Hii @ShubhS9@siva
Lets say i got a short signal at 1015 hrly cnalde close (positional). So if i buy aput (2lots) at that time and for hedging for capping my risk overnight i want to convert that to a backspread by selling 1 lot put option. How much margin will i require for just placing this sell order?
Is it the normal nrml margin for sell option to be applicable for executing the order or as i already have put opitons buy will require less margin?
If i use basket order it uses less margin with the buy leg 1st and then the sell leg. But as its 1115am when i am executing this for INTRADAY i want to get max benefit by just having the buy leg and for overnight want it as backspread. So whts the situation for margin?
The margin required for taking a short position will be less if you already have bought options. You can simulate this by adding buy legs in the basket order and then adding the short leg, this will give you an idea of how much margin will be required for shorting option once the buy position is in place.
@ShubhS9
Ya in basket orders is ofcourse less. I am asking if i have buy of puts from 1115am and at 315pm if i want to hedge naked puts by converting it to backspread via selling put options, will the margin requirement be less as it used to be in basket order execution scenario (less means if i execute backspread via a basket orders its roughly 50k per lot of backspread)
So will it be the same near around 50k be deducted from account when i actually sell puts at 315pm while having buys of puts since the same day 1115am / previous days ?
You can simulate this by adding buy legs in the basket order and then adding the short leg, this will give you an idea of how much margin will be required for shorting option once the buy position is in place.