market.

You must be a minimum of 18 years old to open an options trading account. This is the legal age to enter into a binding contract in most jurisdictions, and it applies to opening a brokerage account and engaging in trading activities.