Mini Nifty futures - Brokerage, Margins and other issues

fast_rizwaan · #1 23rd June 2008, 05:07 PM

Quote:

Hi, I'm trying to venture into derivative trading - especially minifty (nifty) futures. Friends those who wish to trade in Mini nifty Futures, please put your questions, so that this thread becomes useful for newbies in mini nifty/nifty futures.

Please advise on the following:

Going Long or Short on mininifty: Money Required to own a contract:
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1. Initial margin (to own one contract) - is it 8% of the contract value?

i.e., current nifty price x lot size = 4266 * = 85320
(8% of contract value = initial margin) 85320*8/100 = 6825.6

2. Span Margin (to balance market-to-market losses) -

is it 11% of the contract value?
85320 * 11 / 100 = 9385.2

3. To own one mininifty contract i have to have Atleast

Initial Margin + Span Margin = 6825.6 + 9385.2 = 16210.8

So, we would need 16210.8 to own one contract of mininifty, right?

Brokerage Issues:
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4. mini nifty contract brokerage:

what will be the brokerage for the two cases?
A) If I buy a lot of mininifty 20@4270 for the month end,
and squares off on Last Thursday (let expiry happen)
B) If I square-off intraday

Expiry/Rollover:
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5. How to Rollover from this month say June 2008 to July 2008 contract? What are the brokerages and other liabilities for rolling over to next month contract?

I'm trading with Religare, so the brokerage is 0.30+taxes = 0.05 for intraday in equity, and it says 0.30 for derivatives too. are there other charges in derivaties, as I'm coming from equity/cash market.. need your guidance. Thanks in advance.

sanx · #2 23rd June 2008, 05:13 PM

Fast rizwann also menion the brokerage amount one might need to inccur for square off or carry over. like it is ex ~ 200 rs for one way , one contract including tax ,stt ..others.

See if you can mention the taxes also . Nice thread repped .Will be useful to new users.

Also mention what all brokerages will support mini nifty ,so all brokerages allow this ?,like ICICI ,sharekhan ..etc etc .

arm · #3 23rd June 2008, 05:22 PM

icici supports. I think most brokerages will.

To know the margin requirement, in ICICI go to the F&O menu and click the link 'Know your margin'. Margin requirements change depending upon the volatility of the the index.

columbus · #4 23rd June 2008, 05:47 PM

I trade with KARVY. As on 23.6.08 (0927am)these are the INDICATIVE margin for MINIFTY:

scrip--- span--- intraday--- exposure --- intraday --- total
--------- margin --- margin--- margin--- value --- margin

MINIFTY --- 7.87% --- 3.93% --- 3.00% --- 6,011.73--- 9,422.73

It is a great idea to trade FIRST in MiniNifty rather than just jumping directly to Nifty futures/Stock futures.

Next it is better to go for CARRYFORWARD trade rather than INTRADAY trade eventhough you trade intraday.The reason being in case of intraday trades ,they will be squared off at any APPOINTED time (say 3.15 or 3.25pm) irrespective of the fact that you are in + or -.Sometimes it helps also.But on the whole it will do more HARM than HELP.

sanx · #5 23rd June 2008, 06:24 PM

Columbus for futures you don't need to square off on the same day .

columbus · #6 23rd June 2008, 07:12 PM

Quote:

Originally Posted by sanx

Columbus for futures you don't need to square off on the same day .

Dear sanx,

Before putting an order for futurer you have to indicate whether you are buying /selling INTRADAY or CARRY FORWARD futures.Like equities ,intraday FUTURES will be squared off during that day itself.In NORMAL course ,FUTURES will be expired on last THURSDAY of the MONTH.

fast_rizwaan · #7 23rd June 2008, 10:34 PM

Traderji, Saint, Uashish, CV, Savant, Hari.. and future traders please enlighten..

columbus · #8 23rd June 2008, 10:53 PM

Rizwaan,

Futures also carry the same taxes as that of Equities, that is ,brokerage,Service Tax, TOT,Stampduty,STT, Educ.Cess and High Edu.cess.

fast_rizwaan · #9 23rd June 2008, 11:53 PM

Quote:

Originally Posted by columbus

Rizwaan,

Futures also carry the same taxes as that of Equities, that is ,brokerage,Service Tax, TOT,Stampduty,STT, Educ.Cess and High Edu.cess.

columbus, please explain:

a. What is the Derivative monthly contract brokerage?
In Equity intraday is 0.03 and Delivery 0.30.
Is there different brokerage for intraday and delivery in futures, like in equity?

b. please see the attachment, I don't know how to carry-forward my position, what is the method, the "buy/sell dialog" is not giving any hint for rolling over either.

And good to see that Stoploss/Sell AMO orders work for futures

pakatil · #10 24th June 2008, 12:22 AM

@fast_rizwaan,

I am trading with Religare since 2 Years.

1.Not sure about percentages, About Rs.13K~ of Margin is blocked in MiNifty Trade. It keeps changing day to day depending on Market volatality. It used to be 17 - 18 K abount a month back.

2.AFIK, there is no Intraday trades. MiNifty is valid till the settlement day. It is your prerogative to close it, be it Intraday or after a few days. Any SL orders are valid for the Day only.

3.Today I Sold @ 4280 (85600) & Covered @ 4250 (8500). Brokerage is as follows :

a.Brokerage @ 0.025% = 42.65
b.Service tax @ 12.36% = 05.27
c.OtherCharges @ 0.0043% = 7.34
d.STT @ 0.017% = 14.00 (Actually 14.55, but rounded off)

e.Total = 69.26

Cheers
PAKatil