Comment on Zerodha F&O margin Calculator

Matti commented on 02 May 2018, 05:16 PM

Hey Vineet,

1. You’re trading IRB 240 CE. The spot is at 270, which means you’re shorting an In The Money call. You’re betting that IRB will fall by 30 points by the end of the month, i.e., 11%!. Hence the higher margin requirements.
2. & 3. You get the premium credit on T+1. If the call goes against you, i.e., if the premium rises, margins are deducted MTM. The settlement happens on the basis of the premium, not the spot value.
4. No, you’ll have to wait for expiry or find a seller to buy back from mid-month.

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