Understanding Margin

[manishchan]

Thanks again for your reply

I have actually read the link that you have send.
I really want to understand the concept in detailed. Hence would like to read book which will explain the concept in detailed with example

For example The link talks about notional value but nowhere they have specified what is the meaning of notional value

Notional value is nothing but the total amount ie .. nifty is purchased in the lot of 25 quanitity.. so at present value.. 8370*25 = 2,09,205 is the Notional Value. Now based on this.. NSE decides the margin for the broker and then broker decides margin for its client..etc

 

[payal 1986]

Thank you every body for replying my querry. The link is very useful. Atleast i can verify whether my broker demand for margin is genuine or he is using money for some other purpose

 

[ROKU]

You can go to read Zerodha Z-connect blog on option greeks to get a more detailed knowledge-http://zerodha.com/z-connect/queries/stock-and-fo-queries/application-of-option-greeks

 

[Clean India]

Hi

Is the margin properly calculated by span calculator of the following link

https://zerodha.com/margin-calculator/SPAN/

Here margin requirement for 1 lot of ABIRLANUVO Nov expiry contract is RS 66716

Kindly refer following link of same website

https://zerodha.com/margin-calculator/Futures/

The NRML margin requirement for 1 lot of ABIRLANUVO Nov expiry contract is RS 52690

Just confused how can same website give different margin for same contract and same expiry. I have taken both the view today

 

[stocknewbie]

Hi

....

Just confused how can same website give different margin for same contract and same expiry. I have taken both the view today

The difference is due to SPAN margin and EXPOSURE margin.
http://www.nseindia.com/products/content/derivatives/equities/margins.htm