Comment on Calendar Spreads

Harish Naidu commented on 28 Jul 2018, 12:28 AM

Hi Karthik Sir

I have a Doubt Regarding the Margin Amount that will be blocked while executing the calendar spread strategy in Same Stock Future for Different Expiries (Carrying the Position Overnight) :

Example:-In My case Stock Future is PTC

1)Sold PTC AUG 2018 Month Contract
2)Bought PTC SEP 2018 Month Contract

I have checked the Margin Requirements in Zerodha Margin Calculator and found out that Margin comes to around:
1)Sold PTC AUG 2018 Month Contract -Rs.89,340
2)Bought PTC SEP 2018 Month Contract-Rs.89,220
Total Margin Required Comes to Rs.1,78,560
In Margin Calculator ,it shows Margin Benefit as Rs.1,59,913 in Green color
And Under Combined margin requirements ,Total Margin is Rs.18,647

So,My Doubt is Whether Margin Benefit will be Provided by Zerodha ,even if we hold Position Overnight or till expiry of the Contract i.e Will Rs.18,647 is Blocked as Margin for Holding Position Overnight or Will Rs..1,78,560 is Blocked as Margin for Holding Position Overnight.

Hope you clarify in this Regard

Harish

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