Comment on Basics on Options Shorting/Writing

Nithin Kamath commented on 04 Nov 2016, 10:12 PM

1. If the combined premium goes up over 300, that means you have started making losses. If the lot size is 100, if the combo goes to 350, it means you are making losses of Rs 5000. So yes, margin goes up when the premium goes up. It this goes up significantly more than 300, yeah broker can square off if you don’t have enough margin to cover.

2. When it goes lower, margin blocked will reduce, you will have more money let to trade/withdraw.

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