New margin framework is here - to benefit hedged positions

[siva]

@Anurag_Chopra

I would love to have a feature on Kite… Its already on Pi… Link to excel… That way I can monitor various options stratagies using excel formulae much more conveniently…possible?

Not possible on kite.

[siva]

@Stonecold

Siva, kindly also add weekly expiries of Nifty and BankNifty in the Margin Calculator.

These would add too many contracts but with new margins thing coming up will check on possibility of adding.

[siva]

@Ganesh_Gupta

Are we on track for the new framework implementation from June 01?

Likely, yes.

[MaheshLaddha]

Will the limit order be for each leg in the basket or limit for overall credit received of strategy.

[Sumsam]

Any update? Wrt : revised margin required for hedged positions with examples?

[siva]

Yeah.Check below thread.

New margin framework - sample calculations

So yeah, the new margin framework finally is going to be applicable from June 1st (as per this circular). Check this post to read about the new margin framework: We have been getting many requests asking us for some sample calculations on what the new margins will be when trading F&O. Here it is: Check this document if the below image isn’t clear. [Screenshot_187] Like we had mentioned earlier, Margin required is relatively the same for naked F&O positions. Margin required for position…

[Ragavendran_V]

Will Zerodha then allow traders to enter into far OTM CE and PE positions to hedge their sold CE and PEs?
For example, if I sell TataMotors 100 CE of June today, will I be able to buy 110 CE of June to hedge this and prevent this position from yielding unlimited loss? As of now, zerodha does not allow me to place buy or sell options of next month in individual stocks even though there are bid-ask spreads for that particular contract.

[Ganesh_Gupta]

Hi, When can we expect new margin calculator with hedged positions?

[siva]

@Ganesh_Gupta

When can we expect new margin calculator with hedged positions?

After this new margins come to live only, for any examples you can check the sheet we have created.

[sachinsp15]

Hi, I am bit new to option trading. I want to know how can I take advantage of margin benefit. Say if I need to do short OTM CE and buy ATM CE, then how can i execute these trades in KITE. Is there any way to trade both the leg simultaneously to get margin benefit or do I need to trade separately with with buy trade first and followed by short trade?

[maddy_Des]

@sachinsp15

buy trade first and followed by short trade

This is currently the only way.
But if Zerodha allows us to buy in the first place.

[Sahas_Thombare]

Respected sir,

Which broker allow us to buy far OTM in option strike in nifty?

Thank You. Regards

[IRA]

basket order facility is coming soon but beware zerodha blocks otm option buying
due to some risk management rules by SEBI that a broker has to have a certain limit in number of position they can have
trade with caution

[Sumsam]

The margin requirement for all Stock F&O contracts increases 2 days prior to expiry (Wednesday and Thursday of the expiry week) to twice of the exchange mandated SPAN + Exposure margin required.
Is this likely to continue as before?

[Sahas_Thombare]

@nithin @siva for example, if iron condor required 33k to 35k for position then what will be margin requirements for intraday (mis) for same iron condor for day?

[nithin]

@Sumsam

The margin requirement for all Stock F&O contracts increases 2 days prior to expiry (Wednesday and Thursday of the expiry week) to twice of the exchange mandated SPAN + Exposure margin required.
Is this likely to continue as before?

Since all stock F&O leads to physical delivery, we have to continue blocking this. Otherwise after expiry, the broker can have risk management issues.

[siva]

@Sahas_Thombare

for example, if iron condor required 33k to 35k for position then what will be margin requirements for intraday (mis) for same iron condor for day?

Will let you know on MIS margins in next few days.

[Debashis_Das]

Can anybody please give any guidance about new margin framework in usdinr.I am a currency option trader.Do i get any margin benefit in hedged position of UsdInr ? or it is unchanged.

[partha1kundu]

Currently the only ± 500 otm is possible to buy in nifty however 1000 otm also is liquid…will it be remain the same? Then I have to switch to another broker

[siva]

After new margins we believe market OI will go up. SEBI rule on FPI limits also should go away after june 25th, hopefully after these market OI should increase and thus ours. We also moving option buyers to take custodian route to allow all strikes to trade so hopefully this also should increase our OI limits.