My doubt was if we are able to withdraw benefit after placing hedged positions. Reason I got from customer care was since full margin should be there before one leg is closed.
Equity? or you mean stock futures/options? also I think you can wait for few more days to get more details on the margins.
I meant equity options selling. Sorry for confused wording.
But using kite, we place order one by one (eg. Bear call spread). So how will we place combined order for 2 options at a time?
Place buy leg first and then sell leg, also we are building something for this.
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Hey @siva, @MohammedFaisal , I have one question.
Earlier when all this was a mere speculation @nithin sir shared one formula for the new margins calculations:
Max Loss + premium credit - premium debit + 1.5% of the notional value of all short legs combined.
Are the calculations in the new excel sheet shared above are on the same lines?
I think earlier 1.5% has been replaced with 2%.
Any other changes?
TIA
thanks faisal… will zerodha software show real time margin requirment for a particular strategy before we take a trade.… this is required so that we can find out which strategy is optimum for risk and margin requirment @nithin
Yeah, working on it.
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I think for that you will have to use margin calculator
@nithin @siva , Can you please clarify on strangle/straddles? since the risk can be only on a single side, do we still have to block margins for both legs? Other countries have single side margins, is it the same here with this new framework?
Same question I have for Iron Condors. Risk is again on single side, so ideally, the margin required in above image by @nithin should reduce further for Iron condors by 7500
Yes, this is correct. The exposure margin is 2% for index and 3.5% for stock F&O.
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Selling strangles/straddels has unlimited risk, so assuming it may not get much margin benefit, will wait for few more days till exchanges come out for exact answer.
The SPAN margin will only have one side risk, however, exposure margin will be charged on both the legs.
It can’t block exact loss, should give some leeway in case where one leg is closed, also for iron condors we can see 60 to 70% reduction in margins to what is charged now, I personally would be happy with this.
thnaks maddy… @nithin nithin brokerage calculator can only give 1leg margin , for a hedge strategy where there are multiple legs we need to know the margin BEFORE ACTUALLY PLACING THE ORDER so that optimum premuim and risk can be found… can u pls ask ur team to incorporate the margin requirment in the kite sw so that we can know the margin requirment before taking the trade thanks
@siva @MohammedFaisal i am happy with this margin , just one query , its applicable stock and cds also
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Yes… I’m guessing that for Stock spreads also the reduction is 60 %… But… need some clarity on this.
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Yes, as per the SEBI circular, this change is applicable for CDS also. By stock you mean stock F&O or Equities?
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