Hi,
Could someone please help me understand writing nifty options. I understand the Initial margin that is paid upfront - which is the nifty future margin - but cannot follow Mark to market rules. For example: If I short a 4800 put for this series at 51 today, my initial margin is 27000(approx)+51*50.
Now if on monday the nifty is 5000 or 4600 can someone tell me what is the mark to market that I need to give to my broker or get from my broker. Also, if the calculation is based on the nifty index or future. Another question was if I write a spread option i.e. sell lower priced option and buy higher priced option what will my margins be?
Thanks in advance.
Could someone please help me understand writing nifty options. I understand the Initial margin that is paid upfront - which is the nifty future margin - but cannot follow Mark to market rules. For example: If I short a 4800 put for this series at 51 today, my initial margin is 27000(approx)+51*50.
Now if on monday the nifty is 5000 or 4600 can someone tell me what is the mark to market that I need to give to my broker or get from my broker. Also, if the calculation is based on the nifty index or future. Another question was if I write a spread option i.e. sell lower priced option and buy higher priced option what will my margins be?
Thanks in advance.