Comment on Basics on Options Shorting/Writing

Kaushik commented on 20 Jul 2016, 04:02 PM


When I try to short any option the initial margin ask price is very high and when the order gets executed, the margin blocked is very less. To give an example on today’s experience,

When I placed a short order of 4 lots (300 quantity) of Nifty JUL 8800 PE, as the order was in the queue yet to be executed on my price, I saw that the margin blocked was around 90K and later when the order got executed, the actual margin that was blocked was only around 29K.

Can you please explain this anomaly?

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