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.
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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
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 short selling?
Short selling is a trading strategy that involves borrowing and selling a security that you do not own, hoping to buy it back later at a lower price and make a profit. It is a way of trading with the anticipation on the decline of a security’s price. ...
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.