Hey I'm sorry I'm posting the same post in 2 threads but it's bumming me that z is not answering my query. I really hope someone here can clarify
How does the margin benefit work when I take multiple fno position?
Example:
Leg 1: Nifty future long
Leg 2: Nifty ATM pe short
On what basis is margin benefit calculated?
How does the margin benefit work when I take multiple fno position?
Example:
Leg 1: Nifty future long
Leg 2: Nifty ATM pe short
On what basis is margin benefit calculated?
We will surely try to explain you. Firstly the entire calculation of margin calculation is based on SPAN and there is no exact calculation method for a portfolio benefit since it will change with the change in timelines from Expiry/Strike price/Volatility etc. For a general observation we can say that the benefit is somewhat equal to the net premium to be paid. This is just a an observation and there is no such rule defined.
Also, all the portfolio benefits are applicable on SPAN margins and no benefits are given on Exposure / ELM Margins. You can PM us your contact details, we can have our officer call you and try to explain you more in detail if it helps.