if i sell naked put... what is the general rule for margin ?
I know they will keep the premium and add that to my credit.
So for instance if I sell a put and get credit ( premium )
and this is naked short put .....
what is the required margin... IB, or SAXO
2 senarios
if it is otm now
and when it gets itm
second part of the Q is
what if i am am covered... does it reduce the margin requirment...
because to cover the sold put, i need to go short in underlaying,
so am I going to be asked to deposit more margin for short of the underlaying, and the sold put less the premium.. ?
I know they will keep the premium and add that to my credit.
So for instance if I sell a put and get credit ( premium )
and this is naked short put .....
what is the required margin... IB, or SAXO
2 senarios
if it is otm now
and when it gets itm
second part of the Q is
what if i am am covered... does it reduce the margin requirment...
because to cover the sold put, i need to go short in underlaying,
so am I going to be asked to deposit more margin for short of the underlaying, and the sold put less the premium.. ?