I was trying to implement a basket order which gives significant margin benefit if the trades in the basket are executed together. For e.g. bull call spread which require much less margin than the individual trades. However, I understand that basket order is not yet supported for API clients and we still have to place orders individually for each trade. Does it mean that to get the orders executed we should have higher margin available in our account to facilitate individual trades(and not the basket order margin)? I.e.- let's say the basket margin requirement is Rs 10 and the individual trade in the basket require margins of Rs 50 and Rs 20. Do we need to keep Rs 50 to get the basket order executed through API?
If no, please can someone help on how to implement such basket orders so that they don't require high margins equivalent to individual trades.
Hi @mayankk, Even with normal order placement for limited loss option strategies like the one you mentioned, the margin benefit is passed on as long as the buy leg of the order is placed first. Once the buy leg of the strategy is executed, the margin required for the short leg will be lower(same as what you'd require while placing the orders in a basket).
Even with normal order placement for limited loss option strategies like the one you mentioned, the margin benefit is passed on as long as the buy leg of the order is placed first. Once the buy leg of the strategy is executed, the margin required for the short leg will be lower(same as what you'd require while placing the orders in a basket).