The system is already there and implemented at broker level.
See the three images
Margin required changes based on risk if you are doing futures and covering with options. I am a bit surprised at the 3rd image though!
But with options like IC and butterfly margin required is exponentially high!!
@Umar your argument should hold true incase of futures also, isnt it? I am not arguing. Just trying to understand the rationale behind having 1.5L extra margin amount with the broker when possible loss is only 4-5k. (from my previous reply)