NSE or SEBI is giving a reduced margin on hedged positions. How many of you think it will stary for a long period.
Ex: A naked sell option in nifty approx asks 1lac as margin, however a position with hedge would bring down the margin to a great extend. (Approx 30k to 40k). This is usually benefits a small traders who were not able to take sell position couple of years back.
What iobserve is some of the small traders makes some consistent return from this.
On a contrary, if market identifies something is working out well for a small traders, that would not stay for longer😀
So how many of you think this margin mechanism would stay for a longer period.