Hedge Benefit

What happens if I square off one leg and hedge is broken?

If any leg of the hedge is squared off, the hedge margin benefit is removed  immediately, and the remaining leg of position attracts the full margin requirement. If the margin required for that remaining leg of position is not available in your trading account, the system will square-off that remaining leg of position partially or fully, depending upon the amount of margin shortfall. Hence, it is always suggested to maintain sufficient funds in your F&O allocation before breaking any hedge.