Thank you
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What if we sell first?
When we but the protection, will the blocked margin reduce?
In case of short strangle which order to be placed first? Selling PE or CE?
When I want to go for starngle or straddle, which leg I have to sell first(call sell or put sell)??
If you sell first you will require full margin until you hedge your position.
You can place any leg first, just keep in mind you will need full margin to execute strangle. for strangle and straddle you get margin benefit only after both legs have been executed, untill then you need to have cash for full margin in your account.
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To get margin benefit, buy order should be executed prior to sell order. Similarly while closing the position you need to close short option first before. What happens to accounts those have funds that are only sufficient for hedged position? (say <50k account size). Isn’t there a liquidation risk here? How does sensibull manage simultaneous exit of positions without market orders? Is there any feature like in interactive brokers to enter and exit spreads?
point no 6 If you buy protective hedges for futures, margins will go down nearly 80%. That is, buy a put for protecting a future buy and buy a call for protecting a future sell.
Please explain this with an example of Banknifty …Future Long and an ATM put long…or reverse way Future Short and an ATM Call long
Pls elaborate
I feel like cover orders should have lowest margin based on stop loss. Most of the strategies now require lower margin than Cover orders.
Does new margin rules also apply on USDINR?
Yes, new margins apply for Currency F&O as well.
Without the protection
With protection
You can see this here
https://web.sensibull.com/option-strategy-builder
@skanukollu
You can do buy first and then sell. No risk. We have also automated the market execution to follow this
Sir, suppose due to big move If my 9900sell call in 300 rs loss and 9800buy call in 300rs profit and as my net P/L is zero, then will i get margin call for extra funds as my sell call in loss without considering buycall ???
@Sensibull is order placing in builder in sensibull are according to margin benefit order .
for example, I have position of 1. future sell , 2. buy call & 3. sell put, so what will be the order sequence in this scenario ?
Hi Team,
What will be the margin requirement for Covered Call i.e. Suppose i have 4300 Shares of Tata Motors and i want to sell the call of 110 (premium as on 02.06.2020 is 2.25). What will be the margin required for this call sell.
regards,
Rahul Patil
Despite you having shares of underlying your short call position is still unhedged, in that case you will require full margin.
How exactly span and exposer is calculated does it have any formula?
Does we get any leverage on margin for mis orders as before?