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How is Margin calculated on Sell orders in Options?

April 26, 2017calculated margin Options orders sell

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How is Margin calculated on Sell orders in Options?

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Since the seller of the option is exposed to a higher risk than the buyer of an option, the margin calculation is slightly different as compared to Buy orders. ICICIdirect would specify a Margin percentage as it feels is commensurate with the volatility and the current position of the Stock or the Index. This percentage would be applied to the Current Market Price (CMP) of the shares/Index in the Underlying Market.