Query on ELM margin

[Meher_Smaran]

Hi @dtyxg @psmp

Margin requirements for hedged trades up by 80%!

This isn’t an issue specific to Zerodha. An additional 2% margin is being blocked for all short positions irrespective of whether the position is hedged or otherwise. This is as per the recent SEBI circular: [image] The increase in ELM by 2% is on the entire contract value. So for every lot of nifty option being written (assuming nifty is at 23000, lot size 25), margin will go up by ~12-13k. Also, from February 01, the margins will rise further since the calendar spread benefit will go away…