Comment on Basics on Options Shorting/Writing

xuv 500 commented on 13 Jan 2014, 05:00 PM

Margin is marked to market daily, which means that if there is a loss you are asked to bring in those funds to your trading account by end of the day.- Extract from article.
I have query here. Suppose i write Nifty jan14 6500 CE, i am getting values- Span 9300+ Exposure 9400= total 18942
1. if i write above CE using MIS, what margin will be required ? Is it only Span=9300 ?

2. If i do short it for positional. I wrote it at 7 and today close it’s quoting at 13. Practically i am in loss.Theoritically i will be in loss if nifty goes above 6500. So for daily MTM, i will have to provide if and only if nifty goes above 6500 ?

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