BUY ZEEL 590PE @ 13.2 TARGET 15.75 SL 10.25
here what would be premium…??
13.2 is the premium here. It’s the price at which you buy the options contract.
There is no leverage when you buy options you have to pay the full premium.
Option buying:
When you buy options, either equity or currency there is no additional leverage we provide except in case of market orders where orders may get traded in value excess of funds available in the account. So if you are buying calls or puts of any contract, the premium required to buy them has to be present in your trading account. You can trade options either with product type as NRML or MIS, but since there is no additional leverage provided if you use product type as MIS, it is advisable not to use MIS while buying options since all MIS positions would get squared off before the close of markets.
Option Writing/Shorting:
When you short an option, the margin required depends on various aspects like underlying, expiry, volatility and more. We are the first brokers in India to have an online SPAN calculator tool which lets you calculate the margin requirement for shorting an option by mocking the position in the tool.
You can short option either using the product type as NRML or MIS. The SPAN calculator tool lets you know the margin required to hold overnight or NRML margin, if you trade using MIS you will need only 40% of that margin.