I understand in futures m2m loss has to paid daily and that is why you need to have cash balance in your account. (collateral cash will not work I think - please correct me if am wrong @ShubhS9)
But when we have sold option (either call or put) and it goes against our view …i.e. M2M loss for that day - what happens to that loss ? I mean like futures we don’t have to pay daily that I know…not sure if we need to do anything for that m2m loss?
I think it will increase margin requirement so if we don’t have sufficient margin than we might get exchange penalty and possibly interest charge from Zerodha because at least 50% cash collateral is required? @Vij @TradeB2B @ShubhS9