@headstrong :
How can a POSITIONAL option writer get overnight exposure? As far as I know, as soon as we carry over the position, we need to pay full margin with all the brokers.. (and even keep 50% margin as cash equivalent/liquibees etc) to fulfill 50:50 cash to collateral margin requirement.
Correct me if I am wrong? I have been writing OTM nifty options (positional, atleast keeping them for 35 days) from past one year by paying FULL margin (40K per lot for Nifty options). If I write 25 Nifty OTM options, I need to maintain a 10 Lakh account (colalteral+cash) with my current discount broker.
Am I doing something wrong? (Is there a better way to do this with less capital)?
How can a POSITIONAL option writer get overnight exposure? As far as I know, as soon as we carry over the position, we need to pay full margin with all the brokers.. (and even keep 50% margin as cash equivalent/liquibees etc) to fulfill 50:50 cash to collateral margin requirement.
Correct me if I am wrong? I have been writing OTM nifty options (positional, atleast keeping them for 35 days) from past one year by paying FULL margin (40K per lot for Nifty options). If I write 25 Nifty OTM options, I need to maintain a 10 Lakh account (colalteral+cash) with my current discount broker.
Am I doing something wrong? (Is there a better way to do this with less capital)?
Short reporting of margin attract 1 percent penalty from exchange if reported in given window of 5 days. Wrong reporting of margin if caught attract 100 percent penalty.
Stock Broker not collecting from client but still reporting to exchange , be careful position may not be in exchange . It is possible that trades in exchange are going as PRO trade and not client trade . careful about Stock Broker who is doing wrong reporting. In past SEBI , Exchange and ED has done raid on many such location where such kind of Dabba Trading happens.