Cover Oder Margin for F&O

Is it feasible to determine the margin requirement solely based on the price difference between the limit and stop-loss levels? For instance, if the limit price is set at 10 points for the Nifty 50 index 20,000 strike, and the stop-loss is set at 5 points, resulting in a 5-point differential, the margin needed would be 250 instead of 500. This functionality is presently offered in ICICIDirect’s OptionPlus platform.

We are expecting same in Dhan as it helps to trade more lots with less margin.
@PravinJ @Naman @Hardik

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@PravinJ Can we expect any update?

Hi @Bobbyn4u Margins are defined by exchanges, not sure what you mentioned - how this could be possible. Seems like leverage, which isn’t permitted… unless there is something I didn’t get.

You can cross check option plus in ICICIdirect for better understanding.

We checked what you were mentioning after you shared, it is not permitted by regulations or exchanges. Cannot comment on how some platform does it, in our case we prefer to go by margins defined by the exchanges.