What does "You must have at least INR 2,500 NLV to open or increase an uncovered option position" mean?

Clients who maintain an account with IB India must maintain net liquidating equity of at least USD 2000 (equivalent in INR) in order to establish or increase an existing uncovered options position.

You can see the Equity with Loan Value and Net Liquidation Values of your account in the Account window of TWS.

In order to submit the order you will need to deposit additional funds to the account.

Please Note

Any option position other than those listed below is considered uncovered:

  • Long call or long put;
  • Covered call;
  • Long call spread - Short calls vs equal quantity of long calls where the exercise price of the long calls is equal to or less than the exercise price of the short calls; or
  • Long put spread - Short put vs equal quantity of long puts where the exercise price of the long puts is equal to or greater.

Examples of uncovered option positions include cash secured short puts, short (credit) call and put spreads, butterfly or iron condor positions.


Additional Information

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