Hi, I think the following two sets of positions are equivalent.
(a) Sell 2 lots of Nifty FUT, and sell 4 lots of 20800 PE
(b) Sell 2 lots of 20800 CE and sell 2 lots of 20800 PE
But it seems that the margin requirements for (a) is much higher than that of (b). Does anyone have a good explanation as to why?
Sorry, I did not notice that the combined margin requirement in the top right of the screenshots are more or less the same in this case.
However, in my practical adding of positions, I have still felt that option (a) uses much more margin than (b).
That’s correct, the table view shows the margin for the individual legs and the combined margin is after the margin benefit after you create the portfolio.
Thanks for your reply @MohammedFaisal . As I mentioned, though the theoretical margin requirement is the same in both cases, the actual margin requirement while placing the order is much higher in (a) as compared to (b). I have often been stuck with order reject messages after completing one leg of the order. In those cases, the required margin shown in the order window does not match what is being used in the backend (difference is 3x).
I always need to call Zerodha support in those cases, and they tell me that it is a known issue and sometimes they give me temporary margin so that I can get over this bug and place the order. Once the order is executed, the margin requirements fall back to expected values. They also told me that a fix is on the way but there is no ETA. This has been going around for me for at least a few months now.
I would really appreciate if this can be resolved for good as soon as feasible by the Zerodha team.
thanks again.
Sure
