Margin & Leverage in Options
Options provide high leverage—you can control large positions with a small investment. However, selling options requires margin, as risk is theoretically unlimited (in case of uncovered calls).
Role Risk Profile Margin Required
Option Buyer Limited Risk (Premium) No margin needed
Option Seller Unlimited/Large Risk Margin Required
Settlement & Expiry
Options in India are cash settled (not physically delivered), and they expire weekly or monthly, usually on Thursday.
Types of expiry:
Weekly Expiry: Mostly for indices like Nifty, Bank Nifty.
Monthly Expiry: For stocks and some indices.
If you don’t square off your position before expiry:
In-the-money (ITM): Auto exercised.
Out-of-the-money (OTM): Expires worthless.
Options provide high leverage—you can control large positions with a small investment. However, selling options requires margin, as risk is theoretically unlimited (in case of uncovered calls).
Role Risk Profile Margin Required
Option Buyer Limited Risk (Premium) No margin needed
Option Seller Unlimited/Large Risk Margin Required
Settlement & Expiry
Options in India are cash settled (not physically delivered), and they expire weekly or monthly, usually on Thursday.
Types of expiry:
Weekly Expiry: Mostly for indices like Nifty, Bank Nifty.
Monthly Expiry: For stocks and some indices.
If you don’t square off your position before expiry:
In-the-money (ITM): Auto exercised.
Out-of-the-money (OTM): Expires worthless.
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Hello Everyone! 👋
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Feel free to ask any questions. I'm here to help!
Details:
Contact : +91 7678446896
Email: skytradingmod@gmail.com
WhatsApp: wa.me/7678446896
Publikasi terkait
Pernyataan Penyangkalan
Informasi dan publikasi tidak dimaksudkan untuk menjadi, dan bukan merupakan saran keuangan, investasi, perdagangan, atau rekomendasi lainnya yang diberikan atau didukung oleh TradingView. Baca selengkapnya di Persyaratan Penggunaan.