when nifty is falling PE sell margin requirement is around 72-82K and CE sell is around 18-24K .
But when Nifty is raising PE sell Margin requirement is around 18-24K and CE sell is around 72-82K .
Does this happen with other brokers as well or only with zerodha ?
In either case is it not discriminatory and Biased ?
Why cant it be neutral and make either side selling around 40K why to increase or decrease the margin according to market conditions ?
Also anyone notices zerodha margin changes if just refresh .
But Risk factor already taken in right with heavy margin as compared to margin of Buy .
even then just making CE costly while rising up and PE costly while coming down is like managing a casino just to make odds high against the winners . Coz itll force everyone to one edge and everyone will become buyer or a guy who has Deep pockets and plays long game only he can win .
I personally feel Its making the entire system biased and everything is designed for Rich guys and we are all just pawns used to make them more rich .
can you post specifics when mkt is open?
I’ve not seen such wide differences on individual legs. This happens on the 2nd leg though, due to margin benefit.
Even i thought so , but we tried for new user . Its the same . When nifty is going up CE sell becomes costly and when nifty falls down PE sell margin is around 72-78k .
My concern is not about high or low margin its about partiality and bias coz its taking away my edge , I am into option selling only . I get max profit when market moves heavily on one side and zerodha asking more margin on the market movement side which is not publicly told / printed anywhere.
margin req. is based on expected move. so yes, if expected move is higher on one side, the margin req. will be 10-20% higher than the other leg. It isn’t decided by broker but the exchange that calculates the margin req.
I thought the same but I tried from a new account , even then PE sell is showing around 24-28k , and CE sell is 64-72K. ( last few days but 2 months back it was reverse)
This isn’t possible. I am using zerodha from past 6 years and I have not seen something like this.
If there is already position open, then obviously the margin requirement for opposite position will be less.
If you have sold one lot of ce already and now want to sell one lot of pe margin comes around 18k. Even if you have one lot on both sides there is a possibility of margin on one side is less.
But what you are stating have never happened with me. Anyways let the mods confirm. @ShubhS9@Meher_Smaran
His screenshot shows the opposite, his post itself is wrong.
Generally Margin on the market direction will be slightly high say 5k to 10k than the opposite direction, If you ask for the reason they will just reply with one word “volatility”. needless to say many actually don’t understand it completely
W.r.t to that PE screenshot, there should be an open position already, there could be no other reason to it, as far I understand
Team has checked this and as your portfolio had multiple positions across various weekly and monthly strikes, The margins were less for the side where there was hedge benefit available considering your entire portfolio.
A similar scenario happened to me long back when i was not able to buy Options that were not allowed in some strikes but by virtue of Short Pos > Long Pos.
At that time I had some open BUY(Long option) orders and these are counted too against already SHORT positions.
so usually check open orders along with open positions. The combined two have total effect.
