How can I benefit from new margin framework?
The margin requirement framework has been modified by NSE w.e.f June 1st, 2020. The margins for hedged positions have now dropped by almost 70% as compared to earlier which you can check on our updated margin calculator.
For instance, if you sell bank nifty futures and buy a call option to hedge, you will be able to check the margin benefit in green as shown below:
You can also check the margin requirement on the Kite order window:
The margin required for selling options or trading futures will change after you purchase options to hedge your trade. Learn more about the margin benefit for hedged positions in this tradingQ&A post.