HELP & SUPPORT

Options Trading on Punch

Margin requirement for F&O trading
How much money is required for buying and selling order?

How much money is required for buying and selling order?

The amount needed depends on your current position in the underlying:


For buying an option: Calculate as quantity * premium.

For selling an option: Calculate as SPAN + Exposure + Additional margin required by the exchange 

Regulatory charges and brokerage will also be required upfront.

 

How is margin for F&O calculated?
  • For buying options: The premium amount + Any other delivery margin as charged before physical settlement.
  • For Shorting options and for Futures: Span + Exposure + Delivery margin charged during physical settlement + Any other additional margin as levied by the exchange.

  • User can also get hedge margin benefit as per SPAN calculation mandated by the exchange.

  • Punch may, at its discretion, levy additional margin over and above the margins levied by the exchange from time to time, to cover any additional risk.
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