Comment on Zerodha - Margin Policies

Venu Madhav commented on 19 May 2014, 11:17 AM

Hi Murtaza,

When you short an option, only margins get blocked. There is no “Mark-to-Market” that happens on a short option position. Assume you buy a Nifty call option at Rs.100, and if on that day it closes at Rs.120, you will NOT be given credit of the Rs.20. The credit is realised only if you sell and close the long option position. Similarly if you short an option and are in profits, such notional profits will no mark to market. Only realised profits reflect on your ledger for options. Mark to Market happens only for Future positions.

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