How do I respond to an increased margin requirement?
Should the margin requirement rise, it becomes imperative for investors to allocate additional funds for their open positions. Failure to do so may result in the position being squared off.
When trading using collateral margins from pledged holdings, you are required to maintain at least 50% of the margin requirement in cash or cash-equivalent instruments. This policy ensures compliance with industry regulations and promotes financial ...
For buying either calls or puts, the margin requirement is equivalent to the premium. Margin for buying options = Premium x Total Quantity The option seller, facing a higher risk, has an increased margin requirement. The exchange determines this ...
When you sell options, you receive premium which will be used when placing an options buy order. If you have received a premium and you try to place a new options buy order, the required margin will show as zero if it's less than the premium you ...
This rejection message occurs when the available balance in your account is insufficient to meet the peak margin requirements. This rule is primarily enforced when you attempt to buy back a sold scrip using the Invest or Cash and Carry (CNC) option. ...
When dealing with hedge positions, understanding the margin requirements is crucial for efficient trade execution and risk management. Here's a detailed guide on how to determine the margin for hedge positions: Suppose you have selected the following ...