Why am I asked to bring margins when I have bought stock options?

For long In the Money (ITM) options, the exchange requires physical delivery margins to be maintained starting from four days before expiry (E-4).
  • The margin requirement changes daily over the four days.
  • It is charged as a percentage of applicable margins: VaR + ELM + Ad hoc.
  • Margins must be maintained at the beginning of the day (BOD).

Applicable Margin
E-4 (Friday BOD)
10% of VaR + ELM +Ad hoc margins
E-3 (Monday BOD)
25% of VaR + ELM +Ad hoc margins
E-2 (Tuesday BOD)
45% of VaR + ELM +Ad hoc margins
E-1 (Wednesday BOD)
70% VaR + ELM +Ad hoc margins

At Geojit, we have additional margin requirements for the last day (E-1, Wednesday) and the expiry day (E, Thursday). We require 50% of the contract value (inclusive of exchange stipulated margins) to be maintained.

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