Derivatives - Option Writing (Selling Options) in India - Margin Required in MARKETS - Option Writing or Selling is pretty popular all across the globe.
When an option buyer loses money, an option writer ...
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07-12-2013 02:49 PM
Option Writing (Selling Options) in India - Margin Required
Option Writing or Selling is pretty popular all across the globe.
When an option buyer loses money, an option writer gains that money lost by an option buyer.
An Option writer gains as time erodes and as expiry nears. Options premiums drop rapidly on all Options contracts which are out of money (No intrinsic value). An Options writer gains in all these contracts.
Margin required for writing an Options contract in ICICI Direct varies between 15,000 to 30,000 Rupees. The disadvantage with ICICI is the auto trigger values which do not work in the best interests of the trader.
Basically most brokers block around 25,000 in Margin. I will try to get margin required for each broker.
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