How to Use Neostox for Options Trading (Virtual Trading Only)

Neostox is one of the most systematic virtual trading platforms in India. You can use it to trade popular instruments like stocks, options, and futures in the Indian stock market.

Keep in mind that it is not a real trading platform like Zerodha, Upstox, or Groww App. It is only a paper trading platform that is designed to help you practice trading with virtual capital, and you can learn more about it from my complete Neostox hands-on review here.

Try Out Paper Trading on Neostox Here

So if you really want to know how to use Neostox for options trading in the paper trading mode, stay tuned and keep reading. Below, I have a complete guide on how to do options trading on Neostox without losing your real money.

But I can’t guarantee any improvement in your emotional and psychological states via paper trading. Yes, I believe that in order to shake up your emotional and egoistic buildups, you need to seriously lose some money, i.e., the real money that you can use to fill the fuel in your bike.

How to Use Neostox for Options Trading?

Options trading is a very popular trading instrument among intraday traders in India.

It is mainly because of two reasons: higher profit margins and increased liquidity.

But, as you might be aware, options trading, especially naked buying or selling, is highly risky, so you can use Neostox or any other reliable paper trading platforms to continuously test your trading strategies and setups in the real-time market with no loss of real money.

Neostox features a very attractive and responsive options trading facility.

You can both sell and buy options on its terminal and more interestingly, its premium plans give you access to several pre-built options strategies.

You can also put to test your own customized strategies or hedged positions on Neostox, thanks to its basket order feature, which is not available in the basic plan.

How Options Trading on Neostox Works?

It is simple and as easy as that. It works exactly as your real-market trading terminal does.

After logging in, you can just enter the strike name in the search bar. You get all the related strikes as dropdowns, where you can find your choice and place an order. That is all.

See the screenshot below to get a clear picture at a glance.

That has been all about naked buying and selling.

For placing hedged positions as well as executing pre-designed strategies for risk management, you can do that in two ways: basket orders or the included pre-built strategy window.

For a basket order, you can just select ‘Baskets’ in the top menu, create a basket, name it, and add the strikes to it. You can also set stop loss and target before placing the order.

Rather easier is to place your orders with the pre-designed strategies on Neostox.

For that, just open ‘Pre-Built Strategies’, and choose the index, expiry date, and market sentiment, whether bearish, bullish, or sideways, to get the system to pull out all the right strategies that match your selection.

Here, the job is easier. Just choose the right strategy for the time and verify the details, like profit and loss, total capital, and breakeven points, and place the order for a minimally risky trade. See a sample Iron Condor trade below.

Is Paper Trading Useful in Options Trading?

My short answer is ‘yes’; it is really useful for all beginners.

Options trading is highly risky, as you know. Even if you learn the basics of trading from either self-learning or professional training, I strongly recommend you try it first in paper trading to test your strategies and setups before putting your hard-earned money in the real market.

Try Out Paper Trading on Neostox Here

It is a fact that your emotions are not engaged in paper trading. But that alone is not going to be a reason to stay away from the practice, at least for a few months of the initial period in your trading journey.

I have seen many people defer to paper trading for that reason before starting real trading. Many of them have lost a lot of money by failing to clearly manage key trading practices like position sizing, risk-reward, and stop-loss management.

If you are into paper trading in options trading, whether buy or sell, you can test all those things in your own way and get a clear idea of doing things healthfully and fruitfully before trying your luck in the real market.

Forget about the deficiency of emotional stuff in your trading and enjoy paper trading as much as possible before putting your money into the system to make sure you are a safe trader.