Hi, Just want to know. Say I have entered a Spread for CE ATM buy and OTM Sell with a resultant Margin of 60K, what happens when I adjust CE leg within a second and I have only available margin of 80K. Will this be considered for Margin Penalty or Position Sq off?? Please reply
To add a second question: WIll zerodha allow the hedge buy, as theoretically there is zero margin available despite the buying would immediately reduce margin requirement to half ??
Sorry, missed checking this earlier. Could you please explain more about what exactly you meant by the second leg you added?
You can always adjust your position as long as you have sufficient margin and the hedge isn’t broken. Any hedge break or margin shortfall due to this will lead to the position being squared off, and any applicable penalty will be passed on to the client.
Yes, you can add it, but note that you need to have sufficient funds before order execution since it’s an option buy. The margin benefit will be available only after the order is executed.
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