Help me to find lowmargin option writing broker and lowest brokerage....

[alroyraj]

In that case since I would carry.. No broker would allow lesser margin than required due to huge penalties.

So u have to look at margin funding which means u have to speak to some broker who also does that and pay interest on the funding part

No puneet,
What I meant is say I go for a short straddle on tech mahindra I short 550 put and call we need possibly 2 times the futures margin, but risk is limited so possibly it requires less. Also usually one position is just in the money and other is out of the money that's what I mean. I did this trade once very long back need to check what was blocked

 

[puneetsinghania1980]

No puneet,
What I meant is say I go for a short straddle on tech mahindra I short 550 put and call we need possibly 2 times the futures margin, but risk is limited so possibly it requires less. Also usually one position is just in the money and other is out of the money that's what I mean. I did this trade once very long back need to check what was blocked

Thats a risky trade from all points and I reckon no one is going to fund that

 

[alroyraj]

Thats a risky trade from all points and I reckon no one is going to fund that

A short straddle is riskier than a naked short call, depending on how proactive the rms team is the margin will be blocked. Most people gets scared off by the unlimited risk part of it, but even assuming the worst every broker assigns some margin and if it goes against the trader they decide to square it off. Basically we try and take this position when we assume flat movement in the underlying. Though not always required having the same stocks in demat almost say equal to one futures lot helps to have confidence in going for this.
Funding wise depends on stock margin of we have good large caps not much risk there. I am talking more in terms of margin benefit say 1.5 times future limit for a short straddle.

 

[lemondew]

There are some brokers who allow option writing without taking any margins. They settle everything in cash at month end. So you can trade without investing much. I havent used them. Nor do i recommend. But they allow only people whom they trust and through reference.

If the broker goes bust there are chances that some money of yours could be trapped. This may happen in case some client of his has lost money and usne haath utha diya. I know some folks who have been doing this and has not lost money due to broker going underground or stuff.

As someone else said its best not to get involved in this unless you know the broker well and you are ok with loosing some of your profits. For large accounts its better to go with the popular brokers

As for the cheapest I think astha takes only span margin which I read some days back and the margin files that come with zerodha are the standard most of them more or less take the same. You can negotiate with full service brokers to block only span margin for selling For buying all take the entire premium for overnight positions.

 

[kathir_555]

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