For example, in a Bull Call Spread, the Buy Call leg helps hedge the risk of the Sell Call leg. When both legs are added to a basket, FYERS can show the estimated funds required after considering the hedge impact.
To utilise the order-level hedge benefit, ensure that the Buy leg is added before the Sell leg in the basket.
Basket execution follows a fixed sequence where Buy orders are placed first, followed by Sell orders. This helps ensure that the protective Buy leg is considered before the Sell leg, allowing the margin calculation to reflect the hedge benefit wherever applicable.
For example, if you create a Bull Call Spread with the following legs:
In this strategy, the Buy Call acts as the hedge for the Sell Call. When the Buy leg is placed first and the Sell leg is placed next, the margin calculation can consider the hedge benefit.
The hedge benefit applies only when the required legs form a valid hedge and execute successfully. If a leg is rejected, pending, partially filled, or does not qualify under exchange margin rules, the hedge benefit may not apply as expected.
| Scenario | Solution |
|---|---|
| The Sell leg is added before the Buy leg | The hedge benefit may not be considered. Add the Buy leg first, followed by the Sell leg. |
| One leg is rejected or remains pending | The hedge may not be complete, and the margin benefit may not apply as expected. |
| One leg is partially filled | The hedge benefit may be calculated only based on the executed quantity, subject to exchange margin rules. |
| Funds req. does not reduce after adding both legs | The selected legs may not qualify as a valid hedge, or the order sequence may not support the hedge benefit. |
Last updated: 29 Jun 2026