Frequently Asked Questions
Why are options considered riskier than other investments?
Options are considered riskier than other investments due to
their derivative nature and heightened price
volatility. As leveraged instruments, even a small investment in
options can lead to a substantial gain or loss,
exceeding the risk associated with traditional investments.
How much does it cost to trade options?
Your options trading is always commission-free with Alpaca's Trading API.
Note: this is only available to our retail customers.
To understand what may be considered non-retail trading activities,
read here.
What options are supported?
Currently, all exchange-listed US equity options (American
style) are offered. However, index options are
not supported but will be coming in the future.
Is market data for options offered?
Our Trading API supports market data for options in real time.
What options strategies are available with Alpaca?
We've launched options trading for Level 1 & 2 strategies:
long calls, long puts, covered calls, and cash-secured puts.
However, expect to see more complex and multi-leg strategies (including spreads) available in the near future.
