How to Hedge the stock?

Hi All,

I would like to ask the following question.

Here is the scenario:

suppose ,I have bought 100 share of SBI in intraday. if stock price goes down for 10 points, i would like to place SHORT order on the same stock, instead of booking LOSS. so how can i place 2 orders at a time (not Stop loss). if stock price goes down (want to sell /Short 200 Stocks), my sell should be triggered . Now both BUY and SELL both should be in ACTIVE Status.?
help on this ?

Thanks,
yadav

  1. Buy I lot in future and short in cash.
  2. Buy in future and buy PUT of the same.
    3.buy cash and buy put.

Which ever you like it will hedge your positions.

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My idea: Buy in BSE and sell the same stock in NSE or vice-versa.

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Buy 100 shares of SBI in CNC. Place a Sell SLM order for 200 shares in MIS, 10 points lower. Now if SBI falls 10 rupees from your buy price, then 200 shares will be sold in MIS and both your buy position of 100 qty in CNC and sell position of 200 qty in MIS will be open.
Ensure you sell out the buy CNC position before the end of the day as otherwise, this will be taken into Holdings. Also, you require full cash for CNC trades. Margin available only for MIS here.

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Thanks for all the replies.

First i would like to try Asha_Molla idea. Buy in BSE and sell in NSE.

Also Please suggest in Futures. BUY and SELL ?

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Will it work in same account or need to add 2 account for hedging in bse and nse

What’s the use of doing this? This is similar to doing a BUY of NIFTY November FUTURES and SELL of NIFTY December FUTURES at the same time. You dont benefit at all. Or am I missing something?

This is hedging

if you buy futures and hedge with 2 lots or PE or selling 2 CE ITM it makes sense. But how would buying futures for this month and selling futures of next month make sense?
It will go up and down in the same way isnt it? when delta = 1 for both, how will it make money?

Would you mind explaining the logic

so you finally woke up after 1 year.

Good for you.

how do I hedge those stocks securities shares ; which are not into f&o ?

A Simple Query about Zerodha Order Placing… If the Nacked Put of BANKNIFTY is Sold… Then it requires around 1L + But buying one deeper put will make the combo a HEDGING. Which will reduce the margin from 1L + to 20 K + How to place the order in Zerodha… Can anyone guide…

The order placing is similar to how you place order for any stock.

You can first execute the Long Option position and then Short, this will give you margin benefit beforehand.

There is also Basket Order facility available on Kite Web, which makes executing multiple orders easier, you can know more about that here.