You cannot place a spread order between spot and futures. In a position like this there is hardly any market risk and because of this the margin requirement to setup a calendar spread like this as per exchange norms will be very less. It will be calculated separately or max. Yes you can take it as MIS, and convert to NRML and carryforward. hiii nitin sir i have a query about calendar spread order in commodities ie buy zinc 1 lot of current expiry and sell one one lot zinc of next expiry how should i place an order. “The issue with entering a calendar spread in 2 different orders like above is that (a) There is a risk that the price moves between placing both the orders (b) you would have to pay brokerage for 2 orders to enter and 2 to exit (not that we would mind). Thanks for your reply. Thanks Nitin, its a great help. Also I see that it DOES NOT allow to feed in the second order. Futures to Futures? Long 10 lot, 8000 PE Nifty 16 July, current price 3.00. but the order gets failed with the message, Margin required 385794, these are similar to what if I have shorted naked 8100 PE. NRI’s will have to first open what is called a custodian account, and then trade using that. 1. Hussain when u r placing spread orders, you basically have to place the difference between the two future contracts that you want the trade to be executed. Thanks. Tndr0592 3. 2. Is that a exchange product and liquidity available ? Is there an option now to place spread order in zerodha? In both the above case margin required under Span & Expo would be the same. I am not able to find any option for placing spread orders on kite platform. : INZ000010231 | SEBI RA Regn. Hopefully, by the end of this comparison, you should know which strategy works the best for you. https://zerodha.com/margin-calculator/SPAN/ or is it flexible to close each one separate?. As per the above documentation, if Spread order is traded (offered by NSE) then only 6k marging is required. thanks. You make 2 at-the-money trades, 1 in-the-money trade, and 1 out-of-the Automated system is tough, but have you checked Kite API’s https://kite.trade/docs/connect/v1/. or PI? Not right now, on our list of things to do though. When in India direct Spread option trade will be allowed? Why people use the word Arbitrage so easily in India for basic spread trading ( intra or inter market) hi nitin sir 1. Downside risk is limited to net debit paid, and upside reward is also limited but higher than the risk involved. This strategy consists of two long calls at a middle strike (or So basically the costs are Brokerage, Exchange and govt charges. Use the drop down on the top where you choose to add security to the marketwatch, choose spread instead of Normal, you will get an option to trade this spread directly. Why not just call it 1 contract = Contract value x Rs xxx per tick simple ii) When two order are placed separately Short with margin about 64000 and buy with 35000 ( sell premium + additional 8000)approx total margin required approx 72000. suppose i trade the below spread order: Dear sir, 7. Ankit, you can currently trade on calendar spreads on futures this way. 2. Even though you send multiple orders using Spread order, it will still be separate orders sent to the exchange, and hence there would not really be any brokerage benefit. My question is in Qty column should I put 1? By using the SP order type in the spread order window, all the above 2 issues get fixed.”, I have used 2L/3L orders for option trading. now i want it to convert into CNC and continue. : ARN-104096, Enter a password at least 8 characters long, NSE Member id: 14300 | BSE Member id: 6363 | MCX Member ID: 55945 | Investment Adviser Regn No: INA000014252. Devendran, algo trading is not allowed for retail by the exchanges. Yes 2L futures orders and spread is the same. buy 1 lot jan nifty @10690 At this time, Oct Call 8000 is trading at Rs.79.90 with Vol 74921. Presenting Option Analyzer app for smart option traders.Call option & Put option analysis can be done now with few clicks. I called Zerodha and the executive asked me to place two different orders for buy and sell which contradicts this post. If the strategy is not used, the trader will not be making any profit or loss as the prices will not change, however, with the implementation of this strategy, the trader can create a potential for limited profit, with exposure to 窶ｦ Use the SPAN calculator to see the margin. I have a few questions Can we play a butterly spread order in NSE NOW ? I still need some clarification. the later is better as some arbitrage strategies can be placed with ease and good executing accuracy. 2) i then tried 2L contract and it is also cancelled immediately (may be because nifty moves so fast that amount i entered does not take place immediately). can i spread different bank future stocks (like IOB nd Vijaya bank) in 2leg. In kite how i know the market figure of sensex,nifty. How will the order execute? In that case Atul, you don’t really need a spread order option. My investment will be 76-51= 25 rs is this correct ? currently maximum 3 leg is only available. If I observe the ES s&P 500 ( most popular and liquid index future in the USA) the calender spread hardly moves so there is no point in trading Hi Sir, If both orders get executed at same time (in 2L ) , all I need to maintain the margin calculated in span calc,is this correct? Cost remains the same, if you execute through the spread order window, or individually. I can clearly see that in NSE the spread order gets executed only if there is a corresponding ad buyer’/seller. 2. The submission of order was not successful because I was getting the message to select contracts with different expiry date. 2. All your funds has to sit with what is called a custodian. Another sort of related question: I am facing a practical problem that I am looking froward to your guidance on solving it. In other exchanges, you have to fire two orders separately. If yes, how? Brokerage Calculation Oh, yes, most definitely! Sudheer, no timelines as such, we’ll keep you posted. Also, when the implied volatility of the underlying assets increases unexpectedly and you expect volatility to come down, then you can apply Long Call Butterfly strategy. Does that mean we at zerodha cannot place a spread order!!? Yes Mr Gandhi, we are working to fix the RMS rule for 2L orders where you are trying to rollover the position. minus and divide will do it for me.. please try to add that in next update.. also kindly add some default scanners for candle formation and expert advisors. No worries for refund as the money remains in investor's account”, "Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. of times based on near month last trade price. To square off a position no margin is required. By using the SP order type in the spread order window, all the above 2 issues get fixed. The 2nd row will change based on the contract you select in the first row, you can’t edit it. hi… this been a very interesting concept.. IOC means Immediate or cancel right? When I want to do that, i would like all 4 legs to be executed at once.