What happens if buy or sell orders are placed when there is some open position already existing in the same underlying?
If you place a Buy/Sell orders in an Underlying, in which you already have an open position, margin will be levied as per the following calculations: . First the Marginable buy/sell order lots will be calculated. Marginable Buy Order lot is arrived at by deducting the open net sell position lot from the buy order lot at underlying-group level. Similarly Marginable Sell Order lot is arrived at by deducting the open net buy position lot from the sell order lot at underlying-group level. . Marginable Buy / Sell Order Value is then arrived at by multiplying the respective buy / sell order weighted average price with marginable buy / sell lots. . For Order Level margin, Marginable buy order value and Marginable sell order value would be compared and margin would be levied on higher of the two. For example, in the above example there is an open sell position of 1 lot of 1000 qty ” FUT-USDINR-27-Aug-2009″. Marginable buy and sell order quantity would be 1 lot of 1000 qty and 3 lots of 3000 qt
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