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?
What should I do if my broker Zerodha isnāt allowing me to buy the option?
2,1 and then 3 i believe
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Can this calculator tell us about weekly spreadsā margin?
Weekly Expiry contracts areāt currently available in calculator. As an alternative you can use Current Month and Next Month contracts to get idea about margins required for Weekly Spreadās.
How much is the margin reduction if a long equity future is hedged with a short call option or alternatively a short future with short put as hedge?This is nowhere seen in the circulars or examples! @Sensibull @ShubhS9 @nithin
If you want to hedge Long Futures you need to buy Put and if you want to hedge Short Futures you need to buy Call.
You can check it yourself on Margin Calculator.
I checked is the combined margin requirement column the right one? For eg for infratel long fut and short call I got combined margin as 1.81L whereas NRML margin for future is 1.6L meaning i get the short call at 21k right? Attaching screenshot pls help to interpret this as it says 3.36L in another table below
Bottom table shows total margin of both positions.
Margin showed in upper table is more important, 1.8lakhs is what you will need to trade these both positions in combination.
21k is premium you are receiving for shorting Call option.
If you are new to Options, Iād suggest you to first learn about Options on Varsity.
Oh yes thanks a lot just wanted to confirm. Also while initiating any hedge to receive margin benefit we should always buy the future first right?or it can be other way round also? Like I have read to get margin benefit in an iron condor we need to complete the buy leg first?
In your case where you are Buying Futures and Shorting Call Option, you are going to need full margins irrespective of which trade you execute first, you get margin benefit only when both trades are executed.
One more thing, you are hedging your Long Futures with Short Call, hedge it by Buying Put your margin requirement will come down drastically to 21k, in this case you can Buy Put first and then Buy Futures.
Yes that is what I normally do but Im thinking of changing my tactics with this margin policy as theta decay does start well into last week of equity option especially from expiry-2nd day. Whatsay? Yeah but I will have to pay big margin 2 days from expiry also acc to physical delivery.
But since both orders donāt act as one single unit, zerodha RMS can, at itās discretion, square off the constituent leg(s) of an order in any sequence that is deemed fit for the occasion like say in times of high volatility. Itās only risk free if you are able to send all the legs of the order as one bundle and also squared off similarly as a bundle or is it that such orders are exited by first squaring off the leg(s) that has unlimited risk and then the others- so in case of an emergency that would look like squaring off sell leg of call spread first and, strictly only after that, squaring off the buy leg
I have seen people requesting for basket ordersā¦is it for the feature of consolidating multiple legs of an order? And does this entire compound order get sent to the exchange as one unit or is it happening at the level of the brokerage houses (given that the regulatory bodies themselves have announced formally, I would like to see the entire compound order bearing only a single order ID- of course brokerage will be charged separately on each leg)ā¦I wonder how all of it happens in markets abroad
Am trying to make sure that in the event of an unexpected extreme movement am indeed protected
Remove exposure margin for hedged trade sebi is retarted lunatic for risk of 5k and asking for 50k crazy bastard sebi