Comment on Zerodha - Margin Policies

Nithin Kamath commented on 28 Apr 2014, 08:16 PM

Sukesh, when an option position goes against you the premium goes up which gets credited to you, but in essence this is a loss. So the margin blocked has to go up atleast by how much you have lost the premium, but the deeper the loss gets the bigger your position becomes and hence the margin required to hold this position goes up more than how much the loss you are incurring on the option position.

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