I tried to sell 2400 quantity for 25200 ce 03 aug expiry option today . My order was rejected because the required margin was ~1400000. In upstox for the same contract required margin was roughly 150000. When i called and asked they said the margin required is same for 31st aug and 3 aug which seems stupid to me. since premium of latter is almost 100 times that of the former. Please look into this or otherwise i may have to close my account with you people
Consider any other positions that u may be holding at that time
Existing positions sometimes multiply margin requirements
Exchange mechanism of calculating margin on Options is ((strike price + premium) * quantity * 8%). It works same for all series options. Ideally if you’re shorting weekly / monthly, option margins will almost be the same or there will be a slight variation in margins because of premium. Brokers should calculate margins based on these guidelines and if someone is charging much lesser than this, it is highly risky for both the client and the broker.
@ajay_cs : I feel margins are pretty similar, for monthly and weekly.
Do you have screen shots for the same ?
Bank nifty expires weekly. On the margin calculator provided by zerodha i cant find any weekly numbers for bank nifty only monthly. how to calculate margin needed for monthly expiry? Because month end premium and margin is different when compared to weekly. Would appreciate some assistance!
As a thumb rule , weekly will be 3 to 4k lower compared to monthly options for same strike. If one want exact values, then they can place one limit order and check.
1 Like