Status
Not open for further replies.

LivetoTrade

Well-Known Member
dear,
if i want to trade 10 lots of nifty options, according to their limit( i have no idea, how much limit they are giving)....how much money i need to keep in my account.
For options you are required to pay in full. No margins on options.
 

TheDreamer

Well-Known Member
For options you are required to pay in full. No margins on options.
a little more info...

no margin for option buying... say 5300 CE is at 250... u need Rs. 12,500/lot or Rs. 1,25,000 for 10 lots...

for option selling...margin reqd... same as buying/selling 1 future lot... though OTM options require less margin to sell...

Hope this answers your query... :)
 

hc9001

Well-Known Member
Re: Option Margin.

dear,
if i want to trade 10 lots of nifty options, according to their limit( i have no idea, how much limit they are giving)....how much money i need to keep in my account.
Dear, Vssoma,
the answer of your query as follows:- :)


Option Trading Margin:-

For BUYING: No Margin benifit, you have to pay the full premium.

For SELLING/WRITING:-
1. At The Money Options:-

i). Intraday: 40% of Total Margin (SPAN + Exposure margin) of Futures prescribed by the Exchange.
IMP NOTE:-
Intraday Margin Time: 9:15AM-3:00 [If shortage position will be squared off automatically]

ii). Positional: Full margin as of Futures.

2. See below margin requirement for other type of options selling (40% for Intraday Trading as mentioned above)

In the Money -> 30% more than Futures Margin
Deep in the Money -> 60% more than Futures Margin
Out of the Money -> 20% less than Futures Margin
Deep out of the Money -> 30% less than Futures Margin

3. The writing/sell price of an Option increases based on the expiry date of the option.
The next month option will use 20% more margin than the present month option. Similarly, the far month option will use 30% more margin than the present month option.

4. Spread Margin Benefits are provided only on Calendar Spreads. Youll have to submit only the margin requirement for the higher side of the Spread.


---------

Happy Trading. Cheers. :clapping:
 
Status
Not open for further replies.

Similar threads