Frequently Asked Questions (FAQ)

The minimum deposit varies by broker (€0 to €2,000). However, for meaningful diversification, you should plan for at least €5,000-10,000. Keep in mind that one option contract typically covers 100 shares.

Options are complex financial instruments with significant risks. Beginners should first educate themselves thoroughly, practice with a demo account, and start with simple strategies (e.g., covered calls). Education is essential.

European options can only be exercised on the expiration date. American options can be exercised at any time until expiration. Most stock options are American, index options are often European.

No. You can close option positions at any time before expiration through an offsetting transaction. Most traders close positions early to realize profits or limit losses.

The option premium consists of: Intrinsic value (difference between stock price and strike) + Time value (influenced by remaining time, volatility, interest rates, and dividends). The Black-Scholes model is the best-known valuation model.

If you sold an uncovered (naked) option and it's exercised, you must buy the shares at market price (for calls) or sell them (for puts). This can lead to significant losses. Therefore, margin requirements for uncovered options are high.