Query on spread stratergy

Current BN oct futures is at 28615.

i want to sell 28500 put and buy 28400 put 100 quantities each.

lets assume BN crashes and goes to 26000.

  1. Will I get margin calls to maintain amount for my short leg (28500 put) ?

  2. If answer to 1 is yes, then what happens if i dont maintain margin amount ? will my hedge leg be auto squared off or any other action is taken ? ideally as per theory i am supposed to incur max loss of (100 - net credit)×100… y then i am getting margin calls ?

If you have span and exposure then you will not get.

Both may be closed or let go,ideally one side is not closed. This is how margins work in India. Theory is for your understanding of pnl.

Thanks for the reply @siva .

Will it be the combined margin requirement (combined span and exposure of both short 28500 put and long 28400 put)


Only the exposure and margin of short 28500 put is considered ?

Margin of your portfolio.