Basket Orders Margin Explanation | |
Required Margin: The essential fund needed to enter the order. It represents the margin without factoring in the hedge position. | |
Example: | |
1. | Let’s say you sell one lot of Nifty 19900CE and one lot of Nifty 19500CE, costing approximately ₹2,00,000/-. In this scenario, the Required Margin stands at ₹2 lakh. |
2. | Introducing a hedge position, like buying 2 lots of Nifty 20000CE, can alter the Final Margin. Suppose, due to this additional hedge position, your Final Margin decreases to ₹45,000/-. Here, the Final Margin is ₹2,00,000/-, but the Required Margin is ₹45,000/-. |
Note: Final Margin isn’t an extra margin but rather the amount blocked from the Required Margin once the basket order is executed. |
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