If I have a short call position and it is hedged
And if I have a loss of 20k in one and profit of 15 k in the other
What will be the peak margin reporting
If you had enough margin to enter the position, there isn’t any peak margin reporting issue. But if you make a profit in long option and lose money in short option, this won’t be good enough for covering the MTM loss on your short option. In which case you have to bring in the Rs 20k before the next trading day, otherwise there will be a short margin penalty the next day.
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@siva if we have say 20K profit in long option and 15K loss in short option, will there be any mtm issue, I mean will we have to bring in 15k or else face margin penaltythis, Similarly considering the position is completely hedged, will zerodha square off this.
You need to maintain span and exposure, if not there will be penalty on shortfall, if we are squaring off then we do both sides, won’t leave one side open but it is up to client to take care of his own positions.
Sir you mean to say I need to have extra 20k apart from the margin required to enter the trade even if I have an over all loss of 5 k only?
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You should always maintain span and exposure to carry forward position in order to not have penalty on shortfall.