Thanks a lot Bandlab2 for bringing in this perspective of Margin to the discussion.
At the moment, yes may be a limitation. In all other advance market, exchanges charge margin based on net risk (which is the difference of two strikes) but I think that is not the case in our market. Hope our brokerage house also implement risk based on margin strategy.
Regarding, huge margin requirement when mkt falls to 3600 - if that happens, then the spread will already be deep in the money and will be worth almost 95 or so. In such case, the question is shall we wait till expiry and put huge margin to squeez last 5 rs from the spread or .. close the position and move on to next opportunity. I will certainly go for closing the position and releasing the margin.
Happy Trading.
At the moment, yes may be a limitation. In all other advance market, exchanges charge margin based on net risk (which is the difference of two strikes) but I think that is not the case in our market. Hope our brokerage house also implement risk based on margin strategy.
Regarding, huge margin requirement when mkt falls to 3600 - if that happens, then the spread will already be deep in the money and will be worth almost 95 or so. In such case, the question is shall we wait till expiry and put huge margin to squeez last 5 rs from the spread or .. close the position and move on to next opportunity. I will certainly go for closing the position and releasing the margin.
Happy Trading.