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,
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.