hi everyone,

one leg is broken means your order is not properly transmitted. for example, you wanted to sell one put and sell one call, and the short call is not honoured after transmitting the short put, you are in a naked call position.

If both call and put get transmitted, but one leg gets assignment, it has no impact on the direction. If the short put is assigned before short call, you will long the underlying, and a short call. This is called covered call selling. Sun called it ITM covered call writing, I guess. Right, Sun?

Probably the online software/broker of commodities trading is not that well developed as Eugene said commodities are traditionally floor based trading. I hope it won't happen to stock/index. So far I do not have such problem..touch wood.

JK

one leg is broken what does it mean?

When you are doing a short guts you are in a naked position (both call and put), it doesn't matter if 1 leg is filled or both leg is filled, the setup itself is in naked position. Of course if only 1 leg is fill then margin will be higher as compare to both leg is filled.

One leg is broken refer to market goes beyond your short call or short put. This is different from selling a strangle (OTM call and put). Strangle is easier to understand. Anyway back to short guts, when your market is above your short call (your short call will expire worthless or lesser in value since it is no long ITM but OTM) you are left with a very high risk naked put position which is now very deep deep ITM (margin will be extremely high now) most broker will not take this kind of trade unless your account have sufficient margin. When you have both leg which is ITM the losses on 1 side is offset by the gain on the other side so at least you are protected in the zone. But when 1 side is broken you are left with 1 side that is deep deep ITM.

that is my understanding of 1 leg is broken, ADMIS HK is definetly not margin friendly in this scenario and best to avoid them. you never know when your 1 leg is broken