Comment on Basics on Options Shorting/Writing

Nithin Kamath commented on 14 Jan 2014, 04:45 PM

Assuming you short an option at Rs 100, if this goes to Rs 150, you are technically sitting on a loss of Rs 50(Rs2500). What happens is that the margin required to write this option goes up by the same amount, so yes when you make a loss the margin goes up and you are required to bring in more margin for that.

Cheers,

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