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Homeowners with a mortgage typically make monthly payments toward the loan principal and interest. But borrowers can choose to make biweekly mortgage payments instead, resulting in 13 full payments over a one-year period.

Opting for this mortgage payment strategy may come with advantages and drawbacks, including impacts on your savings and reducing the interest you pay over the life of the loan. Here’s what to know about the potential pros and cons of making mortgage payments biweekly.

Understanding Biweekly Mortgage Payments

So how do biweekly mortgage payments work in practice? A biweekly mortgage payment involves a borrower paying half of their monthly payment every two weeks rather than in full each month.

With 52 weeks in a year, these 26 biweekly payments amount to an extra month’s payment every year. Over the course of a 30-year mortgage term, this can help whittle down your mortgage principal — the amount you borrowed to buy your home — and speed up your mortgage repayment by several years.

Before you start making extra or biweekly payments, it’s a good idea to check to make sure you won’t encounter a prepayment penalty for paying off the mortgage before the end of the loan term.

Recommended: Mortgage Repayment Calculator

Pros of Biweekly Mortgage Payments

If you’re looking to pay off your mortgage early, paying the mortgage biweekly could be beneficial. Below are some advantages of paying your mortgage biweekly.

•   Save thousands in interest payments over the life of the loan by reducing the accumulation of interest on your mortgage.

•   Build home equity faster by making additional payments toward the loan principal.

•   If you have private mortgage insurance (PMI), reach 20% equity in your home sooner to cancel PMI and lower your mortgage payment.

•   Pay off your mortgage several years in advance, freeing up finances for other financial goals, such as retirement.

Cons of Biweekly Mortgage Payments

Paying off your mortgage early has a lot of appeal, but it’s important to consider the potential disadvantages of biweekly mortgage payments.

Here are some drawbacks of this mortgage repayment strategy to keep in mind.

•   Potential risk of facing prepayment penalties if you pay your mortgage off early, depending on the terms of the loan agreement.

•   Lenders may charge a fee for setting up biweekly mortgage payments to recoup lost interest from paying off the mortgage early.

•   Committing to a biweekly payment plan consumes more of your budget, which can impact your ability to manage the other costs of owning a home and your financial goals.

Recommended: Home Equity Line of Credit

How to Calculate Potential Savings

How much could you save by making mortgage payments biweekly? Here’s an example of how to crunch the numbers and determine how much you could save.

Let’s say you make a 20% down payment on a home and have a $240,000 mortgage principal with a 6.50% interest rate and 30-year loan term. This amounts to a monthly payment of around $1,516, not accounting for property taxes and home insurance. As a biweekly mortgage payment, you’d pay $758.

Every year, this means putting an extra $1,516 toward the mortgage principal on top of your monthly mortgage payments. Here’s how a biweekly vs. monthly mortgage payment breaks down in terms of loan term and potential savings, assuming you begin making biweekly payments from the outset of the loan.

With monthly mortgage payments:

•   Monthly payment: $1,516

•   Total annual payment: $18,912

•   Loan term: 30 years

•   Total interest paid: $306,106

With biweekly mortgage payments:

•   Biweekly payment: $758

•   Total annual payment: $19,708

•   Loan term: 24 years

•   Total interest paid: $235,609

By setting up biweekly payments from the start, you’d pay off the mortgage six years early and save $70,497 in interest. Even if you have fewer years left on your mortgage, there’s still potential for significant savings on the mortgage interest. (You can use a mortgage calculator to see how much interest you pay over the life of your mortgage.)

Who Benefits Most from Biweekly Payments?

Getting out of debt and paying off a mortgage sooner could be advantageous for any homeowner, but there are some scenarios when it might make more financial sense.

Borrowers with high interest rates on their mortgage could benefit from making biweekly mortgage payments. Putting an extra monthly payment toward the loan principal each year helps diminish how much interest accrues on the mortgage, adding up to considerable savings.

However, it’s important to take a comprehensive look at your finances to determine where extra payments on debt could be the most effective. If you have a personal loan or credit card debt with a higher interest rate than your mortgage rate, you could save more by tackling these high-interest debts first before setting up biweekly mortgage payments.

Since this approach essentially adds an additional monthly payment each year, it’s worth reevaluating your household budget to ensure you can cover the cost without impacting other financial goals. From a budgeting standpoint, making biweekly mortgage payments could be easier for those who have steady income and receive a paycheck every two weeks.

Implementing Biweekly Payments

There are some steps to follow and key considerations when setting up biweekly mortgage payments.

First, reach out to your lender to see if it allows biweekly payments and if you’ll be liable for prepayment penalties. (Fortunately, prepayment penalties are typically limited to instances where a borrower pays off the mortgage within five years or less.)

It’s also worth asking how the lender will apply extra payments if you set up biweekly payments. Specifically, confirm that the extra funds are applied to the mortgage principal rather than interest or your escrow. Note that having the half monthly payment applied right away can lead to more savings than if the lender waits until the second half is received.

Alternatives to Biweekly Mortgage Payments

Biweekly mortgage payments might not work for everyone. If you’re not ready to commit to paying your mortgage biweekly, there are some alternative options that could help save money on mortgage loans.

•   Increase your monthly payment: Round up monthly payments to the nearest hundred dollar amount (e.g., paying $1,600 instead of $1,516) to put more money toward the mortgage principal.

•   Make a lump-sum payment: Apply a tax refund, extra savings, or bonus as a one-off payment toward the principal when it makes sense for your budget.

•   Mortgage refinance: Reduce your mortgage term from 30 years to 15 years to save on interest, though this will result in a larger monthly payment.

The Takeaway

Paying off your mortgage early with biweekly payments could save you thousands in interest and shorten your mortgage term by several years. But first, it’s worth paying off other high-interest debt and checking how your lender applies extra payments before committing to this payoff strategy.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

FAQ

Can I switch to biweekly payments on an existing mortgage?

You may be able to switch an existing mortgage to biweekly payments, but you’ll need to check with your lender first. Otherwise, making payments every two weeks may not get applied to the mortgage principal as intended.

Will biweekly payments affect my taxes or escrow?

Biweekly payments do not affect your taxes, but it’s a good idea to verify that the appropriate amount is going to escrow from each mortgage payment.

What if I can’t make a biweekly payment occasionally?

Missing a biweekly payment or any mortgage payment could involve late fees and harm your credit score. To avoid these risks, reach out to your lender as soon as possible to discuss options.

Photo credit: iStock/anchiy

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOHL-Q125-060

Homeowners have multiple options to save money on mortgage interest. A mortgage offset account can reduce the home loan balance that borrowers pay interest on. The amount of the loan that is “offset” depends on the type of offset account and the total funds set aside in the account.

Here’s what you need to know about this mortgage savings strategy. We’ll cover what are offset accounts, and how offset accounts work with your home loan. You’ll also learn the benefits of using an offset account, and get wise to what to consider before opening an offset home loan account. (Note: Offset accounts are uncommon in the U.S., and SoFi does not offer this account option. These accounts are more common in the United Kingdom and Australia.)

Types of Offset Accounts for Home Loans

A mortgage offset account is like a normal savings account, but the funds that you keep in it are used to “offset” what you owe on your home loan. So the balance in your offset account is subtracted from your outstanding home loan balance when the interest you owe on your loan is calculated. You can add funds to an offset account and withdraw them when needed — so, for example, an offset account could be a good place to park your rainy-day savings.

How the lender applies the offset account against the mortgage depends on the type of offset account. Options can vary by lender, but there are two main types of offset accounts: full and partial.

Full Offset Accounts

As its name suggests, a full offset account applies the entire balance in the account against the mortgage balance. (Unsure how your mortgage balance is computed? Read up on the mortgage basics.)

For example, a borrower with a $350,000 mortgage and $30,000 in a full offset account would only pay mortgage interest on $320,000. In other words, you pay interest on the difference between the two account totals. This can add up to considerable savings over the life of the home loan.

Partial Offset Accounts

Meanwhile, money in a partial offset account does not provide a one-for-one offset against an outstanding mortgage, Instead, the mortgage balance is offset by a set portion of the funds in the account, such as 50%.

Using the same example of a $350,000 mortgage, the borrower would pay interest on $335,000 if the partial offset account was set at 50%.

Recommended: What Is a Good Mortgage Interest Rate Right Now?

How Offset Accounts Work with Your Home Loan

So, what is a mortgage offset account in practice and how does it work?

An offset account is linked to a mortgage — usually under the same lender. It functions like a checking account or savings account in that you can withdraw funds from an ATM and typically pay for transactions using a debit card that is linked to the account. However, these accounts typically don’t earn interest like a high-yield savings account.

As the balance in the mortgage offset account fluctuates from month to month, so does the amount of interest charged on the remaining mortgage principal — the amount you initially borrowed. This can translate to differences in the total mortgage payment due each month. To see how much you might save in interest, you can plug different mortgage principal amounts into a mortgage calculator.

Generally, you can add and withdraw funds from an offset account as desired, meaning this money can be used for other financial goals like saving for a vacation or a new car purchase. Borrowers might consider setting up a direct deposit to their offset account to maintain a higher balance.

Benefits of Using an Offset Account for Your Mortgage

Using a mortgage offset account can deliver a number of benefits for borrowers. Here’s a closer look at some of the key advantages.

Interest Savings on Your Home Loan

The money in an offset account effectively lowers the mortgage balance, meaning you pay less in interest. This is true for each monthly payment, as well as over the life of the mortgage.

Say you have a $300,000 fixed-rate mortgage with a 30-year term and 6.00% interest rate. By making monthly payments in full without additional payments to pay off your mortgage early, you’d be charged approximately $347,515 in interest.

In this same scenario, starting with a full offset account with a $1,000 balance that you add $250 to monthly could shorten the loan term by five years and one month. Increasing monthly contributions to $500 would shave 7.5 years off the mortgage term.

Flexible Access to Funds

Another benefit of an offset account is that your money can be used for other purposes as needed.

This gives the borrowers plenty of flexibility to use this money for other financial goals. For example, it could serve as an emergency fund to be prepared for unexpected costs. Additionally, other long-term savings goals can be managed in an offset account to maximize mortgage interest savings.

Recommended: First-Time Homebuyer Guide

Potential Tax Efficiency

Homeowners can deduct interest payments on home loan products, such as FHA loans and HELOCs (home equity lines of credit). While an offset account reduces the amount of interest paid on a mortgage, this reduced interest is still tax deductible.

Generally, offset accounts do not earn interest like a savings account, which is considered taxable income. Furthermore, the interest savings on your mortgage from an offset account are not taxable. Thus, an offset home loan account can offer savings without increasing a borrower’s tax liability.

Considerations Before Opening an Offset Account for a Home Loan

Offset accounts vary by lender and there are some potential tradeoffs to factor into your decision-making before moving forward, especially because offset accounts aren’t the only way to reduce the interest you pay (you could, for example, consider a mortgage refinance). Below are a few things to keep in mind when considering an offset account.

Fees and Charges

It’s possible that an offset account may carry fees for withdrawing funds, which could diminish the value if you intend to use the money in your offset account for other purposes. In any case, it’s important to fully understand the lender’s terms and conditions to weigh the potential savings vs. added costs.

Minimum Balance Requirements

When you open an offset account, you may be required to maintain a minimum balance. While the intent of an offset account is to increasingly add funds to reduce interest payments, it’s worth noting if a lender requires this and whether the minimum balance could be an issue.

Eligibility for Offset Accounts with Home Loans

You may need to make a higher down payment of 20% or more to get an offset mortgage account. Meanwhile, conventional mortgage loans may require as little as 3-5% toward a down payment, with the lowest down payment amounts allowed for eligible first-time buyers. And as noted above, it can be difficult to find a lender that offers offset accounts for home loans.

The Takeaway

An offset account can help borrowers reduce the interest paid on their mortgage while keeping funds accessible for other financial goals. If a lender offers offset accounts, thoroughly explore what is an offset account with the lender, and take note of any fees and minimum balance requirements to determine whether you can expect to save money by using one.
Otherwise, consider other ways to lower the interest rate on your home loan, perhaps including a refinance or even paying off your mortgage early.

FAQ

What is the primary purpose of an offset account for home loans?

An offset account for home loans is meant to reduce interest on a home loan and pay off the loan sooner. They usually can be used for making other transactions, too, similar to a checking account.

Can I access the funds in my offset account while paying my mortgage?

Borrowers can typically access the money in an offset account, assuming they maintain the minimum balance requirement, if applicable. Note that withdrawing funds can reduce how much you might save in interest.

Are there tax benefits to using an offset account with a home loan?

An offset account usually doesn’t accrue interest, meaning it doesn’t create any taxable income. The amount you might save in interest is also not considered taxable.

Do all home loans qualify for an offset account?

Not every home loan qualifies for an offset account. It’s essential to check with your lender to determine your options.

Are there any drawbacks to using an offset account for a mortgage?

Potential drawbacks to using an offset account for a mortgage include account fees, transaction charges, and minimum balance requirements. It’s also possible that you could achieve greater savings via other mortgage repayment strategies, such as biweekly payments.

Photo credit: iStock/nortonrsx

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

SOHL-Q125-058

If you have experience trading options in the stock market, you may also be aware of trading options in the forex world. Forex (short for foreign exchange) is a trading market that is separate from the stock market, and is where traders buy and sell different foreign currencies.

Two parties might exchange currency if one is traveling in a different country, or represents a multinational company. Many people also trade foreign currency as an investment, just as traders do with the stock market.

Binary options, also known as digital options, are one way to trade in the foreign currency market. This all-or-nothing investment option can be attractive to some traders, but comes with significant risk. Below, we’ll explore how binary options work and why one might choose to trade them.

What Are Binary Options?

Binary options are a type of options contract with only two possible outcomes: a fixed payout or nothing at all. Traders choose an underlying asset (such as a currency pair, stock index, or commodity), set a strike price, and select an expiration timeframe.

In binary options, both the buyer and the seller put down their money upfront. These options are typically priced from 0 to 100, and the price represents the approximate probability that the given currency pair will be at or above the strike price when the option expires.

What Are Forex Binary Options?

Forex binary options focus specifically on currency pairs, such as USD/EUR. These contracts are similar to other binary options but involve predicting whether a currency pair’s exchange rate will be above or below a chosen strike price at expiration. These are considered exotic options because they have a non-traditional payout structure and only two possible outcomes: either a fixed profit or a total loss.

How Do Forex Binary Options Work?

Unlike traditional call and put options, forex binary options have two possible outcomes: if the price of the currency pair is at or above the strike price at expiration, you make money. If it is below, you lose your investment. Each contract typically settles at either $100 or $0, depending on whether it expires in or out of the money.

For example, if an option is priced at $40, then the buyer must pay $40 per contract and the seller must pay $60 ($100 minus the $40 price) upfront. When the option closes, whichever side is on the right side of the strike price collects the entire $100. The fact that there are only two possibilities leads to the name binary option.

Pros and Cons of Forex Binary Options Trading

Here are some of the pros and cons of trading binary options when forex trading:

Binary Option Risks and Rewards

Like all investments, investing in binary forex options comes with risks and rewards. These are different for the buyer and seller.

Risk for Buyers

Although there is risk in trading binary options, a trader knows the amount of money they’re risking upfront. With a binary option, you put down a specific amount of money (the option price). If the currency is below the strike price at expiration, you will lose all of the money you put down.

Reward for Buyers

The potential reward for a buyer purchasing a binary option is usually set at $100. If the currency is at or above the strike price at expiration, you will get the total amount of the contract.

Risk for Sellers

The risk for sellers of a binary forex option is known when the contract is agreed upon. Sellers of binary options must put their money down upfront, which is usually $100 minus the option price. If the option closes at or above the strike price, the option seller will lose all of the money they put down.

Reward for Sellers

If the currency closes below the strike price at expiration, the option will expire worthless and the seller will collect the entire $100. This could be a significant percentage gain, depending on how much was put down originally.

Binary Option in Forex Examples

Here are a few examples of how you could use a binary option in forex trading:

•   EUR/USD binary option for 1.15 closing in one hour, trading at $30. A buyer would need to put down $30 and the seller $70, per contract. If the price of Euros is at or above 1.15 dollars in one hour, the buyer will collect $100. Otherwise the seller will take $100.

•   AUS/JPY binary option for $83 closing next Friday, trading at $75. A buyer would put down $75 and the seller of this option would put down $25 per contract. If the price of the Australian dollar is at or above 83 yen, the buyer would take $100. If it is below 83 yen, the seller would collect the entire $100.

The Takeaway

Binary options are a way to invest in the foreign currency market. At its simplest, a binary option is a bet on the ratio of two different currencies. With a binary option, both options traders put down their money upfront. At expiration, whichever side is on the correct side of the strike price collects the entire premium put down (usually $100 per contract).

Binary options can be incredibly risky because you must predict whether the price will be at or above the strike price at expiration, and within the specified timeframe.

Investors who are ready to try their hand at options trading despite the risks involved, might consider checking out SoFi’s options trading platform offered through SoFi Securities, LLC. The platform’s user-friendly design allows investors to buy put and call options through the mobile app or web platform, and get important metrics like breakeven percentage, maximum profit/loss, and more with the click of a button.

Plus, SoFi offers educational resources — including a step-by-step in-app guide — to help you learn more about options trading. Trading options involves high-risk strategies, and should be undertaken by experienced investors. Currently, investors can not sell options on SoFi Active Invest®.

FAQ

Are forex and binary options the same thing?

The two terms are similar in that they both refer to trading on the foreign currency markets, but they are slightly different. Forex usually refers to buying and selling the actual currency itself, while binary options allow you to invest in forex for a smaller budget with more leverage.

Are binary options better than forex?

Binary options are a form of speculative SoFi Invest®

SOIN-Q125-104

An options spread involves buying and selling different options contracts for the same underlying asset, at the same time. In the world of vertical spreads, there are credit spreads and debit spreads. What is the difference between a credit vs. a debit spread, and what are the potential ways investors may use these strategies?

When an investor chooses a credit spread, or net credit spread, they simultaneously sell a higher premium option and buy a lower premium option, typically of the same security but at a different strike price. This results in a credit to their account.

A debit spread differs from a credit spread in that the investor purchases a higher premium option while selling a lower premium option of the same underlying security, resulting in a net payment or debit from their account.

Keep reading to learn more about the differences between credit spreads and debit spreads, and how volatility may impact each.

Why Use a Spread Strategy When Trading Options?

Options contracts give their holder (or buyer) the right, but not the obligation, to buy or sell an underlying asset, often a security like a stock. Having different strategies to trade options gives investors exposure to price movement in an underlying asset, allowing them to take a bullish or bearish position without having to own the security itself. Beyond the market price of the underlying asset, a number of factors — including the level of volatility, time to expiration, and market interest rates — impact the value of the options contract.

With so many factors to consider, investors have developed a host of strategies for how to trade options. A vertical spread comes in two flavors — a credit or a debit spread — which can involve buying (or selling) a call (or put), and simultaneously selling (or buying) another call (or put) at a different strike price, but with the same expiration. Let’s look at these two strategies for trading options.

How a Credit Spread Works

In a credit spread, the investor sells a high-premium option at one strike price and buys a low-premium option at a different strike price, both for the same underlying security and expiration date. Those trades result in a credit to the trader’s account, because the option they sell is worth more than the one they buy. In this scenario, the investor hopes that both options will be out-of-the-money on the expiration date and expire worthless, allowing the investor to keep the original net premium collected.

How a Debit Spread Works

In a debit spread, the investor buys a high-premium option and sells a low-premium option of the same security. Those trades result in a debit from the trader’s account. But they make the trade in the expectation that the price movement during the life of the options contract will result in a profit. The best case scenario is that both options are in-the-money on the day of expiration, allowing the investor to close out both contracts for their maximum potential gain.

Credit Spreads

To help with understanding how credit spreads works: An investor simultaneously buys and sells options on the same underlying security with the same expiration, but at different strike prices. The premium that the investor receives on the option they sell is higher than the premium they pay on the option they buy, which leads to a net return or credit for the investor.

Credit spreads often require traders to have a margin account, as the short leg (or short position) may create a financial obligation if exercised. Before a trader can engage in a credit spread, they’ll need to make sure their brokerage account is appropriately set up.

The strategy takes two forms. The first credit spread strategy is the bull put credit spread, in which the investor buys a put option at one strike price and sells a put option at a higher strike price. Put options tend to increase in value as the underlying asset price goes down, and they decrease in value as the underlying price goes up.

Thus, this is a bullish strategy, because the investor hopes for a price increase in the underlying such that both options expire worthless. If the price of the underlying asset is above the higher strike price put on expiration day, the investor achieves the maximum potential profit. On the flip side, if the underlying security falls below the long-put strike price, then the investor would suffer the maximum potential loss on the strategy. The maximum potential loss is equal to the difference between the two strike prices, minus the net premium received.

Another factor that can work in favor of the investor in credit spread is time decay. This is the phenomenon whereby options tend to lose value as they approach their expiration date. Holding the price of the underlying asset constant, the difference in value between the two options in a credit spread will naturally evaporate, meaning that the investor can either close out both contracts for a gain or let them expire worthless.

The other credit-spread trading strategy is called the bear call credit spread, or a bear call spread. In a way, it’s the opposite of the bull put spread. The investor buys a call option at one strike price and sells a call option at a lower strike price, hoping for a decrease in the price of the underlying asset.

A bull put spread can be profitable if the price of the security remains under a certain level throughout the duration of the options contracts. If the security is below the lower call’s strike price at expiration, then the spread seller gets to keep the entire premium on the options they sell in the strategy. But there’s a risk, too. If the stock falls below the lower strike price at expiration, the investor will face the maximum loss, which is the difference between the strike prices minus the net premium received.

Debit Spreads

A debit spread is the inverse of a credit spread. Like a credit spread, a debit spread involves buying two sets of options, in equal amounts, of the same underlying security with the same expiration date. But in a debit spread, the investor buys one set of options with a higher premium, while selling a set of options with a lower premium.

While the credit spread strategy results in a net credit to the trader’s account when they make the trade, a debit spread strategy results in an immediate net debit in their account, hence the name. The debit occurs because the premium paid on the options the investor purchases is higher than the premium the investor receives for the options they buy.

Investors typically use debit spread strategies to offset the cost of buying an option outright, or to speculate on moderate price movements in the underlying asset. They may choose a debit spread over purchasing a lone option if they expect moderate price movement in the underlying asset.

Like credit spreads, debit spreads can reflect bullish or bearish outlooks. For instance, a bull debit spread involves call options, where the investor purchases a call option at a lower strike price and sells a call option at a higher strike price. A bear debit spread involves puts, where the investor purchases and sells a put option at a lower strike price, aiming to profit from a decline in the underlying asset’s price.

The maximum potential gain is equal to the difference in strike prices minus the net premium paid up front, and is achieved if the underlying asset goes above the higher strike price call on expiration day. Similarly, one can construct a bear-debit spread using put options.

With debit spread strategies, the investor faces an initial outlay on their trade, which also represents their maximum potential loss. Unlike with credit spreads, time decay is typically working against the investor in a debit spread, since they are hoping for both options to expire in-the-money so that they can close out both contracts and pocket the difference.

Pros and Cons of Credit and Debit Spreads, Depending on Volatility

When comparing a credit spread vs. debit spread, here are a few key details to keep in mind.

The Takeaway

Spreads are commonly used options trading strategies, whether it’s a credit spread or a debit spread. The spread in these strategies refers to a practice of buying and selling of different options with the same underlying security and expiration date, but with different strike prices.

Key to the strategy is the fact that spreads create upper and lower bounds on potential gains and losses. It’s at the discretion of the investor to choose the strike prices of the options they buy and sell when creating the spread. This gives the investor a degree of flexibility with respect to how much risk they take on.

Investors who are ready to try their hand at options trading despite the risks involved, might consider checking out SoFi’s options trading platform offered through SoFi Securities, LLC. The platform’s user-friendly design allows investors to buy put and call options through the mobile app or web platform, and get important metrics like breakeven percentage, maximum profit/loss, and more with the click of a button.

Plus, SoFi offers educational resources — including a step-by-step in-app guide — to help you learn more about options trading. Trading options involves high-risk strategies, and should be undertaken by experienced investors. Currently, investors can not sell options on SoFi Active Invest®.

Photo credit: iStock/Pekic

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