SPAN margin for a hedged postion

[ShubhS9]

@Alpha_AA

Q1)- while buying any new stocks for overnight delivery- how much approx % funds is needed on this T day of buying and balance amount one can deposit in how many days – is it T+1 day morning before 3pm or by T+1 day end of day before 11pm

For buying stocks for delivery, you will need the full amount ie. price * quantity.

@Alpha_AA

Q2) Stocks settled and in demat- —> If we sell holding stocks which are already in demat-- T day -80% funds available from selling on T day can be used to take same T day new stocks delivery overnight or F&O positions overnight or only allowed for intraday trades, and if its only intraday - > is there a penalty if delivery overnight is taken on this T day for new stocks or F&O positions overnight

You can use the proceeds received for delivery trades as well both for equity and F&O.

@Alpha_AA

Q3) Stocks in transit and is T+1 day —> If we sell these stocks which are in transit on T+1 day which have yet to come to demat on T+1 end of day-- approx how much % of funds will be available from selling on T+1 day morning and can it be used to take same T+1 day new stocks delivery overnight or F&O positions overnight or only allowed for intraday trades, and if its only intraday - > is there a penalty if delivery overnight is taken on this T+1 day for new stocks or F&O positions overnight

80% of the sell value of the proceeds from selling T1 holdings (stocks bought the previous day and yet to be credited to the demat) can be used to buy new stocks for delivery. However, only 60% of this selling value can be used towards F&O. To learn more, see: Update 4th Aug 2020 - Margins for trading stocks & Intraday leverages

@Alpha_AA

Q4) Squaring off intraday or old overnight position-> option sell position CEorPE / Futures Long/Short position- all funds released can be used to do anything - new stocks delivery, new F&O positions overnight, intraday-- is this right , please confirm?

Yes, this is right. However, any intraday profit you make will be available only on T+1 day.

@Alpha_AA

Q5) Squaring off option buy position CE or PE intraday- all funds(original amount + profit) released can be used to do anything as its intraday option buying , also original amount and not the profit can be used to anything or its also not allowed (anything means = new stocks delivery overnight, new F&O positions overnight), – please confirm? if not then is there a penalty if delivery overnight is taken on this T day for new stocks or F&O positions overnight

Initial capital will be available for trading in any segment. The intraday profit however will be available only on T+1 day.

@Alpha_AA

Q6 ) Squaring off option buy position CE or PE old carried forward overnight position- all funds(original amount + profit) released can be used to do anything , also original amount and not the profit can be used to anything or its also not allowed (anything means = new stocks delivery overnight, new F&O positions overnight), – please confirm? if not then is there a penalty if delivery overnight is taken on this T day for new stocks or F&O positions overnight

No, the premium received from selling option can only be used for buying options on the same day. It can be used for all other purposes from T+1 day.

You can also read this article for more details:

What changes due to the new upfront margin requirements?