Options Trading

Is the separate Margin Blocked for Buy and sell Orders?

No, margin is blocked on the order, which attracts higher Margin out of the Buy or Sell order. If you have placed both a buy and sell order in the same contract Margin blocked would be the maximum of the two orders. Illustration As in the above illustration the sell order attracts a margin of (a) Rs 96000/-. If you place a Buy order in the same Contract OPT-ACC-30-May-2002-150-CE 3000 at Rs 20/- it would attract margin of (b) Rs 60,000/-. Margin blocked would be the higher of the two margins (a) or (b) i.e. Rs 96,000/-. Please note - Exchange has identified option contracts in either Deep Out of The Money (OTM) or Non Deep OTM for which Exchange has stipulated separate Exposure percentage (also known as Extreme loss margin percentage). Hence accordingly for Deep OTM or Non Deep OTM option contracts Initial Margin percentage and Minimum Margin percentage would be revised accordingly.