Net margin is applied to both fully hedged and unhedged positions.
1) Fully Hedged Positions: The margin will be calculated on one side of your orders, whether buy or sell. For instance, if you have 4 open positions on "NVIDIA," each of 10 lots, the current margin calculation results in zero. With the updated version, the margin will be 720.5 (Net Margin 360+360.5).
Stock | Direction | Price | Lot | Margin% | Margin Charged |
NVIDIA | Buy | 720 | 10 | 5% | 360 |
NVIDIA | Sell | 720 | 10 | 5% | -360 |
NVIDIA | Buy | 721 | 10 | 5% | 360.5 |
NVIDIA | Sell | 721 | 10 | 5% | -360.5 |
2) Partially Hedged Positions: The margin will be determined based on the largest leg. For example, if you hold 4 open positions on "NVIDIA," with three positions of 10 lots each and one of 5 lots, the margin will be calculated at 720.5, considering the larger legs of 360.5 and 360.
Stock | Direction | Price | Lot | Margin% | Margin Charged |
NVIDIA | Buy | 720 | 10 | 5% | 360 |
NVIDIA | Sell | 720 | 10 | 5% | -360 |
NVIDIA | Buy | 721 | 10 | 5% | 360.5 |
NVIDIA | Sell | 721 | 5 | 5% | -180.25 |
Please note that this change will exclusively impact stocks, and margin calculations for all other products or currency pairs will remain unchanged.