Do your broker accept lesser margin for Spreads than Naked short.

Does any broker in India accepts lesser margin for option spreads than naked short position.

Example:
case a) Margin for Short 5400 call.
case b) Margin for Short 5400 call With Long 5200 call

What is the margin blocked in both above cases.

(Positions holding period few weeks , nifty below 5200 , all options for same expiry )

All legs are treated separately. In both case a and b, you need to keep margin for the short leg.

Today I received a mail (quoted below) from IciciDirect , communicating that they are introducing Span margin.
Hope other lower commission brokerages follow suit, soon.


In line with our constant endeavor to enhance the customer experience and offer integrated services with new products and improved processes we are pleased to Launch "SPAN based margining for Futures and Options" on the online trading platform for Derivative customers.
SPAN (Standardized portfolio analysis of risk) is a leading margin system, adopted by most Exchanges around the world. SPAN based on some predetermined parameters calculate margin assessing the one-day risk for a trader's account.
SPAN based margining will bring enhanced efficiency in the Derivatives margining system and provide you with the benefit of reduced margins on hedged positions taken in futures and options in the same underlying. Hedged Positions in Derivatives market also restrict losses. Moreover, you can use multiple derivatives strategies and benefit from SPAN based margining.

Benefit in the form of reduced margins while trading in derivatives for taking a hedged futures and options position.
Utilise the saved margins to trade in either F&O or equity
New Margin calculator with Margin requirements for both Futures and Options displayed on the same page

Hedging their positions in derivatives by taking counter position in same underlying
Dealing in derivatives strategies

Still Rs100 per side is at a higher side compared to zerodha who charge Rs20 per transaction irrespective of no. of lots.. For example, if you want to buy 20 lots of Rs 10 Nifty option, you need to pay 2000 as brokerage whereas in zerodha u pay Rs20...

Hai,
If the position below,

5200 -Aug-Call - Rs: 65/- BUY
5100 -Aug-Call - Rs: 115/- SELL


What is the span margin? 115 - 65 = 50 * 50 =Rs: 2500/ - only ?
or More than that?

Pl.explain with brokers name

check with ICICI.

they provide spread margian I guess.