Angel Broking Option Selling Margin

Margin

Angel Broking is gaining fame for options trading due to its highly advanced trading app and at the same time, the option chain provided to the user. But have you ever wondered what the Angel Broking Option Selling margin is?

If not then here is the complete information on the option margin that is required to maintain in your trading account to execute the trade.

Margin Required for Option Selling in Angel Broking

The option seller majorly enters the market to earn profits from the premium that he/she receives. The option seller in the case of a call option is bearish and in the case of a put option is bullish.

Thinking why option selling requires margin.

Well, this is because of the risk involved. So one hand where the broker offers the leverage of 2x to 3x for option selling on the other hand you need to maintain a specific margin to reap the benefit of leverage facility in options.

The option seller defines its profit right in the beginning by selling the option at the particular strike price and earning the premium for the same.

But when it comes to losses it is indefinite and hence to cope up with the loss the stockbroker asks to maintain a specific margin amount in the respective trading account.

Again the margin depends upon the strike price at which you decided to sell the option.

In case you choose the OTM strike price, the premium is comparatively less and hence the seller needs to spend less in the margin.

Other than this, selling the option at ATM and ITM strike price gives you the chance to earn more premium, and hence it is required to maintain more margin in your trading account.

Again in the margin, there are two different types: Exposure and Span Margin.

Here span margin is the minimum margin blocked in your trading account for Futures and Options writing, on the other hand, the exposure margin is the blocked margin above the value of Span Margin in order to curb the MTM losses.

You can easily find the value of both the margin using the Angel Broking margin calculator by clicking here.


How is Option Selling Margin is Calculated in Angel Broking?

To calculate the margin value while doing option selling in Angel Broking follow the steps given below:

  • Select your strike price by doing the margin analysis.
  • Check the OI against the strike price and the LTP value.
  • Using this data, you would be able to pick the strike price.
  • Enter the information in the margin calculator.
  • Choose Call or Put option or both.
  • Click on Calculate.
  • Option margin: Span and Exposure margin value will be displayed on the screen.

How to Do Option Trading in Angel Broking?

Now that you know what is the margin that is required and the charges associated with option selling in Angel Broking, let us have a look at how you can sell options in Angel Broking.

  • Log in to your Angel Broking mobile app using the login credentials.
  • Once you have logged in, you can search for your scrip in the search bar.
  • On doing this, you can now analyze the option chain. On the left-hand side are the call options and on the right-hand side are the put options.
  • The strike prices are in the center. Select the strike price of your choice.
  • A window will pop up, click on the sell option.
  • In the next window, enter the lot, price, and order type. Click on ‘place order’ and your order will be easily placed.
  • By following these simple steps and using the right option strategies, you can easily sell options in Angel Broking.

Angel Broking Option Selling Brokerage

Till yet we learned about the Angel Broking option selling margin, but apart from the margin money you also need to pay the brokerage fees to execute the trade in options.

Being a hybrid stockbroker, Angel Broking charges the minimum fees of 0.25% or ₹20 per trade, whichever is lower.

 


Conclusion

Options trading is gaining popularity, and with that option selling as well. There is no doubt that option selling requires more capital, but if done the right way, it can reap great profits.

Know the option selling margin in Angel Broking and start trading options using its advanced trading app.

To reap more benefits of trade with the renowned stockbroker, open a demat account online for FREE!

Open Free Demat Account
Enter basic details here and a Callback will be arranged for You!

More Angel Broking

Add a Comment

Your email address will not be published. Required fields are marked *

two × 5 =