I saw margin required for Future buying is more than option selling ?
NATURAL GAS today buying Future margin is 70 K.And option selling is 76K.
How is it possible ? Margin should be less.
Can you DM the client ID? We will check and update the exact reason.
ZA6696
I placed order to sell Natural Gas Option which was rejected. Reason was insufficient fund.
My margin is 72K. NG required 70K. But the reason says margin required 76K+.
The margin required for option selling is usually similar to futures margin, but it can sometimes be a bit higher or lower. This depends on factors such as the option’s moneyness (how close the strike price is to the current market price), the premium, time to expiry, and especially the implied volatility of the underlying asset. When selling At-the-Money (ATM) or In-the-Money (ITM) options, the margin required may actually be higher than for a futures contract. This is because the risk to the option seller is greater – if the market moves sharply, the potential losses can be significant, especially for naked (unhedged) positions. To protect against this, the exchange collects a higher margin as a buffer.
In your case, since the option you are attempting to sell is near ATM, the exchange views it as more risky than a simple futures position and thus requires more margin. It’s also important to note that options margins increase further when market volatility is high, as sudden price swings could lead to larger losses for option writers.
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Thank you Ragavendran Sir for explaining in details. While trading with other broker, I get credit for the selling premium & the the required margin becomes nearly 50K. It enables me to use the balance margin for another trade.
What is difference between Zerodha & other brokers ?
By the way, one more question…
For trading BSE, MCX etc. I use the same symbols for other brokers. But Zerodha ask to write BS, MC etc.
This is also different from the other brokers. Why ?
Dear Sir, Today NG is at 309. I tried to sell 310CE (ATM), 320CE (OTM), 330CE (Far OTM) but not getting any credit. Margin required is more than Future.
Then how far OTM is tobe traded ? If I trade 340CE, 350CE to get the credit, I may not be able to sqare off (lack of volume) my selling position.
PLEASE GUIDE !
It may vary based on volatility; currently, it is slightly higher than NG futures, as explained above. You can short any of the mentioned strikes according to your preference.
Regarding the credit (The option credit will be credited immediately once you short the option), but I’m not sure what you’re referring to could you please elaborate?
Yes, sometimes liquidity is an issue, but you can trade all the available strikes in NG.
Why Zerodha is charging higher margin as compared to other platform like Angleone, motilal. Is there any specific reason also last two days of expiry margin will be much higher as compared to other platform. Why?
We are not charging anything above the exchange-prescribed minimum. No additional margin has been charged from our end for any segment in the recent past. The margin visible throughout the day is only the BOD margin. If you have any scenario showing otherwise, please share the details here. 
@Adarsh_Patil Will share you details once we see difference. One more thing kite price how much time it take to update. Sometime I see lag of 15 to 20 sec, if I compare with NSE??
Keeping scripts in market watch is difficult in some cases. MCX, BSE, etc need to be write as MC Future or BS Future. It is not with other brokers. We don’t have in notification for the same & we miss some chances.