Consider I sell Nifty options and also hedge it with buying options. So i will get margin benefit. If my margin requirements is 25-30k after hedging then will that reduced amount will be consider from margins from stock as collateral or full short options margin amount will be needed. I may keep some cash in order to buy hedge options…
If you’ve pledged securities for collateral margin, then the margin for short option position will be blocked form the collateral margin. Once the position is hedged excess margins are released in your account, you don’t need full SPAN + Exposure margin.