Comment on Z5- Getting Started

Venu Madhav commented on 10 Sep 2015, 12:44 PM

When you write an option, theoretically you can make unlimited losses. Hence the margins that get blocked will not be always equal to the value of the premium. What if the premium went to 780 instead of 280? Then you’d need close to Rs.1.5 lacs to cover your positions. The margins shown on the Zerodha’s SPAN calculator is what is determined by the Exchanges.

You cannot write the option if you do not have 93000 in your account and if at the time of writing these options you had these funds, wrote the options and later made losses (because of option prices increasing), your position is liable to be squared off.

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