New margin framework - sample calculations

F&O
24

And Zerodha will make 160rs per condor.
@nithin Are you planning to decrease brokerage for condor order placed through sensibull.

25

Why would they ? & why should they?

26

I have complained about this multiple times to SEBI, but no use.
I buy at 9000 now price is at 8000.
but I am man of principles. I wont square off the position and in the process let zerodha loot me by 20 rs.
NO SIR! Never.
. THis is the only way to teach lesson to these thug brokers.
Imagin if all the retails only enter position and never square up. These guys will loose half their income!!!
I suggest youalso do this.
If you enter IC but never square off you will save 80 rs.

27

What will be the margin requirement in Short Strangle?

28

Aprrox 1.20l

29

Try this instead if you understand do double calender at 30delta of next month and sell weekly n see the magic

30

Hi @nithin, @MohammedFaisal,

In case of bear call spread, Is 54% margin reduction applicable for both MIS and positional trades ?

Thanks
Lakhan

31

Missed to include the net option premium in the SPAN column but included in the Total Margin column. The total margin is correct(1.23L)

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32

Yes, these new changes apply for currency F&O too(exchange circular).
You’ll get higher margin benefits for spreads there too.

33

Simplest way to estimate the new margin requirement will be
SPAN- the difference of the spread * lot size
Exposure- 2% * underlying price *lot size.

Yes, your estimate seems close enough.

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34

Margins for short strangles will remain the same(or slightly higher) with what it is right now since the max loss of these positions are not defined.

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35

What was the earlier formula ?

36

Can you explain further?

37

what would the margin requirement look like for a debit spread. In the illustration excel sheet only credit spread details are given. Kindly substantiate for debit spread also

38

Same as credit spread as the risk remains same.
.

39

That way calendar spreads will have zero SPAN. nevertheless waiting to hear on requirement for calendar spreads…

40

What would b d margin if my spread max risk is say 3000 only?

41

This means margin required is same irrespective of implied volatility?

42

what makes premium go down? I think more liquidity will bring people to trade more OTM calls.

43

@MohammedFaisal
Shouldn’t the margin for naked deep OTM go down significantly since there is no SOM and SPAN should be lower for them as compared to ATM?
Thanks!

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