Why Retail Trader can't benefit like big Traders margin requirement

[MAC]

If naked call write require ‘X’ margin i.e span+exposure-premium received & if naked put write as ‘Y’ margin i.e span+exposure-premium received.

Then why does Short strangle has margin requirement is ‘X+Y’….what is the use of this stragery when we can’t take margin benefits. (Return of Capital is low for retail due to high margin requirement)

If you talk abt risk management for a broker then in short strangle margin requirement…either the position will be close completely like bearish or bullish ( similar like naked call or put) or between the two strike……then why to charge ‘X+Y’ margin for short strangle it should be X or Y or X+10-15% or Y+10-15%

Allow the Retail Traders to benefit like Big Traders ( in they own capacity keep your risk management at logical level)

Mahesh Gaddamedi.

[nithin]

@MAC

If you talk abt risk management for a broker then in short strangle margin requirement…either the position will be close completely like bearish or bullish ( similar like naked call or put) or between the two strike……then why to charge ‘X+Y’ margin for short strangle it should be X or Y or X+10-15% or Y+10-15%

Allow the Retail Traders to benefit like Big Traders ( in they own capacity keep your risk management at logical level)

Had explained this before, it is nothing about small or big trader. Margin requirement is from the exchange and it is same for all traders.

SPAN margin for a hedged postion

I have a question about margin calculations. If I buy an at-the-money NIFTY put and a NIFTY future, both with same expiry, say April 2014. I then sell an ATM NIFTY call with same expiry. I am essentially trying to setup a put-call-futures parity condition, which is a hedged position. I expect the margin for such a position to be significantly low, but when I calculate the same using the SPAN calculator, I get the total margin for this position as Rs. 31,592 (for strike price of 6700). Can anyon…

[abbanerjee]

Is it possible to place SP, 2l and 3L orders via Kite ? If so how ? The tutorial talks about NEAT.

@Bhuvan @nithin

[nithin]

@abbanerjee

Is it possible to place SP, 2l and 3L orders via Kite ? If so how ? The tutorial talks about NEAT.

@Bhuvanesh @nithin

Currently not possible on Kite in a single order window. You can place orders individually to get into the position.

[abbanerjee]

@nithin: Thanks for the clarification. Will the margin be the same if done via seperate orders on Kite as with SP on NEAT after placing the order ?

[nithin]

@abbanerjee

Will the margin be the same if done via seperate orders on Kite as with SP on NEAT after placing the order ?

Margin is on overall position, so yeah it will be the same.

But in case of calendar spreads through the spread order window, margin benefit is given while placing the order. If done separately, margin benefit you will get only post taking both position.