How to Make Contracts on Robinhood

If you`re new to investing or just getting started with Robinhood, you may be wondering how to make contracts on the platform. Robinhood offers a variety of investment vehicles, including options trading, which allows traders to make contracts with other traders to buy or sell a specific security at a certain price.

Here`s how to make contracts on Robinhood:

1. Open an options account: Before you can start trading options on Robinhood, you need to open an options account. To do this, sign in to your Robinhood account and navigate to the Account tab. From there, select Options Trading and follow the prompts to apply for an options account.

2. Choose a security: Once you have an options account, you can search for the security you want to trade options on. Robinhood offers options trading on a variety of securities, including stocks, ETFs, and cryptocurrencies. When you find the security you want to trade options on, select Trade Options.

3. Choose a contract: When you`ve selected the security you want to trade options on, you`ll see a list of available contracts. You can choose a call option if you think the price of the security will go up, or a put option if you think the price will go down. Select the contract you want to trade and enter the number of contracts you want to buy or sell.

4. Set the price: After selecting your contract, you can set the price you`re willing to buy or sell it for. If you`re buying a call option, you`ll enter the maximum price you`re willing to pay. If you`re selling a call or put option, you`ll enter the minimum price you`re willing to sell for. Robinhood will show you the current bid and ask prices, so you can set your price accordingly.

5. Place the order: When you`re ready, review your order and click Place Order. Robinhood will execute the trade on your behalf and notify you when it`s been filled.

Making contracts on Robinhood can be a profitable way to invest in the market, but it`s important to note that options trading can be risky and you should only invest what you can afford to lose. It`s also important to do your research and understand the terms and risks associated with options trading before getting started. With the right strategy and a little bit of luck, you can make contracts on Robinhood and potentially earn a profit.