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  #1  
Old 30th March 2009, 09:11 PM
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Default ICICI Direct Margin Requirement in Options



Hi,

I had given a Limit call for 2900 Put , 1 lot @ 50/- on Saturday.

The call was not executed today. However, I got a margin requirement mail from ICICI Direct.

Can you please explain, that as far as put calls buying is concerned ( not writing an option ) we are just buying that option at a premium, which we may or may not execute.

Then do we at all need to provide further margin and MTM related margins in this case ??
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  #2  
Old 2nd April 2009, 09:37 PM
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Quote:
Originally Posted by Prudent_Investor View Post
I had given a Limit call for 2900 Put.
If you meant you had placed a buy order for 2900 Put...

Buy orders irrespective of whether it is a Call or a put, is margined only to the extent of the Premium payable on the order. - ICICI Drect FAQ

The margin requirement mail did not have the needed details?

Alchemist,

Additional Margin Requirements and MTM loop etc don't come into play until you have an open position... right ?
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Old 17th April 2009, 11:51 PM
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Quote:
Originally Posted by panks_07 View Post
Alchemist,

Additional Margin Requirements and MTM loop etc don't come into play until you have an open position... right ?
I have bought the 2900 put, but my question is I have already paid a premium to buy the option of selling NIFTY at 2900 on April 29th, 2009. So why would be there a requirement for MTM and Margin .

I understand open positions in futures attract MTM and Margins but why in options ?
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Old 18th April 2009, 10:06 AM
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As long as your order is active, you have to maintain a margin equal to the order value.

You don't have to maintain any margin if your order doesn't get executed and is canceled.

(Orders are canceled at the end of the day).

I don't use ICICIDirect to trade options and don't really know how they calculate margins.

Write to the support at ICICIDirect and ask them why they are asking for a margin when the order no longer exists.
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