Options AMO Order

Want to know if AMO orders will be executed with the overnight strike price premiums?

Can I place orders for Option leg strategy (2 legs on both Call & Put side) and expect the orders will be executed at the same overnight premium price.

AMO orders are of type NRML rt?
So it should be placed with same overnight price bcos these orders are placed before market opening ?

Is the understanding correct?

Also when will Zerodha provide Basket orders?

This is the third time I am asking when will Zerodha provide Basket orders to reduce margins with hedging.

With AMO, you can either place Limit Order or Market Order, and depending on that your order will be executed, not at overnight premium price.

If you place Limit Order, your order will get executed at price you have mentioned, if it is Market Order, your order will be executed at best available price at that time.

F&O AMO Orders are sent to Exchange at 9:15 AM.

You can use both NRML as well as MIS.

How will hedging work for margins in AMO orders - let us say even if it is Market NRML order

I have both buy and sell orders then will the margin be only for hedged positions?

So If I place a buy order and then a sell order will it take only the hedged margin and allow the order to be placed ( wherein I have only the hedged margin available in the account)

Also what happens if sell order gets executed first and due to some issue buy order does not get executed ( though market order should not have any issues)

Will there be a margin penalty in either of the above case ( though if first buy order is placed then will it be executed in sequence - so first case should not occur)

And all these issues should be solved with Basket orders - when we can expect it to be rolled out?

@nithin, @ShubhS9 - Can you pls provide some details?

Margin requirment for hedged positions will work same as it works for NRML or MIS product type.

Even if you are using AMO, the underlying product type is still going to be NRML or MIS and margin requirement will be according to that.


For naked Sell order to get executed first, you will need to have adequate margin in your account. If you don’t have required margins, the order will be rejected.

@Siva can you.

Basket orders should come next week.

First it was supposed to be this week now it is next week :frowning:

What is basket order and how is ut useful

Basket Order will make executing multiple orders easier, it is more useful for F&O traders who deploy multi-leg strategies.

Will there be any benefit with respect to margin. Like we can directly maintain lesser margin than that required in naked calls.
If not so is there any other option for that

@venugopal - It is exactly for lower margins as per new SEBI rules we need to hedge orders and not do naked options writing for which margins have been increased.

Try a hegded options writing in zerodha margin calculator or any other calculator and you will come to know of the margin benefit

vijay let me explain my doubt clearly. Actually to get benefit of hedged options we first need to have sufficient margin to execute naked options also.
I want to know does this basket orders help me with not maintaining more margin than required for a hedged option.
@ShubhS9 can you help
Also want to know the charges in case of basket orders. To be detailed, using basket order i ordered a call and a put option at the same time. Now what would be my charges, rs.40 or only rs.20

If you are taking Short position first then you will need full margin to take naked position, you will get margin benefit only after the buy position is executed.

Each order will be treated as different, so charges for two orders will be Rs. 40.

Some questions

  1. sure about timeline?
  2. for multi-leg option strategy will it display total margin required before placing order? (total margin includes benefits for hedged strategy)
  3. Will it be executed sequentially taking margin benefit into account? Long legs first and then short legs?
  4. What is expected response if it is executed partially? One order goes in while other one keeps lingering
  5. Can you make sure it’s all or nothing? So customers don’t have to deal with partial fills?

Exact questions which are in my mind too.

But one thing I can say is only if long legs are executed before then only hedged margin will come into force for short legs. (Orders in basket are sequentially executed so we must have have long legs first)

If short legs gets executed first (due to some issue in long leg like limit order etc) then if sufficient margin for such naked option writing is not there in trading account then order will be rejected.

Don’t believe all or nothing is possible but might be @ShubhS9 or @siva can comment more

You are right. If Buy leg is executed first, you will get margin benefit beforehand. For Short legs to execute first you will need to have that much margin in your account, else your order will be rejected.

@ShubhS9 - Just one more question to be clear here - when orders are added to the basket first long & then short - we will see only hegded overall margin which if available in trading account will allow basket completion.

But when we trigger the entire basket order all the above explained will come into picture based on the various scenarios wrt the individual orders.

Also the orders in the basket will be executed in sequence rt - and there is no question of all or nothing rt?

If anything fails we have to manually place the failed legs.

@siva - Still waiting for the basket order and we are discussing so much on it’s functionality which is non existing as of today :slightly_smiling_face:

Most likely this friday we will take out in beta.

@ShubhS9 - Any updates on the points?

Any updates?