Margins:

Two types of margins need to be paid to take up and hold positions in the option segment. They are known as Initial margin and Mark to Market Margin. While the initial margin has to be paid up-front as a percentage of the value of the underlying before the deal is struck, mark to market margin emerges daily when the contract is mark to marketed and the same has to be paid on next day basis. Failure to pay margins by clients will result into compulsory close out of one's position as insisted by SEBI.