New margin framework is here - to benefit hedged positions

[brown]

@siva , @nithin On basket orders (wiith new margin framework ) , if we have 3 or 4 legs of options in one basket - (for iron condor, spreads ,calendars ) - the brokerage will be considered 20 rs. per one basket ? or brokerage will be 20 X 4 = 80 rs for one iron condor like strategy where we input 4 legs manually? Will there be an advantage of entering one basket for multiple options CE and PEs on brokerage and other charges? Please educate us by some example too if possible. Thank you.

[siva]

@brown

On basket orders (wiith new margin framework ) , if we have 3 or 4 legs of options in one basket - (for iron condor, spreads ,calendars ) - the brokerage will be considered 20 rs. per one basket ? or brokerage will be 20 X 4 = 80 rs for one iron condor like strategy where we input 4 legs manually?

It will be 80 rs.

@brown

Please educate us by some example too if possible. Thank you.

It is too soon now, will do before we release baskets.

[Ragavendran_V]

Hi Nithin,

  Does this lower margin requirement for hedged positions work for stocks as well? For example, if I sell SBIN 300 CE at 20 and buy 310 CE at 14? 

Regards,
Ragavendran

[siva]

Yes, for stock fno also.

[Shyam_Pandit]

Would basket orders execute at market prices? This would cause big slippage for large orders… would be great if there was an option for executing at best bid/ask price. @siva

[siva]

@Shyam_Pandit

Would basket orders execute at market prices? This would cause big slippage for large orders… would be great if there was an option for executing at best bid/ask price

Yes limit orders also will be available.

[Anurag_Chopra]

@siva 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?

[Stonecold]

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

[Ganesh.Maddi]

So for option buying in delivery and cash intraday no changes. Is it Corret ?

[maddy_Des]

@siva
Where are you???

[Anurag_Chopra]

Everyone waiting

[Ganesh_Gupta]

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

[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?