A few days ago I was trying to execute the protective call strategy using Banknifty futures and long calls. I initially bought ATM calls and a few seconds later shorted one lot of banknifty futures. I got the margin benefit and so I was able to execute the trade by having just Rs.50k in my account as free cash. I placed a stop loss about 100 points away from my entry in the banknifty futures and the system readily allowed me to place it without any difficulty. However when I tried to place a target level of about 180-200 points below my entry price for banknifty futures contract I got a rejection message saying that to do that I require Rs. 199000 in my account. Why did this happen when I tried to place a target in my banknifty futures leg? Is it because some margin was already blocked since I had placed a stoploss before? After I saw the rejection message I immediately cancelled my stoploss order and place an exit order at market price for the futures contract…but I would like to know if it is possible to place a stoploss and target using MIS code for such a trade without bringing in large margins (eg. Rs199000 in my case). Or is it that only one order can be placed (either stoploss or target) if I already hold a banknifty futures contract which is also hedge by long options?
yeah… you can’t place target and stoploss order without need of margin for either order in f&o… best solution, use nrml order type and use gtt to place both target and sl… soon anyways you aren’t going to get any intraday leverage in f&o, so you can very well start using nrml.
I can track nifty ; after 3.30 pm , with sgx and other global markets .
Is there any index to track banknifty after 3.30 pm ?
3 leg transaction orders in single order can be possible only in bracket orders, in which you can place buy/short order as a first leg, second one is SL, & third one is target. this facility don’t require extra margin as once SL /target order get executed, the another pending order automatically cancelled.
Zerodha has removed bracket order feature.
oh, i never checked that, also never seen any official notification mail., i was seen it before few months back.
just checked it for confirmation after reading your reply, & yes the facility isn’t available.