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How is margin required for F&O calculated?

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  1. Buying Options: Premium amount + Delivery margin (if applicable) before physical settlement.
  2. Shorting Options and Futures: Span margin + Exposure margin + Delivery margin during physical settlement  + Any other additional margin as levied by the exchange / Groww.
  3. Physical Settlement Margins: For positions requiring physical settlement (delivery of shares for Stock Options & Futures):
    • T-4 (4 days before expiry): 10%
    • T-3: 25%
    • T-2: 45%
    • T-1: 70%
    • T Day (Expiry Day): 100%
Note: Index Options are settled financially, but Stock Options & Futures require physical settlement. Ensure sufficient margin is available a day before expiry to avoid penalties or position closure.

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