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How much money is required to buy/sell options?

Buying Options:
When you buy an option, you just pay the premium upfront (plus brokerage and taxes).
For example: If the premium is ₹10 and lot size is 500, you pay ₹5,000 (10 × 500) to buy that option.

Selling (Writing) Options:
Here’s where margin comes in since your risk can be very high (sometimes unlimited).
You’ll need to keep margin money in your account, which is a percentage of the contract value.

Key Points:

  • Buying is cheaper upfront (limited to the premium you pay).
  • Selling is margin-heavy because of the risk.

Margins vary by strike price, volatility, and broker. Always check the margin calculator before placing an order.

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