Comment on Basics on Options Shorting/Writing
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,