Comment on Basics on Options Shorting/Writing

Ankit commented on 02 Jan 2017, 02:00 PM

Hi, I read another comment about margins somewhere but I’m not very clear.
So my questions are –
1. For margin requirement for FnO/currency/commodities, can 100% of the margin be given through stocks in demat (or pledged stocks)? Of course, the MTM has to be in cash I understand. If not, then what is the split between cash and stocks (or pledged stocks)? I understand there is a haircut associated with shares.
2. For option writing, in case I write and option of Rs. 100 and end of day, the option value is 110, then for the remaining Rs. 10, will it be counted as MTM loss and I should deposit Rs. 10xlot size or will it be deducted from the margin itself?
3. For option writing, how soon will the fund be available to me?
4. For margin through shares – do you still have the policy of making pledge or will it remain in my demat and I will get margin for trading in FnO without having to pledge?

Thanks.

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