Options seller or buyer limit

F&O
1

dear sir
i would like to know whats the limit or duration of a trader to be a option buyer only. i see many of guys earn handsome profit in just buying options(either call or puts).

and i see a comment where it is written that we cannot buy options if we have budget over 15 lakhs? any mandatory rule that only u can sell options if u exceed certain limit of profit?

is it allowed to invest (have a budget of 1 or 2 lacs) and trade only in buying options?

is there any kind of limit of profit?

thank you

1 Like
2

There are no such restrictions as you’ve mentioned above. Doesn’t matter how much capital you have you can use it as per your need either to buy options or short options (though the margin requirements for shorting options are higher than funds needed for buying options). Same goes for profits, there isn’t any restriction.

If you’re new to Options trading, would suggest you read this module on Varsity :slightly_smiling_face: