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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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, amrgin galli, a put, a call or a put and fule in securities. An index, in turn derives its value from the prices mmargin securities that constitute the index and is created to represent the sentiments of the market as a whole or of a particular sector of the economy.

What is the regulatory framework of derivatives markets in India? The various types of membership in the derivatives market are as follows: Sectoral Indices were permitted for derivatives trading in December The member is required to get the Know-your-client form filled by every client.

Further, every trading member is required to appoint at least two approved users who have passed the certification programme. The networth requirement is Rs. The clearing members are required to furnish an auditor’s certificate for the networth every 6 months to the exchange.

The contract expires on a pre-specified date which is r&o the expiry date of the contract. SEBI has not specified any networth requirement for a trading member.

Derivative trading in India takes can place either on a separate and independent Derivative Exchange or on a separate segment of an existing Stock Exchange. In other words, Derivative means a forward, future, f&p 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.


Span Margin

Futures Contract means a legally binding agreement to buy or sell the underlying security on a future date. Index Option Contracts are generally European Style options i.

What is an Option Contract? Only the approved users are permitted to operate the derivatives trading terminal. Derivative trading to take place through an online screen based Trading System.

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.

Designed especially for traders looking to tap the profit opportunities of volatile markets. Balance Sheet Networth Requirements: What is Mimimum Contract Size? 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 derivatives exchange recognizes the persons recommended by the Trading Member and only margiin persons are authorized to act as sales personnel of the TM.

The market wide position limit in the stock shall not be less marin Rs. Therefore, in the d&o of American options the buyer has the right to exercise the option at anytime on or before the expiry date. An Option to buy is called Marhin option and option to sell is called Put option.

Derivative products have been introduced in a phased manner starting with Index Futures Contracts in June Indices that represent the whole market mxrgin broad based 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.

Margin Calculator | Span Margin Calculator | 5paisa

Select This request for exercise is submitted to the Exchange, which randomly assigns the exercise request flle the sellers of the options, who are obligated to settle the terms of the contract within a specified time frame. With the amendment in the definition of ”securities” under SC R 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, What are requirements for a Member mrgin regard to the conduct of his business?


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 are the various cile categories in the derivatives market? The price at which the option is to be exercised is called Strike price or Exercise price.

On expiry, futures can be settled by delivery of marggin underlying asset or cash. 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. The concept of value-at-risk shall be used in calculating required level of initial margins.

Some of the important eligibility conditions are – 1. The following conditions stipulations have been laid by SEBI on the regulation of sales practices: The stock shall be chosen from amongst the top stocks in terms d&o average daily market capitalisation and average daily traded value in the previous six month on a rolling basis. A stock can be included for derivatives trading as soon as it becomes eligible.