How much capital is required to start options trading?

There’s no fixed minimum SEBI mandates for options trading specifically, but in practice the required capital depends entirely on whether you’re buying options (paying a premium) or selling/writing options (which requires margin). Buying a single lot of an option requires just the premium amount, which can range from a few hundred rupees for a far out-of-the-money, low-premium contract to several thousand rupees for one closer to the money, so buying options can technically start with relatively small capital. Selling or writing options, however, requires posting margin (SPAN plus exposure margin) that can run into tens of thousands of rupees or more per lot, depending on the underlying’s volatility and the specific strike, since the seller carries theoretically unlimited risk. You check the specific margin requirement shown by the broker’s margin calculator for the exact contract you’re considering, rather than assuming a general rule of thumb, since it varies significantly by stock or index and by market conditions at that time.