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    Does margin benefit apply to both Buy-first and Sell-first hedge structures?

    Yes. Whether you start with a Buy or a Sell, margin benefit is given as below:

    • If you hold a single, unhedged position, full margin is charged as per SPAN system.
    • Once you add an offsetting position (a hedge), your overall risk reduces. SPAN system recalculates and blocks only the  final reduced margin required.
    • The difference between the full margin before hedge position creation and the final reduced margin post hedge position creation is released back to your account instantly.
    If I already hold a Put Long Options position and place a Futures Long position later, will I get hedge margin benefit immediately or will I be required to provide full margin for the Futures Position ? Why does the system block full margin if I execute only one leg on Basket order? What happens if I square off one leg and hedge is broken? Does margin benefit apply across different scrips? Can I hedge using weekly options? What happens to margin benefit near expiry?