Peak margin, Intraday leverages, & 2nd order effects - Dec 1st 2020

[ShubhS9]

@Prateek_Malpani

Is the MIS leverage of 3.7X applicable only on Index Option selling only on the first option leg.
For example If I sell BankNifty ATM Call the leverage shown as per the margin needed is 3.7X (39K instead of the full margin of 147K) but if I add a short BankNifty ATM Put the leverage turns out to be much lower 3.2X (53K instead of the full margin of 170K)

Hi, have reported this to the team, they are checking this.

@Prateek_Malpani

If I further add Deep OTM hedge(long 32000 CE and Long 27000 PE) the leverage drops to 2.5X (37K instead of the full margin of 92K).

You do not get leverage for Buying Options, you will have to pay the entire premium upfront, the margin you see on Margin Calculator does not include the premium you have to pay for the Long Option position while the final margin you see on Basket Order is including the premium you have to pay.