Bank nifty calculation pls help



Pls help on this calculation if anybody does have knowledge.

Bank nifty any PE or CE if I am selling how profit/loss is calculated.

Say Bank nifty 25500 CE at 20 I am selling and buying back at 10. For this we may need more money to trade this, I had tried once paperwork, it was looking for 80k-90K rs. Why this much is required ?

Hope it is the same applicable to PE also.thanks for checking this



Requerd full margin for options writing…
Because of when you sell any options means limited profit and unlimited loss…


Selling Options requires margin money as potential for loss is theoretically unlimited. Yes, It’s applicable for both CE and PE.