How to reduce margin

F&O
1

Hi All ,

These are different ways i reduce margin on my Nifty F&O short positions.

  1. Selling both CE and PE .
  2. Buying far off ce buy and pe buy .

Is there any other way i can minimise the margin . My current margin is around 60L but generating 1% -2% returns monthly.

I dont want to to take any risk but if i have to increase my returns the only way is to reduce margin . All valuable suggestions are welcome.

1 Like
2

You can pledge your holdings in Zerodha (even Mutual fund units - after transferring it to Zerodha Coin).
This can reduce your margin requirements to roughly around 60%.

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3

Buy NiftyBees and LiquidCase in 50:50 ratio and pledge it for option selling margin if you’re not already doing that. Easy 8% ROC in addition to your option selling profits. :chart:

Rules require cash margin of 50% so the ratio can’t be more in favor of equities or gold. :face_holding_back_tears:

If you’re hedging to reduce margin requirement, you’re probably doing it wrong (over-leveraging)! :warning: