Comment on Basics on Options Shorting/Writing

coolblr commented on 03 Mar 2014, 06:35 PM

@Nithin, NP and thanks for the response. Few more questions:

1. You mentioned in your reply that this is pledged with NSE, how long does it take to pledge and get the margin. And in case I want to unpledge, I close the required positions to free up the portion I want to unpledge and eventually sell and get it converted into cash, how long it takes to unpledge and sell it in the market and convert it into cash. Basically the turn around time for both – pledge/unpledge.

2. I have bought the MF’s (I understand the ETF’s which is mostly like the EQ segment) directly from the AMC or through the third party sellers (with no costs what so ever incurred by me, any entry/exit load will be charged, but apart from that there will be no charges), and the transaction into and out of the MF happens based on the closing NAV for that particular day, how does it work on the terminal? the CMP or the price at which it gets executed? If it is at the price it gets executed I feel it entirely depends on the volume of a particular MF on that particular day and there might be huge slippage in terms of spreads itself and affects the yield? Or my understanding of this is totally wrong, how the buy/sell happens on the terminal.


PS. More questions might follow 🙂

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