I already have an existing bull put spread from last Friday, for next expiry, that is 21st April. Today I bought one put for today’s expiry and when I tried to exit it, it didn’t happen. The error was, “This leg is part of a hedge…”. This is factually wrong. I wasn’t even short of margin because put buy order wouldn’t have executed. I was just trying to exit the long position 24050 put for today’s expiry. The position exited eventually but gave me anxiety. Can you please check and advise?
When you add a long put position, even from a different expiry, the RMS consider it as part of an overall hedged structure along with your existing bull put spread, and margin benefits may get adjusted accordingly.
In such scenarios, the system may restrict direct exit of buy legs, as removing them can increase margin requirements. To proceed smoothly, it is generally required to close the sell leg first, since it carries higher margin impact. Hope this clarifies.
Never had such problem with other brokers. Besides, the calendar spread benefit has already been revoked by SEBI long ago. So, ultimately this is the problem with your platform. Please take this as feedback and improve such scenario.
Did you read the question? If there is margin issue, I wont be able to take a fresh long position. And if fresh position, that too in different expiry, was allowed, then there should not be problem in exiting that long position.
@nkspro I think you misunderstood my sentence. I mentioned about “margin required“ value when you took the position. If Dhan’s RMS takes the new positions in with an existing strategy, it would adjust the margin required in the new position.
