How will you get a hedge margin benefit?

With effect from 1st June 2020, NSE’s new Margin Policy Framework has structurally changed how margins are calculated. The reduction in margin requirement for several hedged options strategies with the least risk potential has been reduced to almost 70% of what was required earlier(depending on the position). Example: If you sell nifty futures and buy a call option to hedge. Sell Nifty Future at 14500 Buy NIFTY CE of strike price 14500. Span Margin: 0.00 Exposure Margin : 21784.88 Total Amount Required : 21784.88 Margin Benefit: 141645.0

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