Shorting OPTION amt required in account.

Trading
1

If I am short selling OPTIONS. Let’s say

NIFTY15000CE. and the LTP of it is Rs100. I want to set Stoploss to Rs110.
How much money do I need in my account?
Is 110 x 75 = Rs8250 enough for each lot?

Thanks

2

For Shorting Options, you need to maintain SPAN + Exposure margin, you can check the margin requirements here.

3

Thanks Shubh.

I appreciate the handy tool in the link.
So talking about the exposure margin, it the 80% of your assets. Correct? And If I have no holdings in my Demat would it be considered Zero exposure? Also, does holdings in your MF considered assets?

Secondly, How is span calculated.

let me say I am buying NIFTY15000CE, Today is 11 Jun 2021 and the expiry is on 18 Jun 2021. and other expires on 25Jun 2021.

Also Would like to know the math behind the margin calculator.

Thanks.

4

No, the Exposure Margin is based on the contract value of the Futures or Options, not on stocks or mutual funds you hold in your demat account. This post on Varsity explains how margins work, do give it a read:

5

I will go through it.

thanks.

6

I had some problems while using the margin calculating tool.

What symbol should I select if I have to sell the current week’s expiry? let me say today is 28 June 2021 and I want to sell 1 JULY 15900CE expiry which in the current week. I am not able to find a symbol for this.

Also would like to know What is the margin required for MIS type of order.

I would like to trade intraday. Please suggest accordingly.

Thank You.

7

@I_think It seems that you don’t know about derivatives trading. It is a sure shot way of losing money. Better would be to donate 50% of the money in charity. You will have the satisfaction of spending your money for good cause and karma will return it back some day.