Futures Margin Requirements

Do we need full margin on Expiry Day for Nifty, Banknifty Futures if we use hedge to reduce the margin?

any help is appreciated

Hi @pangra ,

The margin requirements would not increase and remain the same as long as the positions are hedged even on expiry day for index futures.

Only if the hedge is broken, you would be required to bring in higher margins

It mean I have to square off the Futures position (Nifty or banknifty) first then the Option Strike… am i right? and if i squre off Option first then i require full margin…

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That’s right

To avoid any margin shortfall, it is advisable to exit the leg of the position which requires higher margin.

In your case, futures will carry higher margin requirements compared to let’s say, a buy option hedge. So, as you rightly mentioned, you need to exit futures first here.

future margin increase if option is OTM ?