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No. Margin is blocked only on orders, which result in an Increased Risk exposure. Margin is not recovered from an order, which is cover in nature. However in case of buy cover order where the premium exceeds the margin blocked, extra margin is required for placing the order. If a Position of opposite nature is present then the Order is reduced by the opposite position, if the opposite position is greater than the order, then the order is not margined at all. For e.g. a) if you have a Buy position of 4500 in OPT-STABAN-25-Jul-2002-210-CE, and you place a sell order of 3000 then the sell order becomes non-marginable. b) If you have a sell position in OPT-NIFTY-27-May-2004-1700-CE, and the margin blocked is Rs.45,500.00 and a cover buy order is placed which requires total premium of Rs.65000.00, then extra margin to the extent of Rs. 14500.00 (65000-45500) is required. Please note - Exchange has identified option contracts in either Deep Out of The Money (OTM) or Non Deep OTM for which Exchange has stipulated separate Exposure percentage (also known as Extreme loss margin percentage). Hence accordingly for Deep OTM or Non Deep OTM option contracts Initial Margin percentage and Minimum Margin percentage would be revised accordingly.