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.
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.