The seller of an option is liable to pay higher of SPAN or Short Option Minimum Margin (SOM)
as specified by exchange from time to time and the Net option value (NOV) of the options
open position. Further, minimum ELM of 1% would be levied on short option positions.

SOMM is minimum margin applicable to sellers of options. The SOMM margin percentage is specified by exchange from time to time.

The buyer of an option is liable to pay only the premium amount.

Margins are portfolio based on margining model, i.e. Standard Portfolio Analysis of Risk (SPAN) system. This will take an integrated view of the risk involved in the portfolio of each
individual client comprising of his positions in all the derivatives contract traded.

Due Date Rate (Final Settlement Price) of the Options contract shall be determined as per the provisions mentioned in the respective contract specifications.

The trading period and session would be from Mondays to Fridays between 09.00 a.m. to 11.30 / 11.55 p.m.

? Regular lot order
? Stop loss order
? Immediate or cancel
? Day
? End of session
? Good till cancelled
? Good till date
? Spread IOC & 2L/3L Order

Assignment means an allocation of an option contract which is exercised, to a short position in the same option contract, at the same strike price, for fulfilment of the obligation, in accordance with the procedure as may be specified from time to time.

Option on Commodity Futures contract shall have the corresponding Commodity Futures contract as the underlying.

The significant differences in Futures and Options are as under:

Futures are standardised contracts to buy or sell specified quantity of the underlying assets at a price agreed upon by the buyer and seller, on or before a specified time. Both the buyer
and seller are obligated to buy/sell the underlying asset.

In case of options the buyer enjoys the right & not the obligation, to buy or sell the underlying asset.

Futures Contracts have symmetric risk profile for both the buyer as well as the seller, whereas options have asymmetric risk profile. In case of Options, for a buyer (or holder of the option), the downside is limited to the premium (option price) he has paid while the profits may be unlimited. For a seller or writer of an option, however, the downside is unlimited while profits are limited to the premium he has received from the buyer.

The Futures contracts prices are affected mainly by the prices of the underlying asset. The prices of options are however; affected by prices of the underlying asset, time remaining
for expiry of the contract, interest rate & volatility of the underlying asset.