Comment on Basics on Options Shorting/Writing

Nithin Kamath commented on 17 Jun 2014, 09:58 AM

Penalty is around 1% of the margin which is short than minimum required on a daily basis. It is pretty high, and it is just not about the quantum of penalty, this is considered being uncompliant.

Long option value is not credited until you have exited, and even when you exit it gets credited only T+1 day, so no can’t be taken.

Yes you can pledge your stocks, and get a margin after haircut. This comes with no interest, and you can use it to trade F&O positions. You just need to maintain some cash for any MTM obligations.

Unlike other brokerages, when you pledge with us, we directly pledge with NSE and don’t take it on our books and give you a loan at an interest (another advantage of trading @ Zerodha 🙂 ). So there is no cost for the collateral margin that will be provided on your stocks.

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