Margin exposure on Futures trading

[alroyraj]

Here is example. RK FNO margin for Vijayabank is 1.24 Lac, Motilal Oswal takes 88 K & Angel takes 94 K. AshokLeyland - RK says 59K, others say 45 K.
I gone thru list, found RK takes much more margin than others. Have someone seen?

Good observation till now no one noticed it. Also most people using RKG trade mostly on Nifty futures and Options.

I am located in Pune. Do message me the brokers you know. Thanks in advance

Message sent.

 

[mrkanitkar]

Here are some more examples of more margin required by RK on FNO.
Bajaj -auto - RK - 70616 Others - 53707, BajajHind - RK - 49760 Others-36930, TCS - RK - 89972, Others 66103/-, TATASTEEL - RK - 56167/- others- 43211/-
Syndibank - RK- 89340/- others - 67260/-

Some brokers give leverage on FNO as like Indiabulls etc. It means if you are intraday fno then you can buy one lot of nifty even if you have 10K INR in account and the brokerage is 4 paisa for both legs.

What makes sense, low brokerage and more margin or standard brokerage (1-3 paisa per leg) and standard margin + leverage?

I myself trying to find answer for this.

 

[alroyraj]

Here are some more examples of more margin required by RK on FNO.
Bajaj -auto - RK - 70616 Others - 53707, BajajHind - RK - 49760 Others-36930, TCS - RK - 89972, Others 66103/-, TATASTEEL - RK - 56167/- others- 43211/-
Syndibank - RK- 89340/- others - 67260/-

Some brokers give leverage on FNO as like Indiabulls etc. It means if you are intraday fno then you can buy one lot of nifty even if you have 10K INR in account and the brokerage is 4 paisa for both legs.

What makes sense, low brokerage and more margin or standard brokerage (1-3 paisa per leg) and standard margin + leverage?

I myself trying to find answer for this.

One mini nifty lot for 10k, one nifty lot for 25k. Yes but I get your point.
It all boils down to volumes. One needs to have volumes to justify paying the monthly software maintenance charges and also capital to cover the margin requirements. The ideal one is to have a brokerage of 0.01% intraday as it saves you the compulsion to maintain volumes when you are starting out.
Simple if you plan to sell and buy 4/5 contracts per day,it makes sense to go for RKG otherwise 0.01% is decent enough. I checked ur figures Indiabulls need s margin of 54420 Rs at todays current price for delivery and half of that for intraday.

Also in terms of about capital you have if you have say upto a 1.5 lakh then its 0.01% else RKG.

 

[iTrade]

Here are some more examples of more margin required by RK on FNO.
Bajaj -auto - RK - 70616 Others - 53707, BajajHind - RK - 49760 Others-36930, TCS - RK - 89972, Others 66103/-, TATASTEEL - RK - 56167/- others- 43211/-
Syndibank - RK- 89340/- others - 67260/-

Some brokers give leverage on FNO as like Indiabulls etc. It means if you are intraday fno then you can buy one lot of nifty even if you have 10K INR in account and the brokerage is 4 paisa for both legs.

What makes sense, low brokerage and more margin or standard brokerage (1-3 paisa per leg) and standard margin + leverage?

I myself trying to find answer for this.

Lower brokerage obviously. Its simple. Calculate brokerage for 1 lakh turnover daily for 22 days a month and then for 12 months. Do it for high leverage and high brokerage. Then do it again for low leverage and low brokerage.
YOu will find the difference.

 

[alroyraj]

Lower brokerage obviously. Its simple. Calculate brokerage for 1 lakh turnover daily for 22 days a month and then for 12 months. Do it for high leverage and high brokerage. Then do it again for low leverage and low brokerage.
YOu will find the difference.

Excellently put. But let me add to what you said. Say you want to trade everyday,irrespective of market direction then you can only trade with RKG. With a breakeven of 1.85 nifty points (0.036% breakeven)).
With a percentage brokerage plan like 0.02% per leg, it is 3.55 nifty points (0.07% BE). Zameen asman ke farq he.

With the latter scheme you may be able to trade say 13 days per month whereas with RKG with every day.This is the practical aspect assumed 25 trading days a month.

 

[pankaj joshi]

One interesting thing I found, I compared margin for fno in RK is much more than Motilal Oswal and others. e.g. Vijaya bank, RK margin requirement is 1.21 Lac, Motial Oswal needs 88 K only.
Does this mean, RK charges low brokerage and high margin? Can you please help me to understand.

Motilal Oswal is a very good platform for Futures Trading.
As you rightly said it needs only 88k...it also charges decent brokerage..and has good margin.

So overall one can say it is the best platform for futures trading!

 

[mrkanitkar]

Finally going BACK to RKG. BEP makes sense than margin. If you have more margin, play the game else don't.
That's more simple.
:clap: