So, I have taken a screenshot for a particular trade as an example. And it can be seen that Opstra states 32722 as the required margin/premium for this trade. Just to verify if Opstra was stating the correct amount, I went to Zerodha’s margin calculator page and entered the same trade and the resultant margin requirement was the same amount as what Opstra was stating. But my confusion arose when I noticed the way Zerodha’s page stated the said amount. I didn’t take a screenshot at the time but it was something like the long option was mentioned as having 0 amount and the short option was equal to the exposure margin. So that made me think that perhaps we are supposed to pay for the long option in full cause that’s premium not margin and on top of that, we are supposed pay the exposure margin extra bringing the total amount for executing the trade to be 57422. But I am confused as to what the case really is. I am only paper trading at the moment and haven’t tried the hedged margin framework yet, that’s why I am asking. Would be really helpful if my query is clarified cause then I would know better how much margin to bring in when I trade for real in future. Thanks.
Can someone please answer my query? I need answers.
P. S. Let this reply be published so that it can be seen by others and my doubt can be resolved.
Here’s a screenshot of basket order for same trade:
The required margin to place all the orders in the basket you will need Rs. 59.7k (Required Margin), once all the orders in the basket are executed funds blocked will be Rs. 52.3k (Final Margin).
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Thanks for answering to my query. That clears up the confusion. Though, it seems illogical for SEBI to charge exposure margin on a completely hedged trade instead of simply the maximum possible loss as is followed overseas. But I guess that development may take place in future. Anyway, thanks again.