Online trading Vocabulory

renu_1986 · #1 30th July 2008, 05:49 AM

Hello All,
This is my first post on this site, And I never purchased any stock, Few days back I open a demat account and online trading account.
When I logged in into my online trading account, I found many new tearms to decide the order for good return.
can any stock guru teach me the following vocabulory in simple words --
1) What is "Lot Size"?
2) What is "SPAN Margin"?
3) What is "Exposure Margin"?
4) What is "Total Margin"?
5) What is "SPAN%"?
6) What is "Exposure Margin%"?
7) What is "Total Margin%"?
8) What is "Net Future value"?

How can I use thease parameters to purchasing the Stock

Thanks in advance
Regards
Renu

ashu_dabhi · #2 30th July 2008, 04:55 PM

from which broker you have open the demat account

renu_1986 · #3 31st July 2008, 05:09 AM

I am with naviamarkets, I appreciate if you could reply my questions

mahesh2007 · #4 31st July 2008, 07:33 AM

Code:

1) What is "Lot Size"?

this is no. of undelying securities in one contract.
for ex. 1 contrct of Nifty has 50 nifty as underlyings.

2) What is "SPAN Margin"?
SPAN is an acronym of standardized portfolio analysis of risk.SPAN margin is a leading margin system accepted by major exchanges of the world. Future trader and option writers are required to maintain sufficient margin in their account. this margin system calculates the same.margin is initial token payment.

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3) What is "Exposure Margin"?

it is expressed in % of notional value of the contract.

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4) What is "Total Margin"?

Itis sum of (1) initial(SPAN) margin(2) exposure margin
there are also other magins for option writer.

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5) What is "SPAN%"?
6) What is "Exposure Margin%"?
7) What is "Total Margin%"?

for further details visit-
http://www.bseindia.com/downloads/faqsrs.pdf

The Following 2 Users Say Thank You to mahesh2007 For This Useful Post:
babidash@hotmail.com (31st July 2008), punterji (6th November 2008)