Hi, If my margin is enough to short the options but cash balance is zero for intraday trading. Will i be able to exit the leg in case of a loss where i have to pay more premium than what i got as credit?
will i be able to buy hedges with zero cash balance?
1. Yes, you can exit a position even if your available cash balance is zero. However, this will result in a negative account balance and may incur interest charges. 2. For hedging purposes, once you complete a sell (short sell) position, the premium received can be used to buy an option of a different strike price. If there is not enough cash balance or premium to cover the cost of the option, you will not be able to purchase the hedge.
1. Yes, you can exit a position even if your available cash balance is zero. However, this will result in a negative account balance and may incur interest charges.
2. For hedging purposes, once you complete a sell (short sell) position, the premium received can be used to buy an option of a different strike price. If there is not enough cash balance or premium to cover the cost of the option, you will not be able to purchase the hedge.