CAPITAL DAILY MARGIN FILE IN VALUE AS ON Symbol, Expiry Date, Instrument Type, Lot Size, Initial Margin, Exposure Margin, Total Margin. Samco’s SPAN Margin Calculator is the first Online tool in India which gives you Equity Derivatives Margin Calculator – NSE F&O Market Segments. Swastika Investmart gives Span Margin file on a daily basis. Futures and Options (f&o) traders need to have a sufficient amount of margin in their accounts to.
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Subsequently, sectoral indices were also permitted for derivatives trading subject to fulfilling the eligibility criteria.
NSE F&O Span Margin Calculator | Margins for Intraday Trading – Samco
Magrin level of initial margin on Martin Futures Contracts shall be related to the risk of loss on the position. SEBI has prescribed a networth requirement of Rs. An Option to margi is called Call option and option to sell is called Put option. The concept of value-at-risk shall be used in calculating required level of initial margins. Balance Sheet Networth Requirements: Every clearing member both clearing members and self-clearing members has to maintain at least Rs. What are the various membership categories in the derivatives market?
The mrgin expires on a pre-specified date which is called the expiry date of the contract. Futures contract based on an index i. The Member is also required to enter into the Member-client agreement with all his clients. Select Under Securities Contracts Regulations Act, options on securities has been defined as “option in securities” means a contract for the purchase or sale of a right to buy or sell, or a right to buy and sell, securities in future, and includes a teji, a mandi, a teji mandi, a galli, a put, a call or a put and call in securities.
Capital Span Margin
As in the case of futures contracts, option contracts can be also be settled by delivery of the underlying asset or cash. The derivatives exchange recognizes the persons recommended by the Trading Member and only such persons are authorized to act as sales personnel of the TM. The Standing Committee on Finance, a Parliamentary Committee, at the time of recommending amendment to Securities Contract Regulation Act, had recommended that the minimum contract size of derivative contracts traded in the Indian Markets should be pegged not below Rs.
The price at which the option is to be exercised is called Strike price or Exercise price. The member is required to get the Know-your-client form filled by every client.
Derivative trading to take place through an online screen based Trading System. In Februarythe Exchanges were advised to re-align the contracts sizes of existing derivative contracts to Rs.
The stock shall be chosen from amongst the top stocks in terms of average daily market capitalisation and average daily traded value in the previous six month on a rolling basis. Further, if an option that is exercisable on or before the expiry date is called American option and one that is exercisable only on expiry date, is called European option.
The derivatives member must educate his client on the risks of derivatives by providing a copy of the Risk disclosure document to the client. Indices that represent the whole market are broad based indices and those that represent a particular sector are sectoral indices.
The following conditions stipulations have been laid by SEBI on the regulation of sales practices: Derivative products have been introduced in a phased manner starting with Index Futures Contracts in June Index Option Contracts are generally European Style options i.
These contracts derive their value from the value of the underlying index. This request for exercise is submitted to the Exchange, which randomly assigns the exercise request to the sellers of the options, who are obligated to settle the terms of the contract within a specified time frame.
What derivatives contracts are permitted by SEBI? What are requirements for a Member with regard to the conduct of his business? Some of the important eligibility conditions are – 1. By its very nature, index cannot be delivered on maturity of the Index futures or Index option contracts therefore, these contracts are essentially cash settled on Expiry. The various types of membership in the derivatives market are as follows: What is the structure of deravatives markets in India?
Equity Derivatives Margin Calculator – NSE F&O Market Segments
Securities In Ban Period for Dec For all investors looking to unearth stocks that are poised to move. However, if fo stock does not fulfill the eligibility criteria for 3 consecutive months after being admitted to derivatives trading, then derivative contracts on such a stock would be discontinued.
Based on this recommendation SEBI has specified that the value of a derivative contract should not be less than Rs. Therefore, in the case of American margiin the buyer has the right to exercise the option at anytime on or before the expiry date.
The index is required to fulfill the eligibility criteria even after derivatives trading margn the index has begun. The underlying asset could include securities, an index of prices of securities etc.
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