Writing Options

rebeck10

rebeck10

Member
#1
#1
When we write an option , and the position is in loss, do we have to pay MTM margin daily or only when we exercise the position?

For E.g i have shorted May29 7300 CE at 100 RS. If the market tends to move 7400 in the next 2 days and the premium increases to 150 rs, then will I have to pay a MTM amount of 2.5 K ?
 
P

prabhsingh

Well-Known Member
#2
#2
rebeck10 said:
When we write an option , and the position is in loss, do we have to pay MTM margin daily or only when we exercise the position?

For E.g i have shorted May29 7300 CE at 100 RS. If the market tends to move 7400 in the next 2 days and the premium increases to 150 rs, then will I have to pay a MTM amount of 2.5 K ?
Click to expand...
MTM premium is adjusted on daily basis.
 
J

jaikoshu

New Member
#3
#3
Inbuy one nifty 7200 call in rs 120 and sell 7400 call in rs. 70. what shall be my margin on 7400 call sold- is it half of the normal margin ?
 
trump

trump

Well-Known Member
#6
#6
yep, you have to hv sufficient margin in your trading account to cover the Margin calls or MTM obligations , but it varies from broker to broker and depends on the rules the broker sets for their clients, kindly check with your broker.
 
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