in above scenario, required margin is arnd 12L (11 lots) bt final margin is 1.9L
cn i take this position with 1.9L?
will margin requirement increase nearing expiry or on expiry day?
would appreciate any help!
To place both orders, you will require 11.8 lakhs. 1.95 lakhs will be blocked once both the orders are executed.
Once the March expiry contract expires, your position will no longer be hedged so the margin requirement for holding the April futures contract will increase.
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will require 11L even thru basket order?
Yes. As you can see there are two margins displayed, required and final.
Required margin: This is the margin that is required for placing all the orders in the basket.
Final margin: This is the margin that gets blocked once all the orders in the basket are executed. This is lower as when the second leg is executed you start getting margin benefit for having hedged position.
bt i used to trade this position (in kotak sec.) fr whole january mnth in 1.25L capital … 2lots ce n pe sell n 2 lots ce n pe buy (fr hedge benefit) . fr this, req. margin was 3.5L bt used to keep only 1.25L in kotak acc. what you saying makes perfect sense tht i need to keep 11L bcos thts req margin n after orders get executed , will get back blocked money bt thn hw come this is possible in options?