My collateral margin is never used for writing options – Zerodha – Trading Q&A by Zerodha

Hi,

When I write options, all my cash is used to take the position. My collateral margin (received by pledging my stocks) is never used. The SEBI rule says that only 50% should come in from cash.

I raised a ticket with Zerodha, and the guy says that they blocked all my cash margin just because I have cash in my account. Then why does this 50% rule even exist?

So they allude that as long as I have cash, they will use it. Only when I don’t have cash, they will use the collateral margin. I don’t think the SEBI rule was meant this way.

Any comments from option sellers on your experience?