Comment on Zerodha - Margin Policies

Sukesh commented on 13 Apr 2014, 05:38 PM

Hello Nithin,

One more question. I’m observing that the margin requirement in Nifty F&O is constantly going up.

Earlier i was usually able to write a Nifty straddle (Selling/Shorting both Put & Call at the same strike price) for about 35k (After considering the proceeds i receive for selling the straddle). However now the requirement has come up to 50k.

Is this a temporary phenomenon due to increased volatility because of upcoming elections OR is it due to the fact that Nifty is trading at very high levels now?

Can you also please let me know the factors on which the margin requirement depends on?


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