Comment on Basics on Options Shorting/Writing

yashjhaveri1 commented on 16 Jun 2014, 09:12 PM

Hi Nithin!

In Continuation with Harli’s question,
Can you please let us know what is the penalty that would be levied by the exchange
(in % or absolute terms) , Also would a broker charge interest on Dr margin Balances?

Can a broker provide additional margin by taking collateral of the Long Option (which has gained in value) to offset the margin required by the Short Option position.

Lastly, incase i have an equity position in RIL (which is my long term investment),
Can i use this equity position as collateral & make any trade to earn a Risk Free rate of interest.
(what is the interest you charge for loan against collateral of equity shares?)

thanks!

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