I was doing a bear call spread today with 4 lots at regular interval, selling 18000CE and buying 18300CE, after 8 lots i got the issue of Oi restriction saying i cannot buy 18300CE and try to buy using MIS, i then changed the hedge by buying 18200 CE, after adding totally 12 lots or 600 shares( 18000CE 600 and 18200Ce and 18300CE combined 600) i was further not able to add getting the same issue to buy using MIS, so i tried hedge using MIS option and I got negative balance and was asked to close the position immediately. could you please explain what should I do in this case . while sensibull showed I can do a bear call spread with max of 24 lots.
please respond as this is urgent
Hey @Yogarajan_V, could you please DM me your Client ID? Will have this checked.
Hi
You have below position at 12.05
NRML | MIS | ||
---|---|---|---|
NIFTY2291518000CE | -750 | ||
NIFTY2291518200CE | 300 | 600 | |
NIFTY2291518300CE | 450 |
You placed a sell order for 18300CE (450 qty) at 12.05. Your hedge position was broken at this point. so only the margin was increased and message was triggered. Hedge benefits won’t be given if the position is in different product types.
Kindly do all trades in MIS you won’t get any restrictions for OI.
Hi Ragavendran yeah I understood, but before that I had 550 shares in 18000CE and 450 shares in 18300Ce, when further tried to add 18300Ce i got msg oi restrictions and pls use MIS. because of this I had to go for MIS. so Why I was not able to add more hedge in the 1st place. pls explain
will I get the same margin benefits if both short position as well as hedge was also done in MIS?
You had 18200 CE also 300 qty. So overall qty in the long side is 750 and overall qty in the short side is 750 qty. So only it didn’t allow you to take more position on the long side outside the allowed range.
If you can take all positions in MIS, you will get hedge benefits and also there won’t be any OI restrictions. Remember you cannot convert your MIS position to NRML for Index long options.
ok so to avail margin facility I had to go for long 1st and then add short position right, Had I add short position 1st I will not have margin, so hence i tried to add long 1st. I have my own Stoploss for my strategy, I use hedge only to avail margin facility. so please tell me which should I do 1st to avail margin facility. short or long?
see this what how i trade, I 1st enter with 2 to 4 lots on short side then I add hedge( since i cannot add otm 1st).
from then onwards i add long 1st and then short in order to avail margin. This is what I do in general but issue happened only today and in the middle after trying to add more qty.
You can take a position in MIS (Long first and then short). You will not face any issues.
can you tell the same in NRMl, like every other option seller i’d like to take it to expiry, only when I find my trade is going wrong I will close the position.
If I am to take a trade in MIS, I need not go for OTM i’ll do the same in ATM to get max profit intraday.
please leave about intraday and tell me about NRML. sorry If am asking too many questions
one last question. pls don’t hesitate to answer this, though I have read about orbis I have one doubt which none cleared in that forum.
I know, to signup orbis we have to sign stating that we have a capital of min 1 crore, no retail has 1 crore in hand. so how to go about this, If we sign up do we have any prob in future especially from income tax dep?
In NRML you can go long first only in the allowed range. If you want to trade outside the allowed range you should have a short position.
If you have one lot short irrespective of CE or PE, you can do one lot long outside the range either in CE or PE (Note if you already have one long position it won’t allow one more lot)
A custodian like Orbis services HNIs with a net worth of at least one crore. The declaration is required by Orbis to onboard you as a customer. However, Orbis does not make it compulsory to maintain any minimum balance for trading.
ok thanks for the information
Hi Ragavendran, I have a query regarding the range. from the close price of nifty i see the range specified is 250 on either side.
The range which is fixed before the day begin applies for whole day or the range dynamically change as spot changes +/- 250 either side.
If the range is dynamic and let say Spot is 17800 and has moved to 17700(by this time I have done a bear call spread of 10 lots and I can add 10 more lots) and I expect another 100 points down move,
in the above scenario should I also move 1 strike below or will I be able to continue with same strikes.
strikes say 17800CE and hedge 18000CE from beginning.