New margin framework is here - to benefit hedged positions

Trading Announcements
400

See hedged position margin are came down significantly , what the risk we have , SEBI clearly reduce the risk to broker but for retail trader NO , see how . those who are trade with 5 lots nifty short strangle , now the same amount now he can took 50 lots + if hedged , naturally people can take more than 50 lots , now the risk is high reward is low any big swing in the market absolutely you will receive a margin call broker will square of the position ,
SEBI will always try to save a broker and govt revenue , not traders

market structure will never change , here only 5 to 10% people only make money , in usa also same percentage ,
if you are good to managing risk you will be won in this option jungle, Happy Trading :joy:
Now managing a hedged position we need a ultra knowledge

2 Likes
401

It is not a rocket science

1 Like
402

Now all strikes in nifty are allowed. Will it be restricted later?

403

I think it will be slightly more balanced play between sellers and buyers, so I don’t expect 15% to get filled in fast. If it does, the block will be enforced.
Just my thoughts.

404

Why anyone from zerodha not answering?

405

What do you want to know?

406

Suddenly there is no restriction in far otm nifty. Why it’s so and will it remain the same?

407

@siva-reddy

408

Will there be margin benefit for calendar spreads involving weekly with monthly options for Nifty and bank Nifty ? Unable to verify as margin calculator does not show weekly contracts

409

There will be, to get the idea of extent of margin benefit for Calendar spread, try with current month and next month contract.

410

The restriction on buying OTM options is linked to the overall OI at the exchange. Since we(our clients) get to utilise only 15% of the OI, we have to restrict OTM option buying when we get closer to the limit.

Since the OI at the exchange has picked up, we are able to allow all strikes to buy.

411

2021 buddy😂 everyone knows zerodha’s ‘soon’

1 Like
412

But will it be same later…I switched to 5 paisa because of this restriction

413

It still doesn’t allow buying deep OTM in banknifty…

414

If this OTM buy issue continues, Option traders like me will move to other brokers. After new margin, for getting the margin benefit and hedge the positions, we need to buy otm options.

Guys, Please suggest good broker for options trading along with Collateral margin facility.

2 Likes
415

Does the new framework has opposite effects? My order was rejected on weekly nifty option 9600 PE. i wanted to buy it as protection.

Since options are actually for hedging, why zerodha doesn’t allow it. Plz come-up with a quota for hedging people and rest of your limit can be used for speculators. I like kite which is why i am still using your service.

1 Like
416

What was the error message?

Have you logged a ticket?

It clearly says all strikes allowed

And that too on day 1 of the month, it’s improbable that there could be OI freeze

417

On weekly there is a limit.

418

@siva-reddy

Please can you clarify if there are strikes blocked

Perhaps you can educate me with a link

419

Is there a tracker for clients to know which strikes have no or little room for more OI

So accordingly, strategies can be built, calculations prepared for safe hedging
It makes no sense to sell an option and be forced to hedge it with another option that’s richer in premium