Margin Calculation in options

F&O
1

Hi

let’s say for selling an option
SPAN+Exposure as per BOD is 1,00,000 and after selling the premium collected is 30,000.

So what would the EOD margin ?
1.) 1,00,000
2.) 70,000 (SPAN+Exposure - premium collected).

When this premium collected is available for use? can anyone guide me to the Sebi circular for this?

2

Hey @Manish_Arora1 Premium received from writing an option settles on T+1 so it won’t be adjusted towards the upfront margin (SPAN + Exposure) on same day. This will be part of your cash or opening balance the next day.

P.S. You can use this premium to buy option on same day.