Detailed View. What are Derivatives? The term "Derivative" indicates that it has no independent value, i. In other words, Derivative means a forward, future, option or any other hybrid contract of pre determined fixed duration, linked for the purpose of contract fulfillment to the value of a specified real or financial asset or to an index of securities. What is a Futures Contract?
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Nifty Futures. Normal Margin. Near month contract. Nov How many lots can I buy? Margin Available. Intraday MIS margin. Nifty Price. Lot Size. Value of one lot. The ELM margin is also known as the exposure margin.
However, if you want to pay lower margins, then you can opt for an intraday trade. This intraday has to strictly closed intraday and if the trader does not close the trade then the broker RMS will close the trade automatically around 3. If you want still more leverage, then you can opt for Cover Order. In a cover order, you put the stop loss as part of the order and in that case since your risk is limited still further, you get higher leverage. In the above instance, the trader can move from buying just 6 lots in normal order to buying 21 lots in the intraday order and right up to 62 lots in case of cover order.
Of course, while the Normal margins are fixed by the exchange, the amount of leverage to be given on intraday orders and on cover orders is something the broker has the discretion to decide. Bank Nifty currently has a lot size of 20 units so the minimum lot value will be Rs. Let us check the margining below. Bank Nifty Futures. Mid month contract. Dec Bank Nifty Price. Other Popular Articles. Difference between the order book and the trade book.
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There is no assurance or guarantee of the returns. Investment in securities market are subject to market risk, read all the related documents carefully before investing. Website: www. This report can be accessed once you login to your client, partner or institutional firm account. Home Article. What is the margin payable on one lot of futures?
Frankly, it will depend on a lot of factors. For example, whether the contract is for near month, mid-month or far month will make an impact. Secondly, the margins will also depend on whether the stock in question is volatile or flat.
A volatile stock will attract more margins. Thirdly, margins are also impacted by whether the trade is normal trade, intraday MIS trade or cover order. Let us simulate different situations and see the impact of margin simulation in all these situations.
Let us also understand how to calculate initial margins for futures and types of margins in future contract with distinct futures margin examples. Here is how to go about it.
Buying Nifty near month Nov futures Nifty currently has a lot size of 75 units so the minimum lot value will be Rs. In the case of Bank Nifty, the leverage potential is huge since one can place a cover order and buy up to 94 lots with a margin of just Rs.
Of course, futures are leveraged and just as profits can multiply even the losses can multiply. Difference between the order book and the trade book What is the difference between the value and price of a stock?
FB Comments Other Comments. Submit Your Comments. Read More Discover top 5 reasons to invest your money with blue chip companies Blue chip companies are reputed and well-established companies that are lis Read More We all know that a call option is a right to buy and a put option is a righ Read More Click to Register. Datsons Labs Ltd. Stock Directory. Mutual Fund Directory. Commodity Directory. Glossary Directory. Office Locator. Motilal Oswal Financial Services Limited. Motilal Oswal Commodities Broker Pvt.
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The calculation is done on the lot size. Exposure Margin: Rs: 0. Total Margin: Rs: 0. SPAN Margin is a calculation by standardized portfolio analysis of risk algorithm , used by most exchanges around the world. Basic question answered in this section - How much margin I need when I buy or sell one lot of Nifty in futures or options? Depend on your available margin you can add any numbers of contracts and remove any contract from list.
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F&O Margin Calculator