All Zerodha users can now trade options on Sensibull for free

Options trading on the Sensibull platform will be completely free for all Zerodha users from Monday, July 24, 2023. For trading, users have to pay the normal charges that they pay Zerodha -- Rs 20 per order -- whether they trade from Kite, or directly from Sensibull

 Under the deal, Zerodha will be paying for this Sensibull facility and users will not be charged anything for this.

Why now?

"Sensibull was started with the vision of making retail investors profitable. But there are thousands of smaller traders who cannot afford to pay for Sensibull. They are also the ones who need help the most. If we keep Sensibull out of reach for people without the means to pay, we will never do justice to our vision of making small investors profitable.  We wanted everyone to get access to a better way to trade options," said Abid Hassan,   CEO and co-founder of Sensibull.

Is this free forever?

Yes

Are there any other charges at all?

No, there are no charges at all for using Sensibull for Zerodha users. For trading, you have to pay the normal charges that you pay Zerodha – Rs.20 per order – whether you trade from Kite, or directly from Sensibull. Long story short, no extra charges for using Sensibull.

What is Options Trading? 

According to brokerage Angel One, an ‘option’ is a contract that permits (but doesn’t necessitate) an investor to purchase or trade instruments like securities, ETFs or index funds at a pre-decided rate after a specified period. Selling and purchasing options are carried out in the options market. An option that permits you to acquire shares sometime in the future is referred to as a “call option.” On the other hand, an option that enables you to sell shares sometime in the future is a “put option.”

When an investor or trader buys or sells options, they have the right to apply that option at any point before the date of expiration. Simply purchasing or selling an option doesn’t require one to actually exercise it at the expiration point. Due to this structure, options are considered ‘derivative securities’. In other words, the price is options is derived from other things like the value of assets, securities, and other underlying instruments).