As we know, the margin req is higher during last few days of FnO expiry. My Avble margins went negative 2 days before Oct '21 expiry and I had to exit few option positions to get back to positive. I’m wondering if something similar happens in the future, can I lower my margin req by entering into an offsetting trade… for eg: If I am short SBIN CE 550… could buying SBIN CE 600 lower my margin req ?
The only thing that I am not sure is if the system would let me place a new buy order for hedging when my available margin is negative… sure it will bring down the required margin but what about the initial margin required to place the new order ? @siva