In the event that the margin requirement is increased, the investor will need to bring in additional funds towards the open position, failing which the position will be squared off.
Minimum margin is the margin amount that the investor should have allocated towards the open positions. If the minimum margin level is breached, the system will automatically block further funds. Incase investor does not have sufficient funds in ...
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.