What is the margin required to sell Bank Nifty options?

Currently, the upfront margin required is 75 per cent of the total margin. In other words, if a trader wants to buy a Nifty contract worth Rs 10 lakh, the margin at 20 per cent would be around Rs 2 lakh. Until August 30, the upfront margin was only Rs 1.75 lakh.

What is cost of 1 lot of bank Nifty?

For example, banknifty 23600 call option is trading at 200 rupees so to buy 1 lot of banknifty 23600 call option, traders have to pay = banknifty option premium 200 rupees * 40 quantity lot size = 8000 rupees.

Can I short sell options?

Can I Short Sell Put Options? A put option allows the contract holder the right, but not the obligation, to sell the underlying asset at a predetermined price by a specific time. This includes the ability to short-sell the put option as well.

How option selling price is calculated?

The model’s formula is derived by multiplying the stock price by the cumulative standard normal probability distribution function. Thereafter, the net present value (NPV) of the strike price multiplied by the cumulative standard normal distribution is subtracted from the resulting value of the previous calculation.

How is options profit calculated?

To calculate profits or losses on a call option use the following simple formula: Call Option Profit/Loss = Stock Price at Expiration – Breakeven Point.

What happens if I sell a nifty put option?

In case of a put buyer, a seller pockets the entire premium if the Nifty expires above or at the strike sold. He loses if the Nifty closes below the strike sold minus premium received. For e.g., he sells a 10,700 put expiring January 31 at Rs 100 a share premium and Nifty closes at 10,800.

How much money do I need to sell Nifty options?

For one lot of nifty option selling, you need around Rs 50000 ( exact amount depends on the nifty value and the prevailing market conditions at the time of option selling ). Interesting is the fact that you want to sell an option and asking about the money required for selling.

What is the margin for intraday trading in NIFTY options?

For writing options on expiry day, intraday margins are as low as Rs.80,000 per lot on nifty options. This margin is for naked option selling, but if we hedge positions then the same margin can go down to as low as Rs.18,000 per lot. Live to trade another day. Always follow a proper risk management strategy.

What is NSE’s Nifty future lot size?

As part of a periodic review, the National Stock Exchange (NSE) announces a revision in the market lot of derivatives contracts on some of its key indices. The nifty future current lot size is 75 quantities. And the nifty future current trading price is 9800.

How much capital is required to trade in NIFTY future?

Though capital requirement will be as low as 8\% for the index such as Bank nifty future and Nifty future. Margin actually varies from broker to broker. While most of the stockbrokers will ask you Rs.1,55,000 for 1 lot (75 shares) to open a positional trade in nifty future.