Zerodha Part 2

[msa5678]

Dear Zerodha,

I want to place a spread order entry something like this:
a)Long LT-JAN-1600-CE 1 Lot Around 68
b)Short LT-JAN-1650-CE 1 Lot Around 40

My Query is, whether I will be getting any margin benefits because of the spread OR Do I have to pay the normal margin around 50K ?

Regards

 

[Zerodha]

Dear Zerodha,

I want to place a spread order entry something like this:
a)Long LT-JAN-1600-CE 1 Lot Around 68
b)Short LT-JAN-1650-CE 1 Lot Around 40

My Query is, whether I will be getting any margin benefits because of the spread OR Do I have to pay the normal margin around 50K ?

Regards

Yes you will get, check the span calculator to know the benefits : http://www.zerodha.com/z-connect/blog/view/span-calculator

 

[Raju]

TP

use ZT befikar,bindaas - its more advanced , more stable than NOW. even some irritating issue of choosing the ISP or early terminal locking is not present in ZT.

so without any issue u can use ZT ( its my personal opinion and i stand by that - ZT is more user friendly and advanced than NOW and my opinion is based on actully using the ZT terminal.)

also never ever try to use the NEST Plus stuff while u r running ZT/NOW - it slows down the system and ZT/NOW also

rgds
subroto

NSE NOW is great ...Sharekhan TT is resource hungry . Nest Plus when used with two charts opened simultaneously slows down.NOW is stable .

Regards,
Raju

 

[msa5678]

Yes you will get, check the span calculator to know the benefits : http://www.zerodha.com/z-connect/blog/view/span-calculator

Dear Zerodha,

Calculation of Margin through the Calculator is ok. But to avail this benefit of Margin for hedged positions, Is there any different way of order placement or do we place the order in the regular way ?

Regards,
MSA

 

[timepass]

Dear Zerodha,

Calculation of Margin through the Calculator is ok. But to avail this benefit of Margin for hedged positions, Is there any different way of order placement or do we place the order in the regular way ?

Regards,
MSA

Don't know about ztrader, but in NOW it is available. So there should be something in Ztrader too.

Then in the order entry you have to define whether it is 2-legged spread or 3 legged.

 

[Zerodha]

Dear Zerodha,

Calculation of Margin through the Calculator is ok. But to avail this benefit of Margin for hedged positions, Is there any different way of order placement or do we place the order in the regular way ?

Regards,
MSA

No special way, just place it normally and you will get the margin benefits as soon as the 2nd position is executed..

 

[Zerodha]

Don't know about ztrader, but in NOW it is available. So there should be something in Ztrader too.

Then in the order entry you have to define whether it is 2-legged spread or 3 legged.

TP,

This is for placing calendar spreads only , where you buy one month and sell next month or vice versa.

The kinds msa mentioned is not a calendar spread, just a hedged position and this can be taken normally to get margin benefits..

 

[timepass]

Zerodha has declared me as International son-in law...so no brokerage ..everything free..only thing now left is they should give me some money also so that I can trade and loose their money....till now I have been loosing my own money..Hope Zerodha does this grand favours

Happy Trading:thumb:

You will get money after the first child, so work harder :rofl: :rofl:

 

[msa5678]

No special way, just place it normally and you will get the margin benefits as soon as the 2nd position is executed..

Dear Zerodha,

I had bought LT-JAN-1600-CE on 26-12-2012 at the same time I had sold LT-JAN-1650-CE . I am still holding both the positions since then. As of today the margin being deducted from my account is 43634.63 . I am holding no other positions other than the 1600 and 1650 CE's. If I am getting margin benefits, How come the margin is so much.

With the frequent ups and downs , I find the trading of options in the above fashion more profitable. But keeping so much amount tied up is creating problems.

Regards,

MSA

 

[Zerodha]

Dear Zerodha,

I had bought LT-JAN-1600-CE on 26-12-2012 at the same time I had sold LT-JAN-1650-CE . I am still holding both the positions since then. As of today the margin being deducted from my account is 43634.63 . I am holding no other positions other than the 1600 and 1650 CE's. If I am getting margin benefits, How come the margin is so much.

With the frequent ups and downs , I find the trading of options in the above fashion more profitable. But keeping so much amount tied up is creating problems.

Regards,

MSA

MSA,

If you had shorted the 1650 calls naked, margin required would be around 64000, whereas for a position that you have taken you are getting a margin benefit of 20,000 only on shorting and another 15000 in terms of option premium, total benefit of almost Rs 35000, if not for this you would have required almost 80000 for the same position..