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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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 margln contract fulfillment to the value of a specified real or financial asset or to an index of securities.
NSE F&O Span Margin Calculator | Margins for Intraday Trading – Samco
What is a Futures Contract? Futures Contract means a legally binding agreement to buy or sell the underlying security on a future date. The contract expires on a pre-specified date which is called the expiry date of the contract.
On expiry, futures can be settled by delivery of the underlying asset or cash. What is an Option Contract? The underlying asset could include securities, an index of prices of securities etc. 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.
An Option to buy is called Call option and option to sell is called Put option. 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.
F&O Market Snapshot: Future and Options NSE, BSE, F&O margin, F&O quotes – Moneycontrol
The price at which the option is to be exercised is called Strike price or Exercise price. Therefore, in the case of American options the buyer has the right to exercise the option at anytime on or before the expiry date.
This margib 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.
As in the case of futures contracts, option contracts can be also be settled by delivery of the underlying asset or cash. Futures contract based on an index i. These contracts derive their value from the value of the underlying index.
Similarly, the options contracts, which are based on some index, are known as Index options contract. Index Option Contracts are generally European Style options i. An index, in turn derives its value from the prices of securities that constitute the index and is created to represent the sentiments of the market fild a whole or of a particular sector of f&p economy.
Indices that represent the whole market are broad maggin indices and those that represent a particular sector are sectoral indices. Subsequently, sectoral indices were also permitted for derivatives trading subject to fulfilling the eligibility criteria. The index is required to fulfill the eligibility criteria even after derivatives trading on the index has begun.
Equity Derivatives Margin Calculator – NSE F&O Market Segments
If the index does not fulfill the criteria for 3 consecutive months, then derivative contracts on such index would be discontinued. 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. What is the structure of deravatives markets in India?
Derivative trading in India takes can place either on a separate and independent Derivative Exchange or on a r&o segment of an existing Stock Exchange. What is the regulatory framework of derivatives markets in India?
With the amendment in the definition of ”securities” under SC Amrgin A to include derivative contracts in the definition of securitiesderivatives trading takes place under the provisions of the Securities Contracts Regulation Act, and the Securities and Exchange Board of India Act, Some of the important eligibility conditions are – 1.
Derivative trading to take place through an online screen based Trading System. The level of initial margin on Index Futures Contracts shall be related to the risk of loss on the position. The concept of value-at-risk shall be used in calculating required level of initial margins.
What are the various membership categories in the derivatives market? The various types of membership in the derivatives market are as follows: Balance Sheet Networth Requirements: SEBI has prescribed a networth requirement of Rs. The clearing members are required to furnish an auditor’s certificate for the networth every 6 months to the exchange. The networth requirement is Rs.
SEBI has not specified any networth requirement for margim trading member. Every clearing member both clearing members and self-clearing members has to maintain at least Rs.
Further, every trading member is required to appoint at least two approved users who have passed the certification programme.
Only the approved users are permitted to operate the derivatives trading terminal. What are requirements for a Member with regard to the conduct of his business? The following conditions stipulations have been laid by SEBI on the regulation of sales practices: 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. These persons who represent the TM are known as Authorised Persons.
The member is required to get the Know-your-client form filled by every client.
The derivatives member must educate his client on the risks of derivatives by providing margjn copy of the Risk disclosure document to the client. The Member is also required to enter into the Member-client agreement with all his clients. What derivatives contracts are permitted by SEBI?
Derivative products have been introduced in a phased manner starting flie Index Futures Contracts in June Sectoral Indices were permitted for derivatives trading in December What is the eligibility criterion for stocks on which derivatives trading may be permitted? A stock on which Stock Option and single Stock Future contracts are proposed to be introduced is required to fulfill the following broad eligibility criteria: The stock shall be chosen margln 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.
The market wide position limit in the mqrgin shall not be less than Rs. A stock can be included for derivatives trading as soon as it becomes eligible.
However, if the 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.
What is Mimimum Contract Size? 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. Based on this recommendation SEBI has specified that the value of a derivative contract should not be less than Rs.
In Februarythe Exchanges were advised to re-align the contracts sizes of existing derivative contracts to Rs. Subsequently, the Exchanges were authorized to align the contracts sizes as and when required in line with the methodology prescribed by SEBI. Designed especially for traders looking to tap the profit opportunities of volatile markets. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express writtern permission of moneycontrol.
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