Comment on Zerodha - Margin Policies

Nithin Kamath commented on 02 Apr 2013, 02:56 PM


I understand what you are trying to say, but unfortunately exchanges don’t recognize such spreads. The issue for the exchange is once you have taken the position, what if you first square of the long puts? You will be left with short puts with unlimited risk and only 5k margin…??

Hence exchanges won’t let you trade with the margins that you are thinking.

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