Comment on Basics on Options Shorting/Writing

Nithin Kamath commented on 12 Aug 2015, 08:14 AM

When you short options the profits are limited but losses are unlimited. So the profit on one is never really proportional to the losses you make on another. But as long as they are the same, no need of more margin. But if markets start moving against you much more, the losses will tend to start getting bigger than profits, in which case you will have to transfer money.

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