Hi all,
I have started trading options recently and I came across this issue:-
I took long position on nifty 26350CE @105 premium (MIS) , so adequate margin was mainatined which is required to buy a lot of nifty index CE .When it started going into loss , my margin requirements went very high when I tried exiting my position. Can anyone please help me on this?
Perhaps you had an existing pending order of the sell of the same option, and tried to give another one? That will attract proper sell side margin.
@krishna_agarwal Yeah, as mentioned above, this is likely due to a pending order against the position. If you have a pending order, any new orders placed will be considered as a new position, and you’ll need margin for them.
The total required margin, including any pending orders, will be shown upon rejection. You must cancel the pending order and place a new one.
Please I clarify myself, in the option trading there is no margin requirement for buying options as need to pay full amount of money related to what we buy. But for selling options, we have margin requirement to fulfill the selling order. In this case think it is about basket order with buy and sell option orders, as the buy order on top and sell order at the bottom to benefit upfront margin due to sell order margin requirement. To benefit upfront margin, the orders should be exited all at one time not one by one. Please correct me if not relevant. Thanks.
Yes , thank you guys , it was due to open orders which wasnt executed .