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The Minimum Amount Required for Options Trading in India!

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Shweta22
The Minimum Amount Required for Options Trading in India!

The following is the minimum amount required for options trading in India: Any trader's instinct is to find the right trading opportunities at the right time, which will allow him to deploy capital at the right place and generate the highest return on investment.

The amount of capital required to trade in the cash market is generally equal to the number of shares multiplied by the per-share value. If the share price per share of Reliance Industries is Rs. 2500 and you want to buy 100 shares of the same company, the total capital required is = 2500*100 = Rs. 2,50,000/-. And if you were to buy shares for intraday trading, you could get 5x leverage, which means that with a capital of 100 shares, you could express your views by purchasing 500 shares. However, that is still very high because it requires a capital of Rs. 50,000 (20% of the full value) and you must square off your positions on the same day.

But, what if there was a way to express your opinions on any company's stock while gaining massive leverage? That would be fantastic, wouldn't it? This is where derivatives trading comes into play.

Derivatives are tradable financial instruments whose value is determined by the underlying asset's value. The two most commonly traded derivative instruments are futures and options.

In this article, we'll stick to options trading. Also discussed is the minimum amount required for Options Trading in India. We will discuss the required margin from both the buyers' and sellers' perspectives. Read more on: The following is the minimum amount required for options trading in India

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