Can anyone explain

someone please explain why higher margin required

ITM options positions will attract a physical delivery margin - 50% of the contract value.

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Stock F&O are physically settled. Hence, for Long ITM Options, the exchange will block physical delivery margin from expiry minus 4 days. Explained in detail here.


Recently there was a minor tweak in this policy for futures and short options positions. But higher margins are still required for long options positions. The increase in margin starts 4 days before expiry as NSE (NCL/CMPT/43262) mandates it -

Day (BOD-Beginning of the day) Margins applicable
E-4 Day (Friday BOD) 10% of VaR + ELM +Adhoc margins
E-3 Day (Monday BOD) 25% of VaR + ELM +Adhoc margins
E-2 Day (Tuesday BOD) 45% of VaR + ELM +Adhoc margins
E-1 Day (Wednesday BOD) 70% VaR + ELM +Adhoc margins
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