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I am talking about NSE (India) here.

Clearing corporations (CC) take 4 snapshots of client positions at random times during the day and see if there was sufficient margin available and, if there isn’t the minimum margin available for open positions, there will be a short margin penalty.

So, I want to keep calculating the margin requirement for my positions on every tick, in case available funds are less, I will try to square off some positions or may be add extra funds.

Can anyone please explain the formula for margin calculation or refer some document?

Also, I am talking here about NIFTY and BANKNIFTY options.

minou
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mirthybrink
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1 Answers1

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Option writing margin varies from broker to broker so you need to check with your broker to determine their minimums.

With margin, it's a good idea not to over extend yourself so that you have lots of buffer in case some/all of your short positions increase in value. Some even recommend not using margin at all.

Bob Baerker
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