Comment on Basics on Options Shorting/Writing

Nithin Kamath commented on 07 Mar 2015, 02:43 PM

Dipesh, SPAN is the minimum that you need to have in your trading account to carry forward the position overnight. If the SPAN is not there, exchange puts a penalty. We ask for SPAN+exposure for overnight positions. If the margin drops below the minimum SPAN, you need to transfer more funds to ensure the positions don’t get squared off between 3 to 3.30pm. No, we don’t usually call before squaring off the positions.

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