Pls help me in understanding this.
Under the basket order tab, the margin requirement is shown as Rs.313712.5
In the Zerodha Margin calculator, it says total margin is Rs. 53,028
How to interpret this?
In Basket Order you have added 190 CE instead of 190 PE which you have added on Margin Calculator, hence you are seeing difference in margin requirements as 190 CE does not hedge your Long Futures position.
Add 190 PE instead of 190 CE in Basket Order.
Okay will do. But this is one of the example. I see this difference in every hedge position margin requirement. I want to know which margin requirement is correct whether to follow zerodha margin calculator or the margin shown under Basket Order
Someone who’s actively doing hedging, can you pls answer?
Margin displayed on Margin Calculator does not include the premium which you have to pay for taking Long Option position, margin displayed on Basket Order in Kite includes this amount.
You will have to add premium you pay to take Long Option position to this margin.
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Even in the example given, they have mentioned the total margin is enough for overnight position(it doesn’t include the premium of option buying).
I find this contrary and I’m trying to understand things clearly.
Thank you so much.