Need help regarding brokerage and margin required.

#1
I want to know that,,if I will short sell Put option in option market like
e.g...Strike Price- 5300
Short sell Put option Premium - 7.15
1 lot-50 shares

Squared off at premium of 4.15

Pls. tell me ,how much brokerage I have to pay on any normal brokerage plan and how much margin money I will require to deposit to Broker for each lot?

(Pls. tell me if I will trade with a normal broker not with very cheap nor with very expensive)
 
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#2
I want to know that,,if I will short sell Put option in option market like
e.g...Strike Price- 5300
Short sell Put option Premium - 7.15
1 lot-50 shares

Squared off at premium of 4.15

Pls. tell me ,how much brokerage I have to pay on any normal brokerage plan and how much margin money I will require to deposit to Broker for each lot?

(Pls. tell me if I will trade with a normal broker not with very cheap nor with very expensive)
Margin required should be equivalent to the same required to short 1 lot of Nifty future which can be around 25000.
As the strike is far Out of money some brokers may charge less margin.

As far as brokerage is concerned it varies with brokers.
I am using Zerodha and it charges 20 rs per order.
for options other charges are very less so just check the brokerage or you can try their brokerage calculator, you will get an idea about the charges.
 

Mr.G

Well-Known Member
#3
I want to know that,,if I will short sell Put option in option market like
e.g...Strike Price- 5300
Short sell Put option Premium - 7.15
1 lot-50 shares

Squared off at premium of 4.15

Pls. tell me ,how much brokerage I have to pay on any normal brokerage plan and how much margin money I will require to deposit to Broker for each lot?

(Pls. tell me if I will trade with a normal broker not with very cheap nor with very expensive)
There is not such thing as short selling in the options market. When you "sell" an option you are "writing" a contract. And margin required will be the full value of the contract i.e. 100% = 2.65lac
 

ashu1234

Well-Known Member
#4
2.65 lacs!!!
are you kidding me.
check with the broker dear its same as shorting one lot of Nifty i.e near 25000.

Brokerage may vary from as low as 9 or less to as high as 100 depending on the broker plus other statutory charges extra.
 

Mr.G

Well-Known Member
#5
2.65 lacs!!!
are you kidding me.
check with the broker dear its same as shorting one lot of Nifty i.e near 25000.

Brokerage may vary from as low as 9 or less to as high as 100 depending on the broker plus other statutory charges extra.
I have read 100% margin is needed to sell options. Please can you see and check? I might be seriously mistaken! Please can you check with your broker how much margin is required for writing options?
 

ashu1234

Well-Known Member
#6
I have read 100% margin is needed to sell options. Please can you see and check? I might be seriously mistaken! Please can you check with your broker how much margin is required for writing options?
Actually 100% margin sometimes has different context, recently NSEL had a cash crunch so it intimated all its trading partners to ensure 100% margin in reality 100% means 100% of span margin.
Margin can be segregated as Span margin and exposure margin which give us the total margin required. Currently Nifty has 5% span and 3% exposure margin.

So I'm sure as I've traded options it is 8% of contract value which comes below 25000 in any case.
 

Mr.G

Well-Known Member
#7
What will be the holding cost if we sell a contract?
 

Mr.G

Well-Known Member
#9

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