Home
Services Offered
Payment Details
My Services
Contact Us
Market Heatmap
Charts
Charts (Premium)
Chart Watch
JCharts (EOD)
JCharts(EOD-COMM)
HCharts (EOD)
HCharts (EOD-COMM)
Forum
Stock Lists
Screener (EOD)
Screener (EOD-Comm)
Breadth Charts
Calculators
Education
Links
FAQs
Search
Advertise Here
Charts (Old)
Login Form





Lost Password?
No account yet? Register
  iCharts Discussions

 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 

Option Spread Trades Margin

 
Post new topic   Reply to topic    iCharts Discussions Forum Index -> TradeJini - Get Free Realtime Charts
View previous topic :: View next topic  
Author Option Spread Trades Margin
Dani
White Belt
White Belt


Joined: 01 Nov 2012
Posts: 1

Post: #1   PostPosted: Wed Mar 05, 2014 5:42 am    Post subject: Option Spread Trades Margin Reply with quote

If you buy and sell calls or puts as a spread then the exposure risk is zero. The maximum loss or gain is limited to the spread difference. In this scenario, how Tradejini calculates margins?
Back to top
View user's profile Send private message
TradeJini
White Belt
White Belt


Joined: 02 Jan 2014
Posts: 37

Post: #2   PostPosted: Wed Mar 05, 2014 11:07 am    Post subject: Options Spread Margin Reply with quote

Please provide an exact scenario to illustrate the margin requirement as there are varied combinations possible.

Happy Trading artist
Back to top
View user's profile Send private message
Abhi
White Belt
White Belt


Joined: 22 Oct 2011
Posts: 20

Post: #3   PostPosted: Sat Apr 12, 2014 4:39 pm    Post subject: Option Spread Trades Margin Reply with quote

TradeJini,

I want to Buy Banknifty Apr'14 future and sale Banknifty May'14 future SIMULTANEOUSLY. In that case what is the margin requirement for this TOTAL position? One of my friend told me that the margin would be roughly 7K for the TOTAL position.
Back to top
View user's profile Send private message
Hydrogen
White Belt
White Belt


Joined: 18 Feb 2014
Posts: 87

Post: #4   PostPosted: Tue Apr 15, 2014 10:46 am    Post subject: Reply with quote

I would also like to add my query in this section.
e.g. I want to create a Vertical Spread in Option. Lets take an examples.

Buy NIFTY 6700 PE 38.3
Sell NIFTY 6500 PE 6.8

Calculation Part.

38.3 * 50 = 1915 (This amount will be debited from my trading Account)
6.8 * 50 = 340 (This amount will be credited to my Account)

Net Investment = 1915 - 340 = 1575.

Now I want to know since I am selling NIFTY Option. How much Margin will be
blocked by my broker, for creating above spread.
Back to top
View user's profile Send private message
TradeJini
White Belt
White Belt


Joined: 02 Jan 2014
Posts: 37

Post: #5   PostPosted: Tue Apr 15, 2014 6:03 pm    Post subject: Re: Option Spread Trades Margin Reply with quote

In the case of the Bank nifty illustration, the margin required for the month -spread position is approx 24-26k at current date

Happy trading
Tradejini Team


Abhi wrote:
TradeJini,

I want to Buy Banknifty Apr'14 future and sale Banknifty May'14 future SIMULTANEOUSLY. In that case what is the margin requirement for this TOTAL position? One of my friend told me that the margin would be roughly 7K for the TOTAL position.
Back to top
View user's profile Send private message
TradeJini
White Belt
White Belt


Joined: 02 Jan 2014
Posts: 37

Post: #6   PostPosted: Tue Apr 15, 2014 6:05 pm    Post subject: Reply with quote

For buying an option you need to pay the full option premium
For selling an option you have to maintain span and exposure margin as per the exchange span calculator

In the illustration provided, the Span margin required will be 8-9K. Including the exposure margin the total margin (span+ Exposure margin) required will be 18-20K

Happy Trading
Tradejini Team

Hydrogen wrote:
I would also like to add my query in this section.
e.g. I want to create a Vertical Spread in Option. Lets take an examples.

Buy NIFTY 6700 PE 38.3
Sell NIFTY 6500 PE 6.8

Calculation Part.

38.3 * 50 = 1915 (This amount will be debited from my trading Account)
6.8 * 50 = 340 (This amount will be credited to my Account)

Net Investment = 1915 - 340 = 1575.

Now I want to know since I am selling NIFTY Option. How much Margin will be
blocked by my broker, for creating above spread.
Smile
Back to top
View user's profile Send private message
Hydrogen
White Belt
White Belt


Joined: 18 Feb 2014
Posts: 87

Post: #7   PostPosted: Wed Apr 16, 2014 11:01 am    Post subject: Reply with quote

Thanks TradeJini for your reply
Back to top
View user's profile Send private message
pattiboy02
White Belt
White Belt


Joined: 16 Mar 2009
Posts: 220

Post: #8   PostPosted: Mon Jul 07, 2014 2:44 pm    Post subject: Reply with quote

TradeJini,
I'm also want to know about margin required in Nifty Option Selling:-
e.g.

Sell NIFTY 7800 PE 152
Sell NIFTY 7800 CE 152

How much Net Margin will be used initially to put this trade (forgot MTM loss/profit) if my trading account has credit of Rs 100 k.

Regards
pattiboy02
Back to top
View user's profile Send private message
welgro
Brown Belt
Brown Belt


Joined: 24 Sep 2012
Posts: 1773

Post: #9   PostPosted: Mon Jul 07, 2014 4:40 pm    Post subject: Reply with quote

pattiboy02 wrote:
TradeJini,
I'm also want to know about margin required in Nifty Option Selling:-
e.g.

Sell NIFTY 7800 PE 152
Sell NIFTY 7800 CE 152

How much Net Margin will be used initially to put this trade (forgot MTM loss/profit) if my trading account has credit of Rs 100 k.

Regards
pattiboy02


approx margin 43K
Back to top
View user's profile Send private message
pattiboy02
White Belt
White Belt


Joined: 16 Mar 2009
Posts: 220

Post: #10   PostPosted: Tue Jul 08, 2014 7:03 am    Post subject: Reply with quote

Dear welgro

From which software you have showing this screenshot.

regards
pattiboy02

welgro wrote:
pattiboy02 wrote:
TradeJini,
I'm also want to know about margin required in Nifty Option Selling:-
e.g.

Sell NIFTY 7800 PE 152
Sell NIFTY 7800 CE 152

How much Net Margin will be used initially to put this trade (forgot MTM loss/profit) if my trading account has credit of Rs 100 k.

Regards
pattiboy02


approx margin 43K
Back to top
View user's profile Send private message
welgro
Brown Belt
Brown Belt


Joined: 24 Sep 2012
Posts: 1773

Post: #11   PostPosted: Tue Jul 08, 2014 7:09 am    Post subject: Reply with quote

pattiboy02 wrote:
Dear welgro

From which software you have showing this screenshot.

regards
pattiboy02

welgro wrote:
pattiboy02 wrote:
TradeJini,
I'm also want to know about margin required in Nifty Option Selling:-
e.g.

Sell NIFTY 7800 PE 152
Sell NIFTY 7800 CE 152

How much Net Margin will be used initially to put this trade (forgot MTM loss/profit) if my trading account has credit of Rs 100 k.

Regards
pattiboy02


approx margin 43K











Back to top
View user's profile Send private message
pattiboy02
White Belt
White Belt


Joined: 16 Mar 2009
Posts: 220

Post: #12   PostPosted: Tue Jul 08, 2014 7:12 am    Post subject: Reply with quote

thanks welgro

welgro wrote:
pattiboy02 wrote:
Dear welgro

From which software you have showing this screenshot.

regards
pattiboy02

welgro wrote:
pattiboy02 wrote:
TradeJini,
I'm also want to know about margin required in Nifty Option Selling:-
e.g.

Sell NIFTY 7800 PE 152
Sell NIFTY 7800 CE 152

How much Net Margin will be used initially to put this trade (forgot MTM loss/profit) if my trading account has credit of Rs 100 k.

Regards
pattiboy02


approx margin 43K











Back to top
View user's profile Send private message
venkkatshiv
White Belt
White Belt


Joined: 16 May 2008
Posts: 90

Post: #13   PostPosted: Tue Jul 08, 2014 10:29 am    Post subject: Reply with quote

pattiboy02 wrote:
thanks welgro

welgro wrote:
pattiboy02 wrote:
Dear welgro

From which software you have showing this screenshot.

regards
pattiboy02

welgro wrote:
pattiboy02 wrote:
TradeJini,
I'm also want to know about margin required in Nifty Option Selling:-
e.g.

Sell NIFTY 7800 PE 152
Sell NIFTY 7800 CE 152

How much Net Margin will be used initially to put this trade (forgot MTM loss/profit) if my trading account has credit of Rs 100 k.

Regards
pattiboy02


approx margin 43K











HELLO, TRADERJI, I use Reliance money for my trading it gives in option calculations the values of gama veda ....... something like that how to use those values and what is the purpose of them and how to valuevate of entry and exits. please explain .very confusing .Thank you, Take your own time but pl.reply. sorry.
Back to top
View user's profile Send private message
welgro
Brown Belt
Brown Belt


Joined: 24 Sep 2012
Posts: 1773

Post: #14   PostPosted: Tue Jul 08, 2014 11:50 am    Post subject: Reply with quote

venkkatshiv wrote:
HELLO, TRADERJI, I use Reliance money for my trading it gives in option calculations the values of gama veda ....... something like that how to use those values and what is the purpose of them and how to valuevate of entry and exits. please explain .very confusing .Thank you, Take your own time but pl.reply. sorry.


Dear venkkatshiv,

Read page : Greeks and option pricing behaviour.............................24-28

You will better understand about Option Greeks
Back to top
View user's profile Send private message
Display posts from previous:   
Post new topic   Reply to topic    iCharts Discussions Forum Index -> TradeJini - Get Free Realtime Charts All times are GMT + 5.5 Hours
Page 1 of 1

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
You cannot attach files in this forum
You cannot download files in this forum


Powered by phpBB © 2001, 2005 phpBB Group

@MEMBER OF PROJECT HONEY POT
Spam Harvester Protection Network
provided by Unspam