Option Selling

Tejas Khoday

Co-Founder & CEO, FYERS
#2
Hello @adikul, I have said this before on this website somewhere. Brokers cannot provide margins for overnight derivative trades. The regulations are becoming tighter and any broker who funds overnight exposure of clients in derivatives can land themselves in trouble considering that SEBI is already concerned about leverage in the system. Other than that, it is not a safe practice from a risk management perspective. The latest exchange norms on margin reporting make it very difficult for brokers to fund traders' overnight derivative positions too. Even if margin reporting was not strict, the good brokers would definitely stay away from it, for sure!

Some brokers may offer you overnight positions with SPAN margin alone, but it is not possible anymore since NSE has merged SPAN + Exposure margins. If anyone is offering it, you must beware due to the reasons mentioned above. Please look for other qualities in a broker than just leverage. That's where the real value-add will be.

Hope this clarifies.