HELLO SIR @nithin
What are the step to be secure in Possibility Shopping for.
Does choice shopping for Want margin.
If choice purchaser will get hidden margin or any kind of margin.– Easy methods to steer clear of that.
What are the distinction between MIS and NRML in Possibility Shopping for, does they want margin.
Easy methods to steer clear of all forms of penalty.
Easy methods to keep away from Margin in choice shopping for.
HOW TO STAY SAFE IN STOCK MARKET FROM ANY AND ALL KIND OF PENALTY.
Hello @ArohiMalhotra0099
ArohiMalhotra0099:
Does choice shopping for Want margin.
If one has sufficient money stability value choice premium, that ought to be sufficient for choice shopping for on the whole.
However, if one is buying and selling in inventory F&O, one wants to take care of further margins within the final week for ITM choices resulting from the potential of bodily supply.
assist.zerodha.com
What’s Zerodha’s coverage on the bodily settlement of fairness derivatives on…
What’s Zerodha’s coverage on the bodily settlement of fairness derivatives on expiry?
ArohiMalhotra0099:
What are the distinction between MIS and NRML in Possibility Shopping for, does they want margin.
No distinction as there isn’t a additional leverage for F&O now. Solely distinction is MIS is for day buying and selling the place one has to exit earlier than 3.25 pm and NRML product, one can carry in a single day as nicely.
Extra studying on Possibility shopping for and margin penalties on the whole:
assist.zerodha.com
What are margins and the way can margin shortfall happen?
What are margins and the way can margin shortfall happen?
Z-Join by Zerodha – 1 Jul 21
Possibility shopping for: The riskiest commerce on the market – Z-Join by Zerodha
Over my previous 20 years within the markets, I’ve interacted with many retail merchants, in varied capacities. And one factor I’ve seen that leads retail traders to persistently lose cash is choice shopping for. The primary motive for that is merchants normally…
Est. studying time: 14 minutes
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Means,
The conclusion is in “OPTION BUYING”(Nifty , Financial institution Nifty, Fin nifty) we no want margin, So if there no margin there no must pay penalty??Is that precisely???
However in expiry day( Nifty, Financial institution Nifty , FinNifty) we’ve got to exit or sq. off or promote the shopping for place earlier than 3:30 pm.In any other case penalty.???
Is something left that I forgot to say.???
So choice shopping for is restricted threat buying and selling due to no margin ???
Sir within the final publish you talked about that choice shopping for have leverage.
However now choice shopping for doesn’t have margin /levarge.
The leverage or Margin idea was in previous for choice shopping for.
Hello @ArohiMalhotra0099
ArohiMalhotra0099:
The conclusion is in “OPTION BUYING”(Nifty , Financial institution Nifty, Fin nifty) we no want margin, So if there no margin there no must pay penalty??Is that precisely???
ArohiMalhotra0099:
However now choice shopping for doesn’t have margin /levarge.
F&O by design is leveraged buying and selling. Theoretically talking, you’d require 50 (lot dimension) *19700 (CMP) = 985000 rs to commerce in Nifty. However as you’ll be able to commerce with lesser quantities (margin of 112k roughly for getting/promoting future and promoting choices) and far lesser in choices (equal to premium paid) – Theoretically talking, it’s a leveraged commerce.
In case you’ve bought an choice and if the market strikes towards your place massive time, you might have to herald funds to make good the losses.
Now coming to choice shopping for, you might be appropriate. The utmost loss is the premium paid so you’ll be able to say your capital is the utmost quantity you’ll be able to lose. This holds true for index choice shopping for as they’re cash-settled however for inventory choices that expire ITM, bodily supply is obligatory and that’s the place the idea of leverage comes into the image.
Z-Join by Zerodha – 3 Jan 22
Bodily supply of inventory F&O & their dangers – Z-Join by…
Replace: NSE has reintroduced Do Not Train Facility (DNE) in inventory choices from April 28, 2022. Bodily supply of inventory choices can doubtlessly result in systemic threat within the capital markets and pose a threat to merchants. However earlier than I clarify these…
Est. studying time: 9 minutes
ArohiMalhotra0099:
However in expiry day( Nifty, Financial institution Nifty , FinNifty) we’ve got to exit or sq. off or promote the shopping for place earlier than 3:30 pm.In any other case penalty.???
Test this out
assist.zerodha.com
What occurs if the choice contract just isn’t squared off on the expiry date?
What occurs if the choice contract just isn’t squared off on the expiry date?
Abstract
In brief, if you’re solely an choice purchaser, you needn’t fear about any margin penalties so long as you might be buying and selling in index choices and inventory choices that aren’t within the cash(ITM).
You have to be cautious about sustaining sufficient margins for inventory choices which might be ITM ranging from one week earlier than expiry as defined right here
Thanks for fixing my questions.
Apart from this.I need to do solely choice shopping for in Index(NIFTY, BANK NIFTY, FINNIFTY).So I don’t want to fret about ANY KIND OF margin penalty.
However in weekly expiry I’ve to shut/exit/sq. off/promote my commerce earlier than 3:30 or market shut…
Is that.?
If I neglect to promote/sq. off/exit/shut my commerce in expiry day and that was in ITM.THEN ONLY WE HAVE TO GIVE MARGIN PENALTY
In any other case there aren’t any margin penalty or any form of penalty in INDEX OPTION BUYING (NIFTY, BANK NIFTY, FINNIFTY).
IS THAT ?
Conclusion/ Inshort
Possibility Shopping for doesn’t want margin.If there aren’t any margin there no want to fret about penalty.
However be mindful we’ve got to exit earlier than market closes in weekly/month-to-month expiry day.
Sir,One factor extra I’ll purchase solely ITM BECAUSE OF LESS TIME DECAY .
IS THERE WILL BE ANY PROBLEM???
It signifies that you shouldn’t neglect to exit earlier than the market closesandeven in the event you neglect and the time of the market is over then the place can’t be ITM (when market closes within the cash) then solely penalty will likely be chargedandthere isn’t any downside whether it is OTM(when the market closes out of the cash or far).
Thanks for supporting me