Strangle Margin for Nifty F&O

[Meher_Smaran]

Hi @Chandra_Reddy1

This is due to the 3% extra extreme loss margin which is applicable to those OTM contracts which are more than 10% away from previous day’s close. You can more on this in the below post

How is the margin updated?

Hi @Roy As per rules stipulated by the exchange, An extra 3% extreme loss margin is applied for those deep OTM contracts which are more than 10% away from the previous day closing price of the underlying. Hence, Selling 17000 PE would require higher margin than say, 17500 PE which is still within 10% from previous day’s close. [image(1)]