Hi all,
Has anyone else felt that the Nifty margins were off today, especially with hedges?
I had bought ~4550 qty of Nifty CE 26000 (12 May expiry) as a hedge for my short calls, and they were giving a margin benefit of Rs. 12L as on Friday, But today they were giving 0 benefit (even before market open)
And when I sold them, my margin actually went up by a Lakh approx. Is it even possible?
Hey,
Didnt see anything abnormal in margin today. It’s normal behaviour. I don’t think it will become completely zero.
Since tomorrow is expiry, if the contract is deep OTM, the exchange tends to reduce the hedge benefit, especially in a down trending market, so it seems fair enough.
And yes, when you sell the hedge, margin will go up because whatever little benefit you were getting will also be removed.