Hello
We have checked position as per given sequence.
1. Long 1 ATM Call: Charged Full Premium
2. Short 1 Future: Requires SPAN Margin + EXPOSURE Margin at the time of order placement. Hedging benefit in SPAN Margin will get released once the position is created
3. Short 1 ATM Put: Requires SPAN Margin + EXPOSURE Margin + Premium at the time of order placement. Hedging benefit i.e. SPAN Margin + Net Premium benefit will get released once the position is created
So the basically Full Margin + Premium required for each individual position at the time of order placement and hedging benefit will get released after the position is created. So please plan accordingly.
We have checked position as per given sequence.
1. Long 1 ATM Call: Charged Full Premium
2. Short 1 Future: Requires SPAN Margin + EXPOSURE Margin at the time of order placement. Hedging benefit in SPAN Margin will get released once the position is created
3. Short 1 ATM Put: Requires SPAN Margin + EXPOSURE Margin + Premium at the time of order placement. Hedging benefit i.e. SPAN Margin + Net Premium benefit will get released once the position is created
So the basically Full Margin + Premium required for each individual position at the time of order placement and hedging benefit will get released after the position is created. So please plan accordingly.
I think that Indian Broking industry is still to catch up with the mathematics of hedging after this SEBI peak margin reporting exercise !!