sadayappan subramanian

Asked a question 2 years ago

Have a general question in regards to hedging , Please consider the following situation Monday : Bought Bank nifty Future at 21000 hedge : bought bank nifty 21000 PE at 300 rupees ( ATM PUT) ( weekly expiry ) both trades kindly consider single lot , margin charged by fyers for this trade is around 16000-22000 Kindly consider i have this margin . Tuesday : banknifty gaps down by 2500 points I have always noticed that Deep ITM PUT always trades a few minutes later after the market opens They don’t start trading immediately like the futures The reason being a huge Gap between BID and ASK … After ten or fifteen minutes this settles down and starts trading until then they display only LTP price of previous day my question : will Fyers cut both position since i don’t have enough margin for a gap of 2500 points and since the Put which i had bought has not started trading yet and is still displaying only LTP of yesterday or will fyers algo understand that i am Holding ATM put and continue to hold my position kindly clarify my question thank you in advance @fyers team