Option selling: Margin requirement - continuous change

Dear All ,

Has anyone observed while selling nifty options ,

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 .

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Maybe because more risk to sell puts while nifty is falling and sell calls while nifty is rising.

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 .

There has to be level playing field .

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Life my friend was, is and will never be fair.

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@Gnome true that , Thats why at least I want trading to be fair .

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.

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See the margin difference. But itll be opposite today if nifty would have fallen more than 150-200 pts .

do you already have a bought put, a sold call or a sold future? That is likely the reason for lower margin req.

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.


You already have other positions open. Otherwise this is not possible.

@abhiwin123 if you have zerodha account try checking , you will be able to understand , rather than blind attack.

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

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i dont think only open position necessarily. (Obviously open position directly brings margin benefit to opposing leg)

OPEN Order (unfilled) also blocks margin and this can also be the reason that is triggering margin benefit on 2nd order.

@siva0 check order book, there maybe order pending

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Hi @siva0,

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.

@Meher_Smaran , Meher problem is not in the portfolio.

Can you please confirm as of today if I want sell Naked PE how much margin it asks and for Naked CE sell how much it asks

There is a gap of atleast 12-15k

Its not restricted to my portfolio its across , i check with 10 of my colleagues every where its the same .


I checked just now

I took At the money options naked and margin is showing more or less the same