How is the margin calculated for buying options?
To buy either calls or puts, the margin requirement is only to the extent of the premium.
Margin for buying options = Premium * Total Quantity
How is the margin calculated for selling options?
Since the seller of the option is exposed to a greater risk than the buyer, the margin requirement is greater for the seller. The exchange stipulates margin requirements based on the volatility of the underlying asset. Check our Margin Calculator.
Can I buy and sell Far OTM Options in FYERS?
Yes, We provide you a wider strike price range for options trading and you can Buy/Sell Far Out of The Money (OTM) Options Contracts. Options Buying Index Options – You can Buy OTM Options up to a range of 20% from the LTP. Stock Options – You can ...
Can I use the Options Premium received to place new orders in F&O?
Yes, Options premium received on selling options contracts can be used to place new option buy orders. For Example, Mr. X shorted 1 lot of Nifty 18000PE trading at ₹100. The premium of ₹5000 (50 Qty*100) will be credited to his account on the same ...
What is options spread?
An options spread is when the investor buys as well as sells options of the same underlying security but of different strike prices and/or different expiries.
How much margin would be blocked for futures trading?
Margin requirement differs from one scrip to another. You can check the margin requirements in our Margin Calculator.