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Margin for required for Bank Nifty

CA Surya Sekar (CFO ) (1347 Points)

26 June 2022

How much margin is required for option writing in bank nifty ?

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Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 26 June 2022

It depends on various factors like whether it is without hedging, single position, ETF positions etc

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CA Rashmi Gandhi (Chartered Accountant) (86323 Points)
Replied 26 June 2022

Depends on your transactions.

Eswar Reddy S (CFO- at NHTF) (58270 Points)
Replied 26 June 2022

Current Bank Nifty : 33627/-

If you Buy 34000 call and sell the 35000 Call option then margin will be around 25k to 30k.

If it is naked position in Bank Nifty then margin will be above 1,20,000

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John Martin (24 Points)
Replied 05 November 2022

As an options buyer, you can simply look at the Bank Nifty option chain to get an idea of the premium you would have to pay to trade Bank Nifty options of different strike prices. However, when it comes to options selling, unlike option buying, where you pay a premium, in this case, you have to deposit a margin amount. The margin depends on the strike price of the options contract you wish to sell. However, more or less, it is similar to an equivalent Bank Nifty Futures contract. Furthermore, to get the precise margin figure, you can use a brokerage calculator by a broker like IIFL Securities. Lastly, you can implement hedging strategies to reduce the margin requirement.

For more information visit:-

https://www.indiainfoline.com/markets/derivatives/option-chain