You mean 1120 CE right !!
After facing margin issue myself and not getting any response from Finvasia , I gathered bit of info on this and based on my understanding :
1) Full margin is required while placing the order. You get the margin benefit only after the order is executed. Say for eg if margin req for a hedged position is 20000 but individual position requires 100000 as margin then 100000 will be required while placing order but once the order is executed and position is hedged only 20000 will remain blocked rest amount will be available to take other positions.
2) You will get the margin benefit if you hedge your position later in the day.
3) Full margin will be required If squaring off results in un-hedging of the positions you took .
4) No margin required for buying Options. You have to full premium for buying premium.
After facing margin issue myself and not getting any response from Finvasia , I gathered bit of info on this and based on my understanding :
1) Full margin is required while placing the order. You get the margin benefit only after the order is executed. Say for eg if margin req for a hedged position is 20000 but individual position requires 100000 as margin then 100000 will be required while placing order but once the order is executed and position is hedged only 20000 will remain blocked rest amount will be available to take other positions.
2) You will get the margin benefit if you hedge your position later in the day.
3) Full margin will be required If squaring off results in un-hedging of the positions you took .
4) No margin required for buying Options. You have to full premium for buying premium.
Ok so continuing from point 4 above,
Say I buy an ITM put option for 30000 and the total capital I had at the time was just 50000.
now somewhere during the day I decide to write a put option of different strike just in case something goes wrong. So now what's the margin requirement?