Shares as margin

A

anandktripathi

New Member
#1
#1
Hi,

Today only I came to know about a service from my broker named SHARES AS MARGIN. After going through with the FAQ's it seems an interesting thing but still a lot of questions are unanswered.

Mostly I trades in Index Options.

Will I be able to carry forward my position till the expiry if I have enough shares to deposit i.e. I want to buy a call of Nifty 4000 and I can deposit my shares instead of cash and carry forward my position till the expiry without depositing the cash????

Thanks in advance......

Anand
 
TFL

TFL

Well-Known Member
#2
#2
anandktripathi said:
Hi,

Today only I came to know about a service from my broker named SHARES AS MARGIN. After going through with the FAQ's it seems an interesting thing but still a lot of questions are unanswered.

Mostly I trades in Index Options.

Will I be able to carry forward my position till the expiry if I have enough shares to deposit i.e. I want to buy a call of Nifty 4000 and I can deposit my shares instead of cash and carry forward my position till the expiry without depositing the cash????

Thanks in advance......

Anand
Click to expand...
Anand,

There is no problem in carry forwarding your position it expiry even if you have used SHARES AS MARGIN.

Hari.
What you think of my thread http://www.traderji.com/equities/24402-60-min-flow-break.html
 
A

anandktripathi

New Member
#3
#3
Hi Hari,
Thanks for reply.
I am using ICICI Direct and there they are giving me the service of Shares as Margin but they said that I have to pay the premium in cash in case of I am trading in Options (its written in their FAQ's), may be I am getting it wrong, can you tell me in more detail???

Thanks

Anand
 
P

pakatil

Well-Known Member
#4
#4
anandktripathi said:
Hi Hari,
Thanks for reply.
I am using ICICI Direct and there they are giving me the service of Shares as Margin but they said that I have to pay the premium in cash in case of I am trading in Options (its written in their FAQ's), may be I am getting it wrong, can you tell me in more detail???

Thanks

Anand
Click to expand...
Dear Anand,

When you buy a Call, Seller needs to be paid the Premium. How do you expect it to be paid, unless there is real cash.

Margins are required for Futures Trading and Selling Options. Margins are never touched till you are providing enough Cash Balances for MTM Losses if any.

Cheers
 
TFL

TFL

Well-Known Member
#5
#5
pakatil said:
Dear Anand,

When you buy a Call, Seller needs to be paid the Premium. How do you expect it to be paid, unless there is real cash.

Margins are required for Futures Trading and Selling Options. Margins are never touched till you are providing enough Cash Balances for MTM Losses if any.

Cheers
Click to expand...
Yes. Add that too anand.
 
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