F&O by design is leveraged trading. Theoretically speaking, you would require 50 (lot size) *19700 (CMP) = 985000 rs to trade in Nifty. But as you can trade with lesser amounts (margin of 112k approximately for buying/selling future and selling options) and much lesser in options (equivalent to premium paid) - Theoretically speaking, it is a leveraged trade.
If you’ve sold an option and if the market moves against your position big time, you may have to bring in funds to make good the losses.
Now coming to option buying, you are correct. The maximum loss is the premium paid so you can say your capital is the maximum amount you can lose. This holds true for index option buying as they are cash-settled but for stock options that expire ITM, physical delivery is mandatory and that’s where the concept of leverage comes into the picture.
Check this out
In short, if you are only an option buyer, you need not worry about any margin penalties as long as you are trading in index options and stock options that are not in the money(ITM).
You should be careful about maintaining adequate margins for stock options that are ITM starting from one week before expiry as explained here
One thing more I will buy only ITM BECAUSE OF LESS TIME DECAY .
IS THERE WILL BE ANY PROBLEM???
It means that you should not forget to exit before the market closes
even if you forget and the time of the market is over then the position cannot be ITM (when market closes in the money) then only penalty will be charged
there is no problem if it is OTM(when the market closes out of the money or far).
In short, if you are not an option seller or spread trader but a naked index option buyer, you have nothing to worry about about margins, penalties, or leverage.
There is nothing to worry about having to close your open position either. Its all about seeing profit and booking it.
There are a lot of things, so you should get a book about futures and options trading. Market is a place where learning is earning , don’t ever think you will leant the concept and you start to make money next day. That’s not how it works! You have to learn every day, every second so that you stay ahead than other people.