Required Margin vs Final Margin?

F&O
1

If the required margin is 500000rs and final margin is 400000. Do I need to have 500000 margin my funds or can I go with 400000?

2

You need to maintain the required margin i.e 5,00,000 /-

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3

Initially you need to maintain the required margin, and once the basket is executed, final margin will be blocked.

4

then its useless. your final margin amount will be blocked but you should still have the required margin in your account.

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5

You need to have sufficient required margin to execute all the orders. Once all the orders are executed, you will get margin benefit which reduces the margin requirement. This is why the final margin is lower.

6

@ShubhS9 One more question. Let’s say I have multiple option postions in different (strategies, instruments and expiries) Is there a way to check breakdown of margin blocked everyday on each grouping of strategy as it will be easier to calculate ROI on that strategy. Also, say I have multiple options strategies running, how to view P/L on filters. Based on my current understanding, when you do a filter in the postions tab of kite, the total P/L is continued to be shown than the selected/filtered positions. Thanks!

7

The margins for F&O positions are on a portfolio level. So it is not possible to show margins for individual position or a specific strategy. To check margin according to strategy, what you can do is add those orders in the basket order which you show you the margin requirement details.

This is currently not possible. You can however tag your trades while placing the order and next day check the P&L for those tags on Console. More on tags here:

8

Pls advise if the difference value between reqd and final margin can be utilised for new trades after deployment.

reqd margin-1,00,000
final margin 40,000
Difference-60,000

can this 60k be used for some other new option or equity or futures trade.thanks

9

Yes, this margin can be used for taking trades.

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10

Thanks for the above response. Would like to clarify one another doubt as below.

Calendar spread of Futures

Scenario 1:
Current month Profit - 3000
Near month loss - 2000
Pls confirm if any MTM settlement to be done from our end

Scenario 2:
Current month Profit - 3000
Near month loss - 4000
Pls confirm how much MTM we need to settle in this case

Futures with hedge of options:

Scenario 1:
Option Profit - 3000
Futures loss - 2000
Pls confirm if any MTM settlement to be done from our end or option profit can be adjusted against future loss

Scenario 2:
Option Profit - 3000
Futures loss - 4000
Pls confirm how much MTM we need to settle in this case

Appreciate your help in responses . Thanks

11

Thanks for the above response. Would like to clarify one another doubt as below.

Calendar spread of Futures

Scenario 1:
Current month Profit - 3000
Near month loss - 2000
Pls confirm if any MTM settlement to be done from our end

Scenario 2:
Current month Profit - 3000
Near month loss - 4000
Pls confirm how much MTM we need to settle in this case

Futures with hedge of options:

Scenario 1:
Option Profit - 3000
Futures loss - 2000
Pls confirm if any MTM settlement to be done from our end or option profit can be adjusted against future loss

Scenario 2:
Option Profit - 3000
Futures loss - 4000
Pls confirm how much MTM we need to settle in this case

Appreciate your help in responses . Thanks

12

Scenario 1, net 1000 will be credited to your account. And for scenario 2, net 1000 will be debited from your account.

In case any profit or loss in futures position, it’ll be credited to or debited from your account. Options aren’t marked-to-market, you realise profit or loss only once position is closed.

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