---
title: "What is the required and the final margin in a basket order?"
description: "When you place basket orders on Arrow, you see two types of margin in the basket window:"
category: arrow
subcategory: charts-and-orders
slug: what-is-the-required-and-the-final-margin-in-a-basket-order
canonical: https://support.arrow.trade/arrow/charts-and-orders/what-is-the-required-and-the-final-margin-in-a-basket-order/
---

# What is the required and the final margin in a basket order?

> When you place basket orders on Arrow, you see two types of margin in the basket window:

## Short answer

When you place basket orders on Arrow, you see two types of margin in the basket window:

Required margin refers to the funds you need to place your basket order initially.

Final margin refers to the actual funds that get blocked in your Arrow account after your basket order executes.

The final margin represents the actual amount blocked from your required margin after execution. It is not an additional margin you need to add.

When you place a basket order for options spreads, you initially need the full required margin. However, after execution, only the final margin gets blocked because:

You receive premium when you sell/write options

This premium reduces the actual margin requirement

The system calculates the net position and blocks only the necessary funds

## Example scenario

Suppose you place a basket order for a Nifty options spread:

BUY NIFTY 14th AUG 24350 CE

SELL NIFTY 14th AUG 24500 CE

You need ₹50,343.68 as the required margin to initiate this order, but only ₹38,913.68 gets blocked as the final margin.

## Required margins if orders are placed separately

BUY NIFTY 14th AUG 24350 CE

SELL NIFTY 14th AUG 24500 CE

The total margin required to execute these orders separately is ₹2,31,766.42, but after hedge benefit, the required margin is ₹50,343.68. As you hold a short option position, you receive a premium of approximately ₹11,430. The system uses this premium to offset your margin requirement, bringing the final margin to ₹38,913.68.

## Related

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Source: https://support.arrow.trade/arrow/charts-and-orders/what-is-the-required-and-the-final-margin-in-a-basket-order/
Publisher: Arrow / iRage Broking Services LLP