Comment on Basics on Options Shorting/Writing

Jinesh commented on 04 Sep 2016, 12:37 PM

Thanks for your reply.
1) Went through your post and other linked discussion.

So my understanding is 50% margin needs to come from cash and rest can be collateral.
-And interest is charged on shortfall of cash margin. If 50% cash (or liquid bees) is maintained. No interest charges.
-And on collateral only charges are of pledging and un-pledging, which in zeroadha is Rs.60 per script.

Am I correct ? Am I missing any other charges.

2) If , I have 10K cash and 40K collateral.

For overnight, option writing position with 50K margin need.

I will be charged interest on Rs.15K.

Please correct, if I am wrong.

3) Other Brokerage firm with Rs.10K cash and Rs.40K collateral.

has charged interest on entire Rs. 40K.

and even if it is Rs.25K cash and Rs.25K collateral,

they have charged interest on Rs.25K (collateral).

Kindly let me know, if it is as per regulation ?

Regards,
Jinesh

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