What are the margin/fund requirements for an F&O trade?
The upfront margin requirements for F&O trades are as follows:
Futures trades (buy & sell) require upfront SPAN and exposure margins, as defined by the exchange.
Options:
A. Options buy trades do not mandate any margin requirements. However, 100% of the premium has to be maintained as cash in your trading account.
B. Options sell trades require upfront SPAN and exposure margins, as defined by the exchange. Here, the options premium received (as the seller) is credited to your trading account.
* Margin requirements are determined by the exchanges and may vary on a daily basis.
* Margin requirements for hedged open F&O positions are substantially lower as compared to unhedged open sell positions.
* Buying stock options will require a margin in the last week of monthly expiry.Still need help? Create Ticket
