Option Margin - after sold hedge position

Option selling on overnight required appx margin of 1.5Laksh
Option buying on overnight required appx margin of 500 to 5000 rs.
When I am hedging position, it showing me the total margin is appx 40k
EG: Buying and selling put option of the different strike price.
So what happens after exiting from buy position?

Like I have 50k capital in my account, I cannot sell ce/pe with this capital for overnight, so I sell and buy other strike price of ce/pe with this 50k capital, So now can i able to exit from buy position first? or shold i need to exit from both possition?

If you square-off your buy position, your margin requirement for short position will increase. Not having sufficient margins to hold short option position will result in margin shortfall. There will also be margin shortfall penalty in such situations.

When you’re exiting your positions, it is advised to first square-off high margin position (Futures position or Short Option position) and then square-off long Option position. Explained in detail here.

it will also result in peak margin penalty . am i right ?


Thanks for the reply :slight_smile: