This won’t break the hedge as your position is in MIS. Though, you will require full SPAN + Exposure margins to take a short position.
No, it doesn’t matter in which order the orders were executed. Your positions will be netted-off.
This won’t increase the margin requirements as hedge is already in the place.
Funds received from selling options can only be used for buying options on T-Day. For all other purposes you will be able to use the funds from T+1 day.
Right. MTM profit from Futures position will be credited to your account on T+1 day and you can use it for any purposes.
Yes, it doesn’t matter how you take the position, you will get the margin benefits.
NSE has discontinued DNE (Do Not Exercise) facility for CTM contracts. So these contracts too are compulsorily physically settled.
Please advise apart from ITM options getting cash settled in indexes (BankNifty, Nifty) and delivery settled in stock, a) what does CTM Close To Money options mean with any made up example for index and stock b) what does this CTM will do , will they be treated as ITM and cash settled for index and delivery settled for stocks ,if they are like ITM why this separate name CTM is there any difference between CTM and ITM?
In Zerodha MCX Curdeoil trading the zerodha margin calculator shows the hedge benefit when trading for example 1 lot Long crudeoil future + 1 lot Long Crudeoil Put- but the same is not shown in the basket margin requirement (like its shown in equity options)
Can you please advise in MCX crudeoil the expiry is how many days before the mentioned date on the contract for future and option like Expiry minus 2 days or Expiry minus 3 days and b) how many days before that actual day of expiry E-2 or E-3 Zerodha increases the margin for Future, Option Sell or Option Buy position
on expiry all options before ATM will become zero in crude oil?
Is there CTM concept in crudeoil like 3 ITM strikes from ATM will be also taken as worthless?
If any option long or short expires ITM or future is not squared off then its cash settled and automatically the net profit and loss will get adjusted (is it advisable if one is in profit to let it expire especially in crude oil)
Zerodha Margin calculator on website shows significant reduction in margin in case of crudeoil on MCX Future hedged with option buy but same doesn’t reflect in basket order margin requirement?
Can you please advise in MCX crudeoil the expiry is how many days before the mentioned date on the contract for future and option like Expiry minus 2 days or Expiry minus 3 days and b) how many days before that actual day of expiry E-2 or E-3 Zerodha increases the margin for Future, Option Sell or Option Buy position
a. For crude oil future & options contracts, we don’t square off till the expiry date if you are maintaining sufficient margins.
b. for crudeoil futures the tender period margin is increased 5 trading days prior to expiry day click here
on expiry all options before ATM will become zero in crude oil?
yes
Is there CTM concept in crudeoil like 3 ITM strikes from ATM will be also taken as worthless?
No
5.a. If any option long or short expires ITM or future is not squared off then its cash settled and automatically the net profit and loss will get adjusted
b. is it advisable if one is in profit to let it expire especially in crude oil
a. yes, the crude oil contracts are cash-settled. The P&L will be updated on the ledger.
b.
@ShubhS9 / Zerodha team / @Shiva_ms - need one advice, since now stocks settlement is T+1 day
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
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
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
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?
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
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
For buying stocks for delivery, you will need the full amount ie. price * quantity.
You can use the proceeds received for delivery trades as well both for equity and F&O.
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
Yes, this is right. However, any intraday profit you make will be available only on T+1 day.
Initial capital will be available for trading in any segment. The intraday profit however will be available only on T+1 day.
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.
