Comment on Zerodha - Margin Policies

Nithin Kamath commented on 21 Oct 2013, 06:44 AM

Hey Risk,

The option margin system in India works very differently compared to the developed markets.

When you sell 6500 calls and buy 6600 calls, the risk is reduced and hence the margin required to take this position also reduces, but not to the extent u r expecting.

If you want to naked short 6500 calls Nov margin required is 21200 and to buy 6600 another 1500. If you take both the positions together the margin required is around 19700, so around 15% margin benefit.

So the example you have given, you can take position with 2 lots.

You can use our SPAN calculator for the same.

For IPAD you can use Z5, our HTML5 platform.

View the full comment thread »