Options Trading Tutorial

which broker charges minimum margin for writing/selling options in india?

how is the margin charged for selling option contracts? plz dnt tell me tht it is mostly same as SPAN margin. coz out of money calls hav less margin than in the money and at the money calls. also, margin for sellin options differ frm broker to broker. so plz tell me which broker charges minimum margin for writing options.

Public Comments

1. www.5paise.com www.sharekhan.com
2. National Stock Exchange calculates the margins and all such data in real time and online. It sends the data files for debits / credits to the brokers directly. The brokers are supposed to collect / pay clients as per this data file. NSE doesn't allow any broker to deviate from this as it is the most important risk management tool. Of course few brokers may allow less margins solely depending on their relationship with some clients but it is a rare phenomenon now. Brokers do not assume risks as they are not allowed to and collect margins from the clients as per NSE files. Brokerage charges do differ from broker to broker. Few brokers charge minimum Rs.50/- per lot for options. I heard that few small brokers do charge even less than this amount. But one must select the broker depending on the services offered, your location etc than on brokerage charges.
3. depends on broker.