Margin Query

[tradedatrend]

"I bought 1 lot of NIFTY @ 7400"

I am not sure, if he has bought call, put or future, as he didn't mention it neither he wrote its premium if it is CE of 7400

My observation is based on assumint it a NF @ 7400, and my all calculation are based on the same if you see.

Beside it, I myself wrote in my first post itself " (hope i have read your post rightly without missing anything)"

If 7400 is CE, then its is hedge, if its Nfity future, then certainly its not hedge.

Please also note the observation of 'manishchn' "He is buying nifty futures"

@ tradedatrend brother you are totally wrong...how it is possible that he will loose unlimited money if market fallen below 7377???....its baseless statement.
see the positiom...
bought 7400 CE ...price not mentioned but lets say its 100 sold 7600 call @ 23

now whereever market go .7000 6800 6500 he will loose only 100 points paid for 7400 call and he will earn all 23 points in 7600 call so limited risk of 77 points


now if market goes up then he will make loss in 7600 call as its shorted...but on other side he will make good profit in 7400 calll so no loss....

its a pure hedged position and will require a marhin of 8000-10000. ...as there is no risk of upside.

(if 7600 call is shorted naked then margin of 30000 or full nifty will be blocked.)

 

[tradedatrend]

7400 is Nifty future or CE

If CE 7400, then at what premium?

How a margin is calculated in the following scenario-

I bought 1 lot of NIFTY @ 7400 and sold a Call option of Strike Price 7600 at a premium of Rs. 23.

I would be grateful for an answer to this.

 

[Somatung]

How a margin is calculated in the following scenario-

I bought 1 lot of NIFTY @ 7400 and sold a Call option of Strike Price 7600 at a premium of Rs. 23.

I would be grateful for an answer to this.

As you do explicit not mention any word about any bought call at 7400 level but only about: Bought 1 lot of Nifty @ 7400, you went long Nifty future at 7400 = You have to bring the margin for this leg = around 30'000 Rs or a bit less.

You sold the July 7600 call with a value of 23 Rs = You also have to bring the margin for this leg which is around plus minus 25'000 Rs

So we talk here about 55'000 Rs plus or minus. This is just a rough calculation as it can vary from broker to broker in your place. I would suggest you talk to your India broker at the moment you have one, and clear that with him.

Now a topic you did not ask for, but was discussed in the thread:

Is this a clever strategy? Hmm, read what Tradedatrend has posted and you will know it. And be assured he did not post wrong.

Take care and you may think twice to trade this what you posted in case you have no deeper experience in and about trading. Your loss potential on the down side with this strategy is huge if you would not know how to handle it. Your money and your choice.

@Manishchan

Kindly read this and then you know how the strategy is called: http://www.theoptionsguide.com/synthetic-short-put.aspx

 

[tradedatrend]

Sir, deleting your own post when proved wrong is not a good thing

@ tradedatrend brother you are totally wrong...how it is possible that he will loose unlimited money if market fallen below 7377???....its baseless statement.
see the positiom...
bought 7400 CE ...price not mentioned but lets say its 100 sold 7600 call @ 23

now whereever market go .7000 6800 6500 he will loose only 100 points paid for 7400 call and he will earn all 23 points in 7600 call so limited risk of 77 points


now if market goes up then he will make loss in 7600 call as its shorted...but on other side he will make good profit in 7400 calll so no loss....

its a pure hedged position and will require a marhin of 8000-10000. ...as there is no risk of upside.

(if 7600 call is shorted naked then margin of 30000 or full nifty will be blocked.)

 

[Somatung]

Sir, deleting your own post when proved wrong is not a good thing

Members can not delete in this way any post, so the admin or mod did delete his post. Take care

 

[tradedatrend]

Seems like he changed the text of his post completely, as link of 'view post' redirect to his other post.

And unlike FB etc, here is no option of seeing edited versions.

And btw do you have any clue about my given below post?

http://www.traderji.com/derivatives...-trigger-based-trading-automated-trading.html

Members can not delete in this way any post, so the admin or mod did delete his post. Take care

 

[Vineet19]

I was out of the town for some business.

Thanks all for this:thumb:.

 

[Vineet19]

I am unable to extract any satisfactory solution from all the replies.

Can anyone please be more specific? :annoyed:

 

[tradedatrend]

Please be MORE SPECIFIC too, what do you want to know?

You want to know used margin of your trade?

OR

You want to know whether its hedging or not?

I am unable to extract any satisfactory solution from all the replies.

Can anyone please be more specific? :annoyed:

 

[Vineet19]

Please be MORE SPECIFIC too, what do you want to know?

You want to know used margin of your trade?

OR

You want to know whether its hedging or not?

Sir I just want to know the how is the margin calculated in this? Are all the brokers have same margin policy? What are the consequences of this trade.?