Are margin benefits considered during
For example:
If i place a order(Future) that hedges my risk after the strike price at which i sold an option. Will i get a margin benefit only after the hedge order is executed or before?
Only after execution because that is how systems work, before execution there will be no way to know what order will be punched next, this can only happen if both the legs are tagged as a strategy, we are trying to find a solution around this , till then only after execution the benefit will be available.
If you are referring to benefit of option premium received via shorting options, yes then you will get it.
Automatically you can’t, one push is required from your end, may be use sentinel to get an alert when your condition is met and then can place order with couple of clicks.
1 Like
example:
i’ve sold a put @ 10700
If i was wrong about my assumption then i would like to hedge my risk of the price expiring below 10700 by shorting a futures contract @ 10700
Here, the margin required for my short put will be 92,964
the margin required for my future hedge would be 1,02,091.
Since i’ve got my unlimited risk covered on my short put as i’ve bought a future with it, i will be getting a benefit on my short put margin, right?
