A margin requirement is the minimum amount of cash an investor must maintain in a brokerage account when trading on margin or with certain derivatives. This margin acts as a down payment for an investment, while your broker funds the rest.

The 'Required' margin shows the total margin that will be required once all the orders are executed successfully.

Make a note that your current trades are funded by existing margin. But as soon as these trades are executed, you need to replenish the ‘margin’ as mandated.

Please note that order sequence matters during execution for margin utilisation. While placing orders, you may need more margin temporarily due to the execution sequence.

Why temporary margin might be higher?

During execution, each order is placed sequentially. If a margin-reducing order (like a hedge) is placed later in the sequence, you will need extra margin temporarily for executing other orders until that order executes.

Example:

• You are creating a covered strategy with a buy option (hedge) and a short option.
• If the short option executes first, you need full margin for it.
• Once the buy option executes, the margin requirement drops due to hedging benefit.
• The 'Required' margin shows this final, lower amount.