New margin framework for F&O trades
This has been a long time coming, but NSE is finally going live on Monday, June 1st, 2020, with the new margin framework for future and options trades Our F&O margin calculator is updated. Enter sample F&O strategies and see the new margin requirement for yourself.
Check this below example of margin required for a bear call spread.
Margin for a bear call spread
The margin required for a bear call spread is now just Rs. 21,800 with margin benefit of Rs 1.05 lks, almost 60% lower margins than what was required earlier.
Here are the important things to know
- As is evident in the above example, the margin required for positions that hedge each other where the risk is capped drops dramatically. The potential yields for such low-risk strategies will go up significantly. For strategies like Iron Condor, the margin drops by a whopping 70%. With this, we are most likely going to see a new breed of risk-averse traders in the market, which should significantly increase the open interest, improve market depth, and lower impact cost for traders.
- Price scan range which is used to determine F&O margins is now changed to 6 sigma from 3.5 sigma. What this means is that when markets are volatile, the margin required for naked positions will be higher than what it was before. This means that since we have had maybe the highest volatility after a very long time in the last three months due to COVID-19, the margin required for naked positions is up by ~20%. But this will reduce as the volatility in the market drops. The higher PSR means that there won’t be a sudden spike in increase or decrease of margin going forward, it will be gradual.
Note: If you held open positions at the end of day Friday, 29th May, your margin requirement will change on June 1st on Kite. If you have any naked positions, the margin required will go up and you’d be required to add funds to maintain this additional margin to avoid positions being squared off. If you have hedged positions, the margin will reduce.
Check this presentation from NSE for more information.
If you have any questions about the new margin requirements, please post them here.
Happy trading,
Hi,
If I have sufficient stock balance in my demat and sell naked call option of that stock, than still require additional margin in expire week? Plz confirm.
How much margin benefit I can get if having position of 1 lot future buy and 1 lot call buy of same underlying and same expiry?
Hey Moin, you can easily check the margin requirements using the Margin Calculator or using the Basket Order feature on Kite.
Why overnight margins for equity options are high but not for index options??
I am have 50% margin as collateral and 50% in cash, If I am doing a calendar spread, the margin required is around 35k for nifty, I am having a total margin of 40k. As the days passes I will be incurring the loss in the option which I have bought and will make profit in the option which I have sold. Will I be asked to add more funds? Will the margin requirement increases? Will there be any margin shortage as I will be holding it overnight for many days??
I have a bear call spread, the span & exposure margin increased 3 times on Friday 9th July. Is there is any way that we can see Margin details by security.
If i sell xyz future @1000 and buy a 1100 CE for hedging , lot size 1000 for both….then it will mean my max loss is rs 1,00,000 ……
Let say i have rs 15,00,000 spare in my trading account also and short squeeze happens in that xyz stock and its price became 5000 …..
In case of nakes future selling its 40,00,000 loss but with hedging its only 1,00,000 total loss….
So my question is will i still get margin call in this case? As my xyz future is at 40,00,000 loss but my account’s total loss is 1,00,000(trading account balance is 15,00,000).
IS THERE ANY WAY TO CALCULATE MARGINS IN COVER ORDER FOR NIFTY FUTURE INTRADAY. IS MARGIN DISCOUNT AVAILABLE THROUGH COVER ORDERS FOR NIFTY FUTURE INTRADAY.
I sold 14700ce and hedged with buy 14800 ce . And Market move against my trade . In this scenario how to calculate extra margin will require but how to calculate it.
Margin computations aren’t straightforward. You’ll have to use the SPAN software to check this.
Unable to find nifty and banknifty weekly expiry in margin calculator, it only shows monthly expiry, how can i calculate margin for weekly expiry if it not show weekly expiry
Dear Team ,
I have bought NFO Maruti normal for 16.40 it is executed for the same limit price buy it has taken margin for 19.40 ,kindly slove my problem.
say i buy nifty future 1 lot and buy 2 put atm …i get some margin benefit. will it remain throut this margin policy
say i sold atm cal or put n buy otm call or put in nifty margin reguirement is around 25000 will it be same in dec 2021…after 100% rule or it will change if it changes how much will be the margin then
The NRML margin would remain the same.
Margin sabhi ka same ho gaya to BO order open karein.pls.
Pls. Open BO order position
Bracket order & cover order when will be opened
what will be the problem to open volitile situation also pl clarify
This is about index if we have a hedged position in any script eg. reliance, ( bajfinance ) the margin benefit or requirement will remain same on expiry day or it is more like naked sell position, please reply
Hi,
If I am holding 100 shares of company X and I want to sell it using the CNC order type and give delivery, will I need to keep any margin at all?
Thanks.
where can we find the new way to pledge/unpledge shares,also is there some change in the way Liquidbees are treated?
Can we get margin benefit for future by using weekly options?
Eg : Buy Nifty Aug Fut
Buy Nifty 20th Aug PE
Can i get margin benefit for this?
In the example you have stated the following
SELL 9600 CE and BUY 9700 CE
SPAN: 7,437
EXPOSURE: 14,370
TOTAL MARGIN: 21,808
MARGIN RECEIVED: 3,581
The total risk taken is ONLY 75*100 (diff between 9600 and 9700) = 7,500
On top of that premium received is 3,581 thus MAXIMUM loss in this trade is 7,500-3,581 = 3,919
BUT still the margin required is 21,808
WHY
Manoj,
SPAN covers the maximum risk of the hedged position. However, SEBI mandates exposure margin to be collected at 2% of the contract value for index and 3.5% of the contract value for stock F&O. This is included to ensure that additional liquidity risk of the hedged position is covered. For example, you can close the long 9700 CE leading to unlimited risk for the short call(9600 CE).
Sir, I sold one lot of BATAINDIA AUG 1140 PE, I need to know how I can take the physical delivery of shares, If in case contract becomes In the money and I don’t want to realize my loss.
You will need to have full contract value on the expiry day to take delivery.
sir, please tell me how to get the benefit for the hedged trades while placing order in ZERODHA
In which sequence we can place order to get margin benefit
1. Buy option then sell option
2 Sell option then buy option
Buy first, then sell.
It is a pity that Zerodha has been reducing the features and becoming unpopular now with traders.
1). Start BO/CO asap
2). Pi software crashes every now and then
3). Offer monthly unlimited trading with a fix brokerage plan
4). Offer more intraday margins for index trading
Hi, can anyone let me know Zerodha allows new margin policy?..if not better to go to a new broker ….I have seen many queries above but no proper answer is given..Is Zerodha becoming complacent ?
Can you tell me how much margin required to buy Nifty 10200 PE July (monthly) and sell Nifty 10000 PE July (monthly)?
Today checked it in margin calculator and it showed me “Total margin ? Rs. 15,352” but when I bought 10200 PE and then tried to sell 10000 PE, it rejected sell trade giving the reason as “Insufficient funds. Required margin is 140854.95 but available margin is 42611.11”
Is anybody there to answer my question or just ignoring?
Hi, can anyone answer above question?
Same thing happened with me.
I bought BNF Aug Fut the for hedging i bought PE at ATM
But When i placed buy order of PE it shows Insufficient margin.
This result in loss
will hedging reduce margin requirement for usdinr option trading?
Today I checked margin requirement for HPCL (call spread) 240 CE buy and 250 CE sell (both July series). Zerodha margin calculator showed me 22k as required margin but when I bought 240 CE and then tried to sell 250 CE, it rejected my order saying margin requirement is 39k+. Can you tell me what went wrong here?
Did you have any other open positions? Margin requirements are calculated based on all open positions and orders.
No, at that time, I’d already closed all my trades to trade call spread
“Please note, for the execution of both the orders you need to have the total margin required in your account which is Rs.175747. Once both your orders are executed this margin benefit amount of Rs.153554 will be released back to your Kite funds.”
This is the reply which I got from Zerodha customer support desk. If I have to keep full margin, what’s the meaning of reducing them.
Agree, This margin system is totally useless.
Hello Zerodha Team,
Last week there was an issue of Automatic balance deduction from my account. I have raised ticket for this issue as well, still i am not getting any positive response from Zerodha!
Balance on 9-Jun-2020, Rs. XXX
Balance deducted on 10-Jun-2020, Rs. 1549, Without any trade
Balance deducted on 11-Jun-2020, Rs. 1553, Without any trade
Balance deducted on 12-Jun-2020, Rs. 611, Without any trade
Total Balance deducted during (10 to 12 June) is around Rs. 3693 /-
Request you to please give details about the breakup along with an explanation on balance deduction.
Is any other User faced similar issue?
HI Team,
For Hedged Position, if I wish to carry forward overnight can you please clarify should I maintain 1L plus like earlier case or just some buffer amount(10 -15K) to total margin is sufficient? And if with 40K amount in account will I be able to sell a CE/PE and then buy PE/CE ? How can we place such order when we have less amount in trading account?
Hi Karthik
In your margin calculator tool, I can only see upto Aug expiries for Nifty whereas Dec expiries are very liquid and I wish to trade and see margin for a hedged trade.
Can you pls ask your team to configure at least 5-6 month out expiries for Nifty ? (Banknifty, I understand, is not liquid max beyond next month)
I took a margin indication for a Dec expiry trade based on Aug expiry but I would like to be certain.
hi Zerodha Team
I am not able to buy 10%-15% range of nifty as your restriction.Is is possible to allow some client to hedge their straddle position(now open to unlimited loss) ?I want to make short iron butterfly spread to limit my loss.If it allowed,then lower margin will be required for the same as per new margin rule which is effective form 1st Jun 2020 and it will allow to trade more volume which will be beneficiary for both zerodha and their client.
Thank you
Mukesh,
We are working on allowing buy positions for clients who have short positions in other strikes for the purpose of hedging.
Hi Zerodha Team,
Just wanted to know that margins are getting reduced by hedging (buying OTM options) for each Sold positions, but zerodha does not allow buying of OTM options 1% from the spot, so how this margin reduction is going to be effective for Zerodha Users. With this kind of volatile market, option sellers can not hedge all their position in Zerodha.
Regards,
Hi Karthik
Read few comments above – can you please confirm that the trading terminal (Kite) is in sync with the margin calculator and not continuing to charge previous margins?… if it is not, can you please advise by when it will be?
Hi Karthik
I think there might be a mistake in margin calculation for a vertical spread in your calculator…i tried multiple different combination and for everything, it shows the net margin required = 15070….even where the max possible loss is 30k, it still shows the max margin required as 15070….
Can you please clarify this….and margin of 15k and 30k changes the yield by 50%
Regards
I saw the new margin requirements for Bull call spread. I placed buy CE others first and then tried to sell higher strike CE, it showed margin insufficient. Incurred huge losses on that buy position. Please give explanation for why margin requirements are not updated. Atleast, a small notification that, zerodha is not able to provide new margin requirements or will provide at a later date, would have saved many retailers.
Upstox is working according to the new margin requirement without any hassle.
in upstrox can i trade long condor strategy with 30,000?
No, you cannot. Before taking trades you need to put the full amount and after trades got executed only the margin amount will be blocked and the rest amount will be released.
These margin systems are bogus.
For marigin benefit how to place the order for Iron condor or Iron butterfly.
Can anyone focus on this. suppose the amount in account is 30k is it possible to execute the order.
Margin for hedged position was working on 1st June. Now it is now working as per the margin calculator. I tried for SBIN Butterfly strategy. Buy one 190 call sell 2 200 calls and buy one 210 call. Margin calculator shows 37000 but the trading terminal requires 1.36 lacs. Pleas explain
Similarly Bear call spread Selling 200 call and buying 210 call shows 46000 in Margin calculator and the terminal requires 1.4 lacs. Please explain and rectify as soon as possible.
These margins are useless, they require you to put the full amount before taking trades and as soon as your trades are fully executed, only the required margin will be blocked, and the rest funds will be released.
how can i trade long condor with new margin. Today i trade in bulk order for long condor it shown error regarding margin, in my account i have 35 thousand and for this strategy only 30 thousand required so kindly guide how can i posted that strategy with new margin
BO chalu karo pahile
Today – 04-06-2020 Banknifty option price were not right, was unable to exit from trade and made loss. Stop loss and exit order stucked. Now who will be responsible for losses?
Technical glitches were there from Exchange side, than why Zerodha accepted buy order?
Final Note from my side – Today was the last trade from my side using Zerodha. i will close my account with zerodha and will recommend other also.
It seems that starting June1st, the Gross Exposure Margin has been increased from 2% to 3% of the notional value. Can you please confirm if this is the case. If so, then your updated SPAN margin calculator is still showing Exposure margin using 2% and needs to be updated to reflect the change.
Banknifty spot: 21000
Position: Long Jun Future + Buy Put Jun 21000 strike
Here risk is 0. Margin required is shown 8600. So do i have to just keep 8600 in my account or 8600+full option premium payable?
Dear Zerodha Team,
For the last two days i am placing my orders in MIS but no benefit of margin is given to me for intra day sell nifty options instead u charged full margins. Pl chk my trading account is WW3887 n revert urgently pl.
Please update your f&o margin calculator with weekly expyries so that the margin can be calculated for short term strategies. Currently only monthly options are available. Thanks
I was shown a margin requirement of ~Rs. 15K to buy a 10100 PE and sell a 9900 PE.
I had a margin of 60K in my account.
Since execution of both the trades is not possible in one go – I ended up by buying the 10100 PE first and when i placed the order for selling 9900 PE, I received an error message saying that margin is insufficient!!
How is this possible?
Are your systems not updated?
Sir, although I have submitted my 6 months updated bank statement why cant i activate F&O segment. Is there any eligibility criteria for the same..??
Zerodha cheating with their customers with this circular… nothing changed, margin required same as previous for any type of hedge positions… but margin calculator shows less margin with hedge positions .
Hi,
Are you sure Margin are reduced for Hedge position. I don’t think so it is asking for same amount that was there in last month for creating the hedge position.
Dear Zerodha team,
Need your justification for not informing traders like me about implementation of this rules of changing margin in F&O well in advance. I don’t believe that you came to know about this change on Saturday night when market was close. Before 30th May, 67000 was credit in my account and I did rollover of Biocon (2 futures) & Bharti Airtel future. But suddenly on 30th may it started showing shortage of fund by 2.55 lakhs which is ridiculous. Being service provider you should understand and think of your clients loss which they are going to suffer because of this. Also zerodha started sending emails and sms for fund transfer failing which will result in square off……what the hell is that……….how can investor bring such a big amount in just one day that too in this bloody recession period arises due to covid 19…………….this led me to book loss in one of my biocon future to clear the negative margin………….it seems that you only want to earn at any cost….you don’t at all bother about your customers…..if this continues I bet you will be out of the market soon……..many of your competitors are available in market………you know because of your irresponsible act today where I can easily make profit of 65000 in biocon I had to book loss………who is responsible for this………also zerodha today again change the margin requirements of biocon………………r u playing a game or what……………….also since last few days your portal is not working correctly. Today also i tried to change the limit but unable to do so………..now tell us how one can trust you or your portal……
Banknifty monthly june spreads still taking previous margin..why in calculator showing less amount??
Zerodha cheating with their customers with this circular… nothing changed, margin required same as previous… but margin calculator shows less margin with hedge positions .
What is cdsl…..?I m selling my stock it not going on…..thn I try to go on cdsl there also showing error 502…..you don’t have proper server……in this comment section thr no option for image upload I wil show ….what is going while you change all this thing….
Hi Team,
Taking example of Iron condor, will the margin go up in last week of expiry as currently happening or the margin will remain same till expiry as start of the month?
Thanks.
can we expect multileg orders in near future?
really happy with the new margin statements,, thank you zerodha.
it indirectly means high leverage only for heged positions right ?
Dear All,
Can anyone comment suppose I have 60k in my Trading account.
a) Can I place the above mentioned trade on Zerodha Kite?
b) Can I carryforward my positions?
Regards,
Hi
Is there a way to place all the sell and buy options-orders together ( both pe and ce sell and buy at once.. ) in kite. ( with out going to sensibull.. ) when is Kite going to get this. This is a major drawback in kite web.. Iam not sure about PI, since i use Linux.
will the margin calculate shows the weekly option strategy margin? Till now it s not showingweekly margins. please update for weekly margins.
I didn’t understand what’s rule implement just tell me one thing can buy crude oil mega on capital 5k..??
Thanks for the update!! Is there a way to enter the spread orders at onego in any Zerodha Platforms rather than individually selecting the different strike price and creating a spread orders. Like the platforms in TDAmeritrade for US Stocks the Option strategies like Straddle or Strangle or Vertical spreads can be created by clicking the order strategy and it gets executed spread orders.
I have a naked position. I sold SBIN 120 PE on 29th may. Pls tell me how much margins will be required for this form 1 June.
I couldn’t find any advantage of you buy future with put. It’s also hedged position right?
Hi,
Is this is officially announced by NSE?
can you share the link?
Hi,
I have sold 16000PE & 21000CE (BNF- June Monthly expiry). Total margin used is 78329/-.
Will it increase or decrease on Monday (1st June 2020).
Help me on this to understand it further.
Is this reduced margins applicable to weekly options also
Please add weekly expiry options in Zerodha margin calculator
Now we have to place the order in live market for weekly expiry options and cancel it to know the margin requirement
Trading with zerodha platform have been hectic. they do not good margin facilities for Option selling, you should have almost 100% fund for it, even the trading range also decreased compare to Aliceblue and Angel broking and Astha Trade even carry forward margin also available but not with Zerodha your position get squared off on same day.
If you plan to trade with zerodha you should have 100% amount of your planned strategic.
Sir I see no change in margin for Bull Call Spread strategy. Is it not applicable or there is some error in calculator.
Zerodha and Fellow traders:
2 questions:
How will this impact anyone trading banknifty expiry day trading using *MIS* option to sell?
Since the trading is intraday on expiry, do i now have to buy junk options far off just yo get MIS margin benefits?
Thanks
Axis bank June future I purchased 1 lot and on 29 I carry forward for next day that was shown on NRML
Sir I carried Axis bank rs 392.40 on buy side n my Free margin available Rs 40000/-
Will I add more fund for this or position will square off? My total balance is 230000/-
Plz reply
Sir, please give me some details, explanation, various type of option Hedging position, which is required the new margin facilities by Exchange. I want to know only Bear spread or Iron condor is this category or all heading strategy?? Other hedging position what’s margin required?
Dear Sir,
you have shown an example of the marging benefit in Bear Call Spread, I like to get margin benefits to other strategies eg. bull call spread, bear put spread etc.
Further marginn calculator may also be introduced for weekly options.
Please also confirm how i can place bear Call spread simultaneously. Is it possible with basic or free subscription on Sensibull-Kite page ?
The new calculator is not adding some contracts. Suppose I have sold 76 CE and the try to add long 76.25 CE. It shows an error that it’s already there. Kindly look into it.
Also a request can we have weekly expiry dates too into the calculator. ( helps in setting pin point margin requirements)
Will the MIS margin be applicable after this margin ?? Like in this example the NRML margin is 21,808. In MIS will it be given for 40% or 50% of NRML ??
if I am holding only a 10000 CE (25TH JUNE) of Nifty – then there is no change in margin right? i purchased at 82 so the margin is same as 82×75. Am I right?
If I have short positions in monthly and bought weekly hedging positions to cover risk. Do we get the margin reduction, or we get the benefits if hedged in the same expiry?
Thanks
where will be the exchange circular available for this, pls provide link
how to place Basket orders from kite, please enable.?
Dear Sir,
I have one naked open position. I have sold BANKNIFTY CE OTM Expirty on 4/6/20. To get margin benefit can i buy one call option of BANK NIFTY on Monday morning?
Please advise.
Thanks in advance.
Why Market orders, SLM orders are blocked all the time?
I have bought one lot of 2400 shares of ITC in F&O in June series and I would like to take delivery of the same on expiry. The company is expected to announce its FY 2019-20 results and dividend will also be declared. How will I get the dividend, if record date for dividend is declared before June expiry?
Does it apply to weekly expiry also. ?
And if short strangle is considered naked or not? What will happen to margin requirement in case of short strangle?
Immediately square off order will be seen immediately.. option seller without hedging will lose money..it is advice immediately do MIS so that u can be saved..or do hedging buying loss option
Please add weekly expired nifty and BankNifty margin calculator.
If i buy 9500 Nifty future and sell Nifty 9600 CE, will it be taken as hedged with low margins?
Is their any benefit for short strangle (Deep OTM) strategy?
I also have this question
I have sold NIFTY 11000CE 25 JUN on 28.05.2020 and initially around Rs.65700 amount has been blocked but still available margin is showing Rs.-523.Please tell me why?
U r long.( Already payed full premium )..then why it will squared Off…
The calculator is not updated yet still showing old margin better to check it on Monday.Zerodha please make sure your margin calculators are updated properly.
70 percent less margin will be required?your nfo calculator is not showing data for banknifty options
Good.
How much margin I need if I have to sell 9600 call and put on Monday.. I want to keep the position for few days… How much money I need?
Zerodha will u reduce expiry day option selling margin?
Is this increased margin applicable for intraday (MIS) trade in nifty & banknifty futures and intraday option selling also? Please confirm
Can anyone tell me for stock options since all fno stocks are in physical settlement we need to maintain margins for in the money options four days before expiry, now this rule continues or is discontinued nse circular is not giving any clarity
my bank nifty 18300 PE buy open positions..with 20 qty..and I have 2000 rs available margin..will my position squared off automatically on Monday??
U r in buy side know… Means u r already paid full premium…hence it will not get squared off.
To calculate the margin, Zerodha F&O Calculator list only the monthly expiry and not the weekly expiry.
I want to take trade as below.
NIFTY JUN 9300PE (Sell)
NIFTY JUN 9800CE (Sell)
To avail the margin benefits, should I always Buy the Scripts as below
NIFTY JUN 9000PE (BUY)
NIFTY JUN 9900CE (BUY)
OR
Can I also buy the scripts in the weekly expiry as below and still avail the margin benefit. Please confirm
NIFTY 04TH JUN 9000 PE(BUY)
NIFTY 04TH JUN 9900 PE (BUY)
I have the same question seems no response on this. How does kite web application determine the margin for hedge positions as kite only allows single order at a time and no strategy build orders..
This minus amount showing your penalty
Do I need to have higher required margin before placing order and then I get margin benefit?
If no then do I need to place option buying order first?(because selling option first would require higher margin)
please allow multiple option to buy and sell at one go in kite rather than acting individually, mean basket order for option strategy that cover all strike price order at one go. please do that fast, very much thankful to all of us
Zerodha don’t work for benefit of small traders, they are playing in hand of big operators.
Please enable December Nifty options also
Any changes in MIS margin requirements?
NSE n Brokers association should give advance notice an give some time in advance to people. Suddenly showing a negative margin and forced square off will not work.
As a trader, I agree with you. I’m not sure whether Zerodha posted any content on this but, I think the circular was released on May 15, 2020 by NSE with Circular Ref. No: 072/2020. It was originally sent on February 24, 2020 then modified some terms.
It won’t be useful. Anyway we have to buy and sell as different orders and it leads to Balance should be 1.27 till orders get executed. It remains worthless until Brokerage innovates to place Spreads in single order like other countries allow.
Please allow bracket order as soon as possible. No sense to block bracket order.
Why margin calculator says u have already added this contract when I add 10000ce of 25 jun expiry and 10000ce of 4th jun expiry??? How will I check margin for calendar spread??
Selling 9500-CE requires total margin of 1.33L
Adding to this trade, if I sell a 9500-PE, the total margin increases to 1.48L only, thereby giving margin benefit of 1.1L
Why is this so, when this is a unlimited risk position?
U r risk exposure to one side only…hence it is taking 1.48 lac…
Are we able to place basket order from Monday onwards to avail reduced margin?
But please allow selling little far OTM options. Otherwise we have to find another broker.
I sell a call option 9600 of 25 June and buy call option 9700 of 11 june . Again on 11 june rollover the position and buy 25 june 9700 option.
This strategy is eligible for reduced margin .
Wow!. One request was to provide an option to calculate weekly margin requirement in your calculator. Please.
Sir, How to place order in zerodha kite hedged options at a time
The improvised version of ChartIQ in kite Mobile trading App has not been proving flexible enough comparing to its previous version.
If the earlier version could have been restored once again I would be obliged.
I agree with you. Updated version is not working properly. We need old version on chart iq
If I have physical shares in the account equivalent to a lot size and I sell the otm call of that equity (covered call), will the margin for selling call go down?
Waist of time zerodha charge full margin telling just lie try in u ac then how much margin they charge….zerodha
When will we can expect basket orders ?
Selling strategy margin Jada lagta hai
Zerodha margin calculator doesn’t show new margin benefits for all FnO stocks, but only Nifty. Please clarify.
this margin is only for call spread not for put spread or will work in both call and put spread.
Yes i can already see the margin benefit for my bull call spread, but there is no way to know the margin requirements for weekly expiry for index.Can you please resolve this ?
This ask is of Utmost importance @Siddhart ,
with out clear info on margin requirements on Weekly options its will be difficult to plan trades
seek support here Team Zerodha
sir please add weekly expiry also.
As per my knowledge, this margin benefit is only for long term hedged options.
I want to sell 7800 put 25 jun expiry @18rs 2 lots, nd i will buy 8000 put @23 1 lot, present it’s showing margin is 75111 I’ve 80000 in my account, in coming days the margin will be go up or stable, bcoz i dont want to square off my position till expiry pls tell me.
Sir pls rly
May be increase
Do not take this stratergy. It is wrong.
Instead buy nifty 9700 put jul and take 2 buy lots of 9400 ce option for june. This will give you maximum profits and secure your targets for 15600 minimum.
The new framework will be of use only if you allow deep OTM option buying in index otherwise our margin requirements will go up forcing us to migrate to other broker platforms
You are absolutely correct and it buying near the money options for hedging reduces our profit. I’m already signed with up new accounts with other brokers since zerotha don’t provide that facility.
Is this applies to only Index option strategy or with Stocks as well. If any stock option is bought and if any stock is sold than will the new rules apply to this as well.
I am pretty much sure that this margin benefit in case stays gone a be havoc in terms of volatility and govts gona a hefty stt on the same .
Exactly , my thoughts.Govt going to milk anything which runs.
Great news….Now please allow to place these order at one go in same margin mentioned instead of first buying then selling the option , that would be very helpful
yeah put all strategies in one go
But if I am not wrong then for that we need full margin initially, the reduced margin would be applicable only after order gets executed
What you can do in this that while applying this spread strategies, you can buy first and sell second.
But this may cause decrease in spread due to different time execution
If I Buy hedge first and Sell second will i get margin benefit at the same time ?
sir
the new hedging margins , effective 01-06-2020 is not applicable for weekly options !! . please enlighten
you are wrong itts also applicable for weekly
Sir, assume I have 50k in my account, I buy NIFTY CE after that I SELL CE, now margin required in 32k … Is 50k capital enough for doing one lot Sir..
Hey Sagar, you can use the Basket order feature on Kite to calculate the margin requirements for spread orders. This will tell you the margin required to place the orders in the basked as well as the final margin figure that will be blocked once all the orders are executed. More on basket orders here.
Sir, What is the difference in placing in same order vs two different orders? Could you please explain?
Please introduce Basket orders screen, it will be useful to place multiple orders in one go.
Thanks
Yes, this is on our list of things to do.
I have position in Nifty 10700 ce naked Selling….so on Friday my free margin was 1.25L.
And, now showing -1.01L.
So, it will create any panelty for me…..even if I will close my position on 9:15am on 1st June 2020 Monday????
No
Sir, assume I hve 50k in my account, I buy nifty 10100 ce after that if I sell 10000 ce, now margin required in 22k approk… Is tat 50k capital enough for doing one lot of hedging sir..
sir assume Nifty cmp 11467 n i bought 11000 CE and sold 11200 CE how much capital required ?
and if my sell position in loss 50% of my capital invested in above buy and sell then zerodha break the position ?
Many naked sellers are gonna be hedgers.. by a result, i think it’s difficult to differentiate real selling points and hedged points in option OI chain
-10 Se -667 kaise hue bina trad kiye or trading karo tb b Bhut jyda charges cut hue wHy?
For a bull call spread, the sell CE option should be of a higher price. I think there’s a mistake in the pic given.
Please check.
Sir, this is bear call spread
It would be interesting to see if BO and CO are opened further
What margin will be required if I am selling 10300ce and 9400pe when nifty is at 9825
Please tell margin will be increase if you take a position in debit spread.
Hey, the margin reduces if your position is hedged. You can easily check the margin requirements for various strategies using Margin Calculator.