Margin requirement for Option Writing for Overnight Position

General
1

Hi,

  1. If i have have 10k cash + 40k collateral for Option Writing.

For overnight positions I will be still allowed to take positions for 50k and interest will be charged on daily basis for the days it is open.

Here interest will be charged on debit balance of Rs.15K, based on 50% cash rule. As Rs.15K is being used from working capital of brokerage firm.

Please correct me, if I am missing something.

  1. If i have have 25k cash + 25k collateral for Option Writing.​

For overnight positions I will be still allowed to take positions for 50k and NO interest will be charged as there is NO DEBIT Balance.

If MTM, margin requirement changes and I still maintain 50% cash. I will not be charged interest.

Please correct me, if I am missing something.

Regards,

Jinesh

2

  1. Yep correct (assuming you are trading at Zerodha).

  2. Yep

3

Can Liquid bees be pledged for the cash component requirement?

4

Yes, you can. Liquid Bees are considered as cash equivalent by the exchanges.