Incorrect margin requirement showing in zerodha kite terminal

Commodities
1

Hey, today in kite, I observed it is showing that the margin required for buying one CRUDE OIL SEPT FUT Contract is- “7122”. Whereas margin required for buying one CRUDEOILM SEPT FUT is- “19859”.
The margin required for buying the mini contract is more than the standard contract. How is this possible?
Why this kind of issue arises? Is this some kind of glitch coming from your side?

I am providing the link for the video- Kite Zerodha - Positions _ Kite 2024-09-06 21-39-11.mp4 - Google Drive
(Change the video quality to 1080P for better quality)

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3

For hedge position margin benefit will be given. As you are having PE position future margins are less.

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4

@Ragavendran_M
At first, I thought the same. However, I realized that he holds an open PE position in CRUDEOILM, not CRUDEOIL.

Therefore, the margin for CRUDEOIL September futures should be greater than the margin for CRUDEOILM September futures.

I cross-verified that there is no margin benefit for holding a CRUDEOILM PE when buying CRUDEOIL futures.

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6

You can see the final margin got reduced from 198000 to 188000. We will get margin benefit for cross product also.
Above mentioned issue is completely different where for crudeoilm future not getting benefit in order window.

7

Got it. We will check this and respond here by Monday EOD.

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8

Hey, Now I have so many questions- I knew MCX does not provide us any margin benefit. When we create any kind of option spread there is no margin reduction. Know for the first time, I recently noticed this kind of cross margin benefit.
Here are my questions-

  1. As you have written I should have also got the margin benefit for the CRUDEOILM Future Contract, which as of now I am not getting in the Kite terminal. What is the reason behind this issue, can you kindly explain?
  2. Can you kindly briefly Provide me some insights about this kind of cross margin benefits? Can you provide me some kind of resources regarding this matter(Margin benefits in MCX), like-Zerodha blog or Module or Any 3rd party site regarding this information?
9
  1. Deployed a few updates on Friday evening which might have caused this issue in order window margin. We are checking it and will reply on Monday EOD.
  2. You can check here.
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10

We have identified the issue in order window margin. Our developers are working on it to fix. We will reply here once it got fixed.

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11

Okay, please keep me updated.

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