Bank nifty calculation pls help


#1

Hi,

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

Thanks
Jithesh


#2

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


#3

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