@siva Is it possible for zerodha to provide buy and sell orders for options strategies. No need to reduce the margin exposure but whenever one of the option contract is squared off due to margin unavailability, the others should also be squared off automatically
For example after squaring off the short position due to low margin, imagine banknifty starts to go in opposite direction. This will result in huge loss if I did not square off both positions at the right time.
@Risk.Money is this facility available in your app? I can see there are options to simultaneously buy or sell positions based on strategy. My question is if one of the short position in strategy is squared off due to unavailability of margin, the app will square off other positions automatically ?
I do have few steps already taken in that direction. You can check Risk Dashboard > Monitor > Strategy Marker.
To begin with, it solves the first problem of naming your custom strategy. Next, you can select as many legs in the strategy as you want. And finally, you can monitor the overall profit/loss in real time of the strategy along with expiry payoff graphs … I know it can be pretty confusing to figure out how your strategy is performing by viewing it the positions list along with all other orders. Hence, the strategy marker.
Coming back to your question, as @siva suggested, this is M2M and strategy as a product needs to be supported by zerodha before such square off can take place just like it happens in BO order. However, I definitely can add a one click exit strategy button for clean and quick exit. Next release.
On a side note, getting 105% margin utilisation does not imply admin will square off. It happens much later, for I am almost always 105% utilised … but yeah … can happen. You will see … but seems you are already on cracking Options Fast Lane
For option buying no margin is required so how can we close it when there is margin shortfall for shorting option, If it is spread order or hedged position then it is sole responsibility of user to take care of his own positions.
What if banknifty goes in same direction of position, if we had closed this position then client would again blame us if we close long position. So, it is up to user to act.
Certain international exchanges like EUREX provide this facility where broker can put in a strategy product and strategy product is actually formed on the exchange with proper ISIN/BBCode and returned back. Though it requires you to be in Market Making business and generate enough liquidity for this newly formed product.
However, it can still be done by broker in a simulated fashion. We just have to find a FIX tag that is round tripped by the exchange at order and position level to find correlation between different strategies. I am pretty sure bracket order is also not supported by exchange. But you have the correlation between two legs stored at OMS / Admin level.
Though i do understand this will require substantial development with ground work … and if exchange is not willing … they will do everything they can to stop it from happening.
We got BO approved separately from exchange as an algo and algos are not allowed for retail traders in India, this is approved because it comes under risk reduction type and any other algo which is directional or arbitrage or alpha seeking won’t be approved by exchange for retailers.
Next, you can select as many legs in the strategy as you want. And finally, you can monitor the overall profit/loss in real time of the strategy along with expiry payoff graphs … I know it can be pretty confusing to figure out how your strategy is performing by viewing it the positions list along with all other orders. Hence, the strategy marker.
