GoldM options margin

[siva0]

Hi all ,

Since last month i’ve been trading in GoldM options, one thing i noticed yesterday was my margin is not reducing even if i am taking ce buy against ce sell .

Are commodities option margins are separate from nifty options margin rules ?

[Abhijit]

I have also observed this issue with Silver.

[pavinjoseph]

There is very little hedge benefit offered by MCX.

MCX Options Margin Query

Since most commodity contracts have much higher (Span + intra-commodity charges) or (short option minimum charge), there is very little hedge benefit that you get. This holds good for inter-commodity contracts as well. There is not much hedge benefit from the MCX exchange end itself. Providing here SPAN Margin computation methodology The total margin requirements for a member for a portfolio of futures and options contract would be computed as follows: i. SPAN will add up the Scanning Risk…

[Vv_Ff]

Hi,does your short position margin increases or fluctuates if OTM options becoming ATM Close to the money or ITM?

[siva0]

ya it fluctuates

[Vv_Ff]

May i know how much percentage it fluctuate?
For example i short a OTM gold option at 1.4 lakhs.At sometime option sold is in good profit but Futures comes to ATM but sold options are in good profit Due To time & theta decay.Does Margin change very highly?
Does it fluctuate more than 5% ? From 1.4 lakh to 1.47 lakh? I am just asking this as an example.