Understand Net Margin Used (Initial vs Final)

contactruchir

Currently I have variety of options positions (few are covered, hedged, open etc)
Now I am trying to add couple more options. While fetching margin, I'm unable to understand what will be my nett required margin if I execute that order.

Below are 2 margin snippets:
order 1: {'initial': {'type': '', 'tradingsymbol': '', 'exchange': '', 'span': 516815.25, 'exposure': 48271.35, 'option_premium': 0, 'additional': 0, 'bo': 0, 'cash': 0, 'var': 0, 'pnl': {'realised': 0, 'unrealised': 0}, 'leverage': 0, 'charges': {'transaction_tax': 0, 'transaction_tax_type': '', 'exchange_turnover_charge': 0, 'sebi_turnover_charge': 0, 'brokerage': 0, 'stamp_duty': 0, 'gst': {'igst': 0, 'cgst': 0, 'sgst': 0, 'total': 0}, 'total': 0}, 'total': 565086.6}, 'final': {'type': '', 'tradingsymbol': '', 'exchange': '', 'span': 516815.25, 'exposure': 48271.35, 'option_premium': -921071.25, 'additional': 0, 'bo': 0, 'cash': 0, 'var': 0, 'pnl': {'realised': 0, 'unrealised': 0}, 'leverage': 0, 'charges': {'transaction_tax': 0, 'transaction_tax_type': '', 'exchange_turnover_charge': 0, 'sebi_turnover_charge': 0, 'brokerage': 0, 'stamp_duty': 0, 'gst': {'igst': 0, 'cgst': 0, 'sgst': 0, 'total': 0}, 'total': 0}, 'total': -355984.65}}

order 2: {'initial': {'type': '', 'tradingsymbol': '', 'exchange': '', 'span': 0, 'exposure': 37660.049999999996, 'option_premium': 0, 'additional': 0, 'bo': 0, 'cash': 0, 'var': 0, 'pnl': {'realised': 0, 'unrealised': 0}, 'leverage': 0, 'charges': {'transaction_tax': 0, 'transaction_tax_type': '', 'exchange_turnover_charge': 0, 'sebi_turnover_charge': 0, 'brokerage': 0, 'stamp_duty': 0, 'gst': {'igst': 0, 'cgst': 0, 'sgst': 0, 'total': 0}, 'total': 0}, 'total': 37660.049999999996}, 'final': {'type': '', 'tradingsymbol': '', 'exchange': '', 'span': 0, 'exposure': 37660.049999999996, 'option_premium': -390506.25, 'additional': 0, 'bo': 0, 'cash': 0, 'var': 0, 'pnl': {'realised': 0, 'unrealised': 0}, 'leverage': 0, 'charges': {'transaction_tax': 0, 'transaction_tax_type': '', 'exchange_turnover_charge': 0, 'sebi_turnover_charge': 0, 'brokerage': 0, 'stamp_duty': 0, 'gst': {'igst': 0, 'cgst': 0, 'sgst': 0, 'total': 0}, 'total': 0}, 'total': -352846.2}}

I understand that negative margin means margin will be released if that order is executed.
So what will be my net margin for Order 1 & Order 2 ????

Order 1:
Initial Margin: 5,65,086.60/-
Final Margin: -3,55,984.65/-

Order 2:
Initial Margin: 37,660.05/-
Final Margin: -3,52,846.2/-

Nivas

Rather than checking the margin for each order separately, you can easily check the combined margins by including both orders in the basket order API as a single request. This approach will provide you with the net margin requirement details. Additionally, you might find it useful to read this article for more information on initial and final margins.