If I have taken a LONG future position in NIFTY for 1 Lot say : 1 LOT NIFTY JUL FUT. Now if I want to reverse the position to SHORT 1 LOT NIFTY JULY FUT then 1. I need to fire Two orders. First order SHORT 1 LOT NIFTY JULY FUT and then again SHORT 1 LOT NIFTY JULY FUT to create short position? 2. or I can fire One order for SHORT 2 LOT NIFTY JUL FUT. First Lot will be closing the existing LONG position and Second lot will create a short position? 3. If point 2 is valid then ,will there be margin requirement for 2 Lots while firing the order or there is no extra margin required(with some account balance in cash) as the margin was already provided while opening the long position?
@Akintos, Point 2 works but you will be required to bring in margin for the fresh short(2nd lot of Nifty) you are creating. Once the order is executed, the margin blocked for the long position will be released. If you don't have additional margin in your account, you will have to follow Point 1.
If point 2 works, then what will be the order response pattern? If the open position closes but new one is not created then what will be order response? It will be very difficult to do handle programatically
The whole order will reject if the margin is not available for the 2nd lot you are shorting. It is best you exit the open position in one order(no margin check) and the margin will be released and place the order for the short position. This way you don't have to maintain additional margins. Would be simple to program it too.
If you don't have additional margin in your account, you will have to follow Point 1.
Would be simple to program it too.