Hi can somebody please explain the margin on options selling by buying the same derivative in the far range, Please explain me what is the range that one should take the opposite position in nifty and bank nifty. and does it also work as a hedging when the market makes unprecedented opposite move
You can try margin calculator by applying your strategies to check the margin. However based on volatility there shall be changes.
If you are using “Kite” you can check the margin required through basket orders as well, during the live markets.
Lets say you want to sell 42600 CE [email protected] , You can Hedge your position by Buying 43200 CE @ 13 . IT can reduce your margin requirement to a large extent.
You can check out this video from Varsity which explains the reason behind high margins and how to reduce overall margins.