hi,
can anyone please let me know. I am designing an excel sheet for tracking my derivatives positions are these formulas for calculating margin requirement aka Total Investment and Profit. Please help me guys I would be more than happy to distribute that excel sheet once it is done.
1. Buying Futures: It does not matter if it is an index futures or stock futures the formula remains the same.
a. Total Investment = Buying Price X Lot Size (Standardized) X No of Lots X (Margin Required/100)
b. Profit Calculation = (Current Price Buying Price) X Lot Size (Standardized) X No of Lots
2. Selling Futures: It does not matter if it is an index futures or stock futures the formula remains the same.
a. Total Investment = Buying Price X Lot Size (Standardized) X No of Lots X (Margin Required/100)
b. Profit Calculation = (Buying Price Current Price) X Lot Size (Standardized) X No of Lots
3. Buying Calls: Call is an option instrument which states that the buyer has the right to acquire the shares at a particular price within a specified time. The buyer of the call only pays a premium amount upfront. The calculation for both Stock Options and Index Options remains the same.
a. Total Investment = Premium Paid (Buying Price) X Lot Size (Standardized) X No of Lots
b. Profit Calculation = (Current Price - Premium Paid) X Lot Size (Standardized) X No of Lots
4. Buying Puts: Put is an option instrument which states that the buyer has the right to sell the shares at a particular price within a specified time. The buyer of a put only pays the premium amount upfrom. The calculation for both Stock Puts and Index Puts remains the same.
a. Total Investment = Premium Paid (Buying Price) X Lot Size (Standardized) X No of Lots
b. Profit Calculation = (Current Price - Premium Paid) X Lot Size (Standardized) X No of Lots
5.Selling Calls: Selling calls means someone agrees to take the risk of delivering shares at a particular price within a specified period in return for some risk premium. Selling calls for Index or for Stock is the same thing.
a. Total Investment = Strike Price (Price of the Underlying) X Lot Size (Standardized) X No of Lots X (Margin Required/100) - Premium Received X Lot Size (Standardized) X No of Lots
b. Profit Calculation = (Premium Received Current Price) X Lot Size (Standardized) X No of Lots
6. Selling Puts: Selling puts means someone agrees to take the risk of buying shares at a particular price within a specified period of time in return for a risk premium. Selling calls for Index or for Stock is the same thing.
a. Total Investment = Strike Price (Price of the Underlying) X Lot Size (Standardized) X No of Lots X (Margin Required/100) - Premium Received X Lot Size (Standardized) X No of Lots
b. Profit Calculation = (Premium Received Current Price) X Lot Size (Standardized) X No of Lots
Please let me know guys. Many thanks !
can anyone please let me know. I am designing an excel sheet for tracking my derivatives positions are these formulas for calculating margin requirement aka Total Investment and Profit. Please help me guys I would be more than happy to distribute that excel sheet once it is done.
1. Buying Futures: It does not matter if it is an index futures or stock futures the formula remains the same.
a. Total Investment = Buying Price X Lot Size (Standardized) X No of Lots X (Margin Required/100)
b. Profit Calculation = (Current Price Buying Price) X Lot Size (Standardized) X No of Lots
2. Selling Futures: It does not matter if it is an index futures or stock futures the formula remains the same.
a. Total Investment = Buying Price X Lot Size (Standardized) X No of Lots X (Margin Required/100)
b. Profit Calculation = (Buying Price Current Price) X Lot Size (Standardized) X No of Lots
3. Buying Calls: Call is an option instrument which states that the buyer has the right to acquire the shares at a particular price within a specified time. The buyer of the call only pays a premium amount upfront. The calculation for both Stock Options and Index Options remains the same.
a. Total Investment = Premium Paid (Buying Price) X Lot Size (Standardized) X No of Lots
b. Profit Calculation = (Current Price - Premium Paid) X Lot Size (Standardized) X No of Lots
4. Buying Puts: Put is an option instrument which states that the buyer has the right to sell the shares at a particular price within a specified time. The buyer of a put only pays the premium amount upfrom. The calculation for both Stock Puts and Index Puts remains the same.
a. Total Investment = Premium Paid (Buying Price) X Lot Size (Standardized) X No of Lots
b. Profit Calculation = (Current Price - Premium Paid) X Lot Size (Standardized) X No of Lots
5.Selling Calls: Selling calls means someone agrees to take the risk of delivering shares at a particular price within a specified period in return for some risk premium. Selling calls for Index or for Stock is the same thing.
a. Total Investment = Strike Price (Price of the Underlying) X Lot Size (Standardized) X No of Lots X (Margin Required/100) - Premium Received X Lot Size (Standardized) X No of Lots
b. Profit Calculation = (Premium Received Current Price) X Lot Size (Standardized) X No of Lots
6. Selling Puts: Selling puts means someone agrees to take the risk of buying shares at a particular price within a specified period of time in return for a risk premium. Selling calls for Index or for Stock is the same thing.
a. Total Investment = Strike Price (Price of the Underlying) X Lot Size (Standardized) X No of Lots X (Margin Required/100) - Premium Received X Lot Size (Standardized) X No of Lots
b. Profit Calculation = (Premium Received Current Price) X Lot Size (Standardized) X No of Lots
Please let me know guys. Many thanks !