If fund available in acc and required margin for a option strategy is same
If trade goes into loss…will there be any margin short fall?..Or the money will be deducted from the margin after closing trade
Right, it can be, after position is taken also span can vary, so one need to maintain span and exposure all the times.
1 Like
The required margin is the amount of margin required to enter the trade. The final margin is required margin minus premium received.
You need to maintain enough cash in your account to manage any MTM loss. (ie) if your margin is 0 and mtm loss is rs 2000, you’ll have to bring in rs 2000 to cover your mtm loss.
Also note that the margin requirement is not fixed and depending on the volatility it might increase / decrease and might trigger margin calls.
1 Like