I have Short Iron Condor strategy in place. If I check any strategy builder it will show required margin and its probability of profit and profit percentage.
Let say : My position requires margin of 46,491 and it shows profit percentage of 1.4 which is 675 is my profit.
But when it comes to final calculation, my actual margin required for the above position is 97,860 and final margin is 46,491. So anyway I have to keep 97,860 in funds to execute this trade. Ultimately my profit percentage is not 1.4 as mentioned in builders.
Along with this I need to pay trading charges which will again reduce my profit percentage.
So as a Trader I should consider all these aspects and calculate my profit and loss at the end of trade ?
Is this understanding is correct or what ?
Also, As am doing selling instead of explicitly closing my positions at expiry. Can I let my positions expire to save additional trade charges ?
it shouldnt be that much margin difference, are you shorting first before buying hedge?
if you buy hedge and then short, you will need only lesser margin to enter the trade. idk which builder you using, it shouldnt be 100% extra margin needed to maintain the trade. check sensibul builder example below
In sensibull profit percentage calculated based on final margin (funds needed) but in Zerodha we could see required margin is higher. Hence for this position final profit percentage should be calculated as per required margin holder by Zerodha right ?
