A simple question.

S

sameer999

Active Member
#1
#1
If i want to write options, how much margin i need to place?

where can i get margin details for writing an option contract?

I searched nseindia but could not found.

I want margin report for all the index and stock options.
 
T

trader.trends

Well-Known Member
#2
#2
Sameer
The margin required is the % of the contract value. You will find the lot size of the contracts and the scrips under FNO under the NSEINIDA>F&O>contracts Information section. The span margin keeps varying with the volatility of the market. For now Nifty contracts need 12% margin. That is if you need to write an option of 4700 strike price at a premium of 165 then the margin value is 50*(4700+165)*12%. Your broker is the best source for current margin requirement.
 
S

sameer999

Active Member
#3
#3
trader.trends said:
Sameer
The margin required is the % of the contract value. You will find the lot size of the contracts and the scrips under FNO under the NSEINIDA>F&O>contracts Information section. The span margin keeps varying with the volatility of the market. For now Nifty contracts need 12% margin. That is if you need to write an option of 4700 strike price at a premium of 165 then the margin value is 50*(4700+165)*12%. Your broker is the best source for current margin requirement.
Click to expand...
Hi, i hav checkd nseindia so mny times , but what am askin is , how did u knw that nifty contracts need 12% margin?
from where do u get that data report of margins?
 
T

trader.trends

Well-Known Member
#4
#4
We get the report from our brokers. Each brokerage house has its own requirements of margins in addition to what the exchange imposes. Generally the broker terminal has the options to check out the margins required. In PIB, the options scripwise margin percentage under FNO gives the details.
 
S

sameer999

Active Member
#5
#5
trader.trends said:
We get the report from our brokers. Each brokerage house has its own requirements of margins in addition to what the exchange imposes. Generally the broker terminal has the options to check out the margins required. In PIB, the options scripwise margin percentage under FNO gives the details.
Click to expand...
yes , nseindia provides margin requirement for everyday but all brokerage houses generally charge higher than what nseindia specifies.

But , can u help me find margin at nseindia ?
 
S

sameer999

Active Member
#6
#6
Can u tell me suppose, if i write an option contract of nifty CE 4800 @ 85 ,

then premium earned = 85x50

what will be the margin i need to pay?
 
T

trader.trends

Well-Known Member
#7
#7
The margin on that CE is (4800+85)*50*12%=29310. This is the initial margin reqd. If the position goes against you, that is the market rises, then you have to have cash to provide for the additional MTM at EOD. if the market moves to 4800 and the CE becomes 165, then the contract value is (4800+165)*50. Margin is calculated on this at EOD and the difference between your initial margin and the margin at EOD is debited to your account. Similarly if the market moves in your favour, the difference in margin is credited to your account.
 
S

sameer999

Active Member
#8
#8
trader.trends said:
The margin on that CE is (4800+85)*50*12%=29310. This is the initial margin reqd. If the position goes against you, that is the market rises, then you have to have cash to provide for the additional MTM at EOD. if the market moves to 4800 and the CE becomes 165, then the contract value is (4800+165)*50. Margin is calculated on this at EOD and the difference between your initial margin and the margin at EOD is debited to your account. Similarly if the market moves in your favour, the difference in margin is credited to your account.
Click to expand...
i thought that the margin is calculated on the premium amount.

like for ce4800 @ 85 ,

margin = 50x85 x 12%
 
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