Why zerodha asking for full margin for hedge trades?

Zerodha
1

Received a reply from Zerodha to me.
“you will get the margin benefit, after you take the position. While taking the position, you require the full margin.”
Means I should have 4 lacs in account to get margin of 35K.
Where is the Margin benefit or advantage for retailers than ?

2

What type of trade are you trying to execute?

For Options: When you take Short Position first, you require full margins, margin benefit is only provided when your Long Position is executed.

Alternatively you can execute Long position first and then Short, this way you will get margin benefit beforehand.

For Futures: If you are going Long or Short you require full margins until you Buy Put or Call to hedge your position.

Here too if you are going Long on Futures you can buy Put first and then Buy Futures to get margin benefit beforehand, if you are going Short Futures then Buy Call first then go Short Futures to get margin benefit beforehand.

1 Like
5

Look like After position is taken you will get benefit in this case, anyhow try to sell 1 option first, later one more. Margin benefit is clearly visible if long options are involved.

6

Hi Siva,
Can you explain clearly if Zerodha gives new margin benefit?like if I have July month end expiry 10500 put buy position , I only need 15000 as margin for intiating a 10000 put write position?..explain pls beacuse I am hearing from diffrent posts that sometimes Zerodha is asking full margin …if that’s the case whats the benefit ??

7

Did you tried placing order and check by yourself?

8

Sorry …but I saw a post and no one replied to it …will try myself in 2-3 days and let you know if I face any difficulty

9

Hi, if you are trying than try to keep the minimum Margin amount, say your entire hedge trade cost you 40k, than try to execute your trades with that margin money only. If it works let me know too.
Bec for me it didn’t worked. My 2nd trade got rejected Bec I didn’t had the entire margin of 2.8L to sell 2 lots, even though I had bought Call options as my 1st trade.
I don’t know how you guys do it.

10

What is the position you tried to take?