Comment on Option buying: The riskiest trade out there

Godwin commented on 02 Jul 2021, 02:24 PM

I meant in order to create a carry forward hedged short position in basket order, the short position needs to be placed first which requires more margin. Instead if the same basket is created with intraday Long position first(as far OTM buying in allowed in MIS) and then the MIS short position next, the margin requirements would be lesser and when it is allowed to be converted into NRML position before EOD the peak margin requirements would be around the same right. So If I am right Kite shall allow only hedged MIS position conversion to NRML position(if possible) and not naked Long positions. And when the position needs to be squared off the client could exit the short position first and the long position next without breaching the margin requirements.

View the full comment thread »