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Follow 2 steps to set dynamic hedge

Tick the ‘Hedge Req’ tick box under the main leg.
Set the Settings under Dynamic Hedge’s Tab

Dynamic hedge settings had 2 fields
Mandatory and optional field

Minimum Hedge Distance.
Here you can set the Minimum distance from the ATM for Hedge leg.
Suppose NIFTY ATM is 17800 and we have set Minimum distance as 15 then the system will start checking for CE hedge after the 18550 strike.

Maximum Hedge Distance.
Here you can set the Maximum distance from the ATM for Hedge leg.
Suppose NIFTY ATM is 17800 and we have set Maximum distance as 40 then the system will check for best match CE hedge till the 19800 strike.
In the above case System will check for best hedge match as per settings between 18550 and 19800 strikes only.

Maximum Premium.
Here you can set the Maximum Premium for any hedges.
such as 5,10

Unsatisfied Condition Action.
Set it wisely as if the System is unable to find the proper hedge as per set conditions, it may stop execution of the Portfolio.

optional field

Max CE / PE Spread.
Here you can set the maximum distance between CE / PE hedges. This will be applicable when CE and PE both go into execution at the same time.
If this is set the System will try to find the hedges within the mentioned range. If it is unable to find within the mentioned range, then it will proceed with the nearest one.
Example: Suppose Max CE / PE Spread is set to 1 and if CE hedge selected as 1.15 and it will try to find the PE between 0.15 to 2.15

Strike Step
Here you can set the Strike Step for Hedges selection. Suppose users want to find the hedges only in 100 strikes for NIFTY then they can mention 100 as strike step, similarly if the user wants to use only 500 strikes for the hedges then he can mention 500 here.

Select Only 500 strikes for NIFTY and BANKNIFTY.
If tick, this will just set the Strike Step as 500.

Suggested Legs
After setting the hedge settings, you can click this button to see the expected hedges which might have been bought by the system if the portfolio was in execution at the current time.
This is only for reference purposes and This will show hedges for the current time only, however actual hedges can be changed at actual execution time depending upon the conditions at that time.