Query about Option hedging

@nithin @siva @ShubhS9

Above position showing required margin is 39.7k

Q1. This means 39.7k needs to have in account to execute this order, right?
Q2. If I have only 40k in my trading account, should I have to show extra 39.7k to exit those orders?
Tell how to exit from those position without extra margin (what to exit first) ?
Q3. Does zerodha allows to buy this otm option?
Thanks :slight_smile:

Yes. Required margin is what you will need to place orders in the basket, while the final margin is what will eventually be blocked once orders in the basket are executed.

You don’t need additional margins to square-off your position.

It is always best to first exit higher risk/margin position, and then exit the hedge (Long Option position).

If the Option isn’t outside allowed range, you can buy.

Also, if you already have short option position, you can take long option position in any strike to the extent of quantity shorted.

1 Like

How to know the allowable range before order placing?
For nifty/banknifty?

Check this page to find out the allowed trade range for Nifty/Bank Nifty/Fin Nifty contracts

I want to take long position 3x my short quantity then add 2x of initial short quantity
Example 200 short 600 hedge then short 400 more.
Is it possible for Zerodha to allow this instead of
200 short 200 hedge then short a bit more and hedge again and so on

No, this is not possible. You can only buy options to the extent of quantity shorted.