Comment on Cover Orders - For Higher Leverage

Zerodha commented on 16 Apr 2013, 08:01 AM

Hi Deep,

1) Shorting/Writing a put implies selling the put first and then buying it back later.. To sell you will have to use F2 to open the sell order window.

2) Yes, you will get margin facility if you are writing options for Intraday(using MIS product code), However note that all MIS positions will get squared off at the end of the day. If you wish to carry forward the option position, you will need to sell it with product code as NRML for which you will require Exchange specified margins. To know the margin requirement for writing options, pleae use the SPAN margin tool available on our software. To learn how to use the tool please go through: http://www.zerodha.com/z-connect/blog/2012/10/span-calculator

3) If you choose to square it off, you will have to place a buy order for the same option you have shorted or you can square it off at the market price from F11 (Admin position window) by selecting the position and clicking on Square off button present at the bottom right corner.

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