I am a little unclear on zerodha’s policy for margins required for holding stock fno positions till expiry?
Can someone please explain with a detailed example?
I have already gone through the support page where they have explained it…
For example, I buy maruti Oct fut, short maruti 7800 call and buy 7500 put, can someone explain in detail the margin requirements e4, e3, e2,e1 respectively?
Thanks!!
If the price moves up and expiry is near, will it be the case that it would require 50% of margin(fut+call short)…
As put is otm, will it require increased margin near expiry??e4,e3,e2,e1???
The support article says 50% of span +exposure or contract value, whichever is higher…
Is the contract value 7700(cmp)*100(lot size) ??
Someone please help me in understanding this in details
Thanks @ShubhS9 sir… kindly help…
If the price of the underlying moves higher and if your Long Put position is OTM, this position will not require any additional margins. For the Long Option position, the additional margin is required only if the position is ITM.
For Long Futures and Short Call position, the margin requirement will increase on the day of expiry to 40% of the contract value or SPAN + Exposure margin (whichever is higher). You will continue to get any margin benefit, you were getting. You can check out this post for more details: Relaxation in Physical Delivery Policy - Margins collected
Yes. Contract Value = CMP * Lot Size for Futures and Premium * Strike Price * Lot Size for Options.
Thank you @ShubhS9 sir…
One more doubt…
If short call goes itm, what would be the total margin required?
And what would be the case if short call is otm near or at expiry?
50% of fut contract value+50% of short call contract value??
.5*(7700 * 100)+.5*(100* 7700* 100)???
I am sorry, this got me confused…
Do we have an example for this in any support article or varsity??
Does e4,e3,e2,e1 apply to long options only, if I am not wrong??
Thanks again in advance
For Short Open position, whether it’s ITM or OTM, only SPAN + Exposure margin will be blocked.
As explained above, the margin requirement for Short Option position and Futures position will only increase on expiry day to 40% of the contract value or SPAN + Exposure margin (whichever is higher).
The post I shared above explains this in detail. Do check it out
Yes, this is applicable only for Long ITM options.
@ShubhS9 sir…
If I create a basket of stock fut long, pe long and ce short, will the required margins be updated in The “BASKET SECTION” of “ORDERS TAB” IN REAL TIME??? especially e4,e3,e2,e1 etc…so that I can understand it carefully and practically before deploying a real trade next month?
Thx in advance sir ji…
@ShubhS9 Hi Shubham, thanks for the explanation.
I have a query:
I own 1 lot of a stock and I have sold a call against it which is ITM now.
What will be the margin required against my call on the expiry day as I am going to let it expire and my stock is available for delivery.
For Short option position, irrespective of it being ITM or OTM, the margin requirement will increase to 40% of the contract value or SPAN + Exposure margin, whichever is higher, on the day of expiry.