Comment on Zerodha - Margin Policies

Nithin Kamath commented on 05 Apr 2014, 07:30 PM

Nithy,

In option writing,
When you make a loss, margin required increases, and when you make a profit margin required reduces. So if price is 120 and then today closes at 110, the margin required will reduce.

Margin required is reduced/increased based on the price at which you would have shorted the option and not based on previous day close

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