Important Changes in Margins and Hedge benefit

Important Changes in Margins and Hedge benefit

Changes related to upfront margin collections 

According to the SEBI’s circular, effective from August 1, 2022, all peak margin requirements will be calculated based on the Beginning-of-Day margin requirement. Earlier, margin requirements were calculated 5 times in a day & each time margins were updated following the latest span file!
In light of the same, we will be updating Intraday span margin files after 2PM allowing customers sufficient time to maintain the required margins.

Below list of span margin files will be updated (Reference:https://www.nseindia.com/all-reports-derivatives)
  1. F&O-Begin day SPAN  
  2. F&O-4th Intra-day SPAN 
  3. F&O-End of day SPAN 
Changes in Order level hedge benefit

In the interest of our clients, to help you get the most out of hedge benefits & prevent you from paying penalties for short margins we have done certain adjustments to our systems.

Hedge Margin Benefits on Multi-Legged Strategies – You can now avail hedge margin benefits on the positions by placing the 2nd leg of the hedge “At Market” to get the order level hedge benefit while trading Option strategies like a straddle, strangle etc. 

Below is the example of a straddle for your reference

For Example:
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Margin Required for executing strategies (at limit price)               : ₹327121
Post execution margin requirement (at limit price)                         : ₹186754
Margin Required Now for executing strategies (at market price)  : ₹186754
Post execution margin requirement (at market price)                     : ₹186754

Click here to calculate your strategy margin.

Please Note:
  • Hedge benefits will not be allowed for pending limit orders. It will be only allowed on market orders.
  • You must have at least one order (leg of hedge) executed to get margin benefit while placing a market hedge order.
Happy Investing,
Team 5paisa