Margin for strategy based trading

R

rishi85

New Member
#1
#1
Hi,

I want to run few option based arbitrage/Vol strategies in Indian markets but the problem is huge margin requirements.
Lets say I want to buy a call, sell a put of same strike and short a future to cover this. But I would need to keep a margin for put & future and pay a premium for call which would lock up a lot of capital.

Is there a way to avoid this? Are there brokerage firms which would allow me to keep a margin for whole strategy rather than individual legs.

Any help is much appreciated.

thanks
Rishi
 
munde_77

munde_77

Banned
#2
#2
rishi85 said:
Hi,

I want to run few option based arbitrage/Vol strategies in Indian markets but the problem is huge margin requirements.
Lets say I want to buy a call, sell a put of same strike and short a future to cover this. But I would need to keep a margin for put & future and pay a premium for call which would lock up a lot of capital.

Is there a way to avoid this? Are there brokerage firms which would allow me to keep a margin for whole strategy rather than individual legs.

Any help is much appreciated.

thanks
Rishi
Click to expand...
I am also looking for the same::)
 
Last edited:
P

prasham

Active Member
#3
#3
Yes the easy way out is pledge bluechip stocks of your portfolio so that you don't have to keep much cash with your broker.
 
R

rishi85

New Member
#4
#4
yeah. that's one thing I'm doing currently. But I don't have a very big inventory of stocks and when you want to arb, you would need to take big positions to make substancial pnl.

anyways thanks for help.
Rishi
 
columbus

columbus

Well-Known Member
#5
#5
rishi85 said:
yeah. that's one thing I'm doing currently. But I don't have a very big inventory of stocks and when you want to arb, you would need to take big positions to make substancial pnl.

anyways thanks for help.
Rishi
Click to expand...
Stocks ...... upto 5 times for 1or 2 days
Derivatives..... Upto 10 times for a month.
Commodities.....upto 25 times
Currency..........upto 35 times
Forex...............upto 500 times.

More margin means more trouble you are inviting.

(Data may be corrected by users.)
 
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