how does new rules affect intraday option buying from dec.the circular says 25 percent of nrml margin for 3 months. so does that mean that i can still get 4x leverage in intraday option buying for next 3 months??
Buying Options does not require SPAN + Exposure margin. When you buy Options you pay all the premium upfront, so new rules do not have effect on buying Options.
i mean will i get any leverage on option buying. like for now its 1.4 x leverage.will that be continued??
This will not be possible from December 1st.
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Why is option buying has less margin required compared to selling an option have attached screenshot for you reference. Can you explain please?
Your losses are limited to premium paid as a Option buyer, while for Option seller, losses can be unlimited as there is no limit to which the prices can rise. Hence, for Option buying, margins are lower compared to Option selling.
For more information about Options, would suggest you read this module on Varsity:
Cam i place BRACKET ORDER, COVER ORDER & TRAILING STOP LOSS in OPTIONS TRADING?
As long as u are loosing decay to the big players there is no issue for SEBI. Just dnt be a seller be a buyer
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Can i place BRACKET ORDER, COVER ORDER & TRAILING STOP LOSS in OPTIONS TRADING?
BO’s are currently blocked due to volatility. You can place CO. Trailing SL not possible.