This may seem a very trivial question but I need to clarify this as I couldn’t find a good resource that elaborates about it in detail. Let’s say I want to make a put debit spread in Nifty. I have 50K in my account, and the strategy requires ~20K (thank to the margin benefits) to execute the trade. Check the screenshot below
- If I place the market order, then the strategy execute immediately but most of the times, I end up taking the spread at very different price than I expect.
- If I put a limit order, most of the times the sell order doesn’t complete and get rejected saying “insufficient funds”.
I always place buy order at a price higher than the top bid, and sell order less than the current top sell bid. For example, in this case I would have placed the order at 57 and 7.
My questions:
- Is there a better way to ensure that the spread is executed without any order getting rejected?
- What is the time limit between the buy order and the sell order to get the margin benefits?
- How to avoid slippage if my lot size is, say 100, for each option