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    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 ?

    With regards to  hedging of positions & the resulting margin benefits, let us first understand the SPAN margin concept. Clearing Corporation uses the SPAN system for the purpose of computation of initial margin, which is a portfolio based system. It analyzes various market scenarios to determine the initial margin requirement  to cover the potential losses. The hedge margin benefit is given on the initial margin component for the mentioned scenario is as below

    • Once you place an order for Futures Long position (a hedge), SPAN system recalculates and will ask for lower margin on order placement considering the hedge position benefit.
    • The system will not ask for the full margins on the order placement of Futures Long position.

    Let us simplify this with an illustration below: 

    You have an open position in Put options as below:

    Contract Buy/Sell Qty CMP (Rs.) Current Premium Value (Rs.)
    OPT-NIFTY-28-Oct-2025-25500-PE Buy 75 19 1,425

    Once you place an order for Futures Long Position as below, the margin benefit on hedge position is given as under:

    Contract Buy/Sell Qty CMP (Rs.) Initial Margin Required (Rs.) Margin required considering Hedge benefit Remarks
    FUT -NIFTY-25 NOV 2025 Buy 75 25850 91271 Hedge formed, margin of Rs.91271 instead to Rs. 225945   System will ask for lower margins at order placement itself.


    Below is the benefit comes under Margin calculator:

    You can always view your hedge margin benefits while taking additional position through “Include open position” tab, under F&O Place order page, Watchlist and Basket Order page, available on the website.

    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 to both Buy-first and Sell-first hedge structures? Does margin benefit apply across different scrips? Can I hedge using weekly options? What happens to margin benefit near expiry?
    What forms of Margin are acceptable for taking futures and options positions? On what positions would the Margin be debited? Will any Margin get debited if I have taken the positions by blocking shares in my Demat Account? When will the Margin be debited from my linked bank account? When does my blocked margin get released? Can I withdraw the margin during the day? How do I withdraw my Margin amount lying with ICICI Securities? Where can I see the Margin amount debited from my savings account?
    Why am I not able to de-allocate from F&O cash allocation and I am getting an error pop up as 'Debit Peak Margin Now'? Why is my Peak Margin amount higher than value of Executed Order(s)/Open Position(s)? Why are there additional entries in my statement/Ledger/Bank Account? Why is my Peak Margin amount showing positive value instead of zero even though there are zero trades placed during the day ? Will I be able to place orders in any Options contract for stocks underlyings on expiry day? Will I be able to square off my existing position in (ITM, OTM & ATM) contracts if the stock underlyings Option contracts are disabled on expiry day? What will happen to the existing position which is open on the adhoc expiry day? Will I be able to take positions in stocks Options contract on its adhoc expiry day? Will there be any changes in Options EOS process for square-off? Will there be any changes in Options EOS process for cancellation? How frequently will Long & Short EOS process be run? Can I claim from I-Sec if I have incurred a huge loss in the restricted stock underlying and I am not able to average out my losses by taking fresh positions in the same on normal expiry or adhoc expiry day? What will happen if the positions does not get square-off in the EOS Process and remains open after expiry?
    What is the maximum exchange specified Clientwise limit allowed in F&O segment?
    Will I be able to use the value in the 'Withheld Profits' column for taking positions on next trade date? What is 'Withheld Profit' amount and when will this amount be released in my limits for further use? What is the significance of this 'Withheld Profit' amount in trading? Where can I see this 'Withheld Profit' amount? When will the withheld profit amount be settled/released/added in my limits? What all amounts would be used to calculate cumulative net profits or losses? Whether profit/ loss of all Future and Options products will be impacted? How will the withheld amount be calculated during the day and end of the day? What if I have profit in the first trade and I want to place another order, can I use that profit to palace another order during the day? Can I use withheld or unsettled profits to add the margin requirement for my positions during the day? Can I use the premium receivable from the Option trades which are unsettled and withheld to place another order under F&O? Will there be any amount withheld if there is a cumulative net loss? When will the 'Withheld Profits' get released in limits? What happens if the cumulative net amount at any point is Negative or Zero?
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