Are hedge benefits considered for margin calculation in basket mode on FYERS?

Are hedge benefits considered for margin calculation in basket mode on FYERS?

Yes. If your basket includes a valid hedge (for example, offsetting option legs on the same index/stock), FYERS reduces the required margin as per the exchange margin framework once the relevant legs execute. The order window shows an estimate of this via Funds req; the final margin depends on which legs fill and the order in which they fill.

How it works

  • Eligibility: Hedge benefits are applied when your legs form an exchange-recognised offset (e.g., certain long–short option combos on the same underlying/segment).
  • During execution: Legs are sent in a margin-optimised sequence to minimise overall margin usage while the position is being built. Offsets start reflecting as soon as the required legs are filled.
  • Estimates vs final: Use the footer in the order window (Funds req / Funds avl / Net premium / Charges) for margin estimates. The Charges sheet shows only fees; final margin can change with price moves, partial fills, or if a hedge leg doesn’t execute.

How to verify hedge margin in basket mode (FYERS App)

  1. From the Options Chain, turn on basket mode and add your legs.
  2. Open the order window and review the footer’s Funds req to see the estimated margin with hedge impact.
  3. (Optional) Tap Charges to view brokerage and statutory fees for the basket.
  4. Place the basket and monitor leg fills and margin in Orders.

Tip: Add the hedging leg(s) in the same basket and compare Funds req before vs after to see the estimated reduction.

Important: Hedge benefits apply only when exchange offset rules are met and the required legs execute; partial/failed legs can remove the benefit.

What If…

ScenarioResolution
Only one side of the hedge fillsNo hedge benefit yet; Funds req reflects the unhedged exposure until the other leg executes.
A hedge leg is rejected or not tradedOffset won’t apply. Modify/replace the leg and place again.
Legs have different expiries/strikesBenefit depends on exchange offset rules; not all combinations qualify.
Preview shows lower margin than post-tradeFinal margin follows executed prices/quantities; use Orders and the Contract Note for the final view.
Carrying the basket overnightEnsure sufficient funds; overnight requirements follow exchange rules.

Last updated: 20 Oct 2025