What is Obligation Amount as part of F&O contract?

Obligation amount in futures refers to the margin blocked for the position on the trade day (T day) & includes Mark - to - Market (profit / loss) for that day. From T +1 day Incase of overnight position, MTM is calculated based on the previous closing price, based on this obligation(profit/loss) amount is debited or credited from your available balance till the position is squared off.

In case of options there is no daily MTM settlement. It will settled based on you execution price Buy & Sell or vice versa.

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