Exposure Confusion

iamNeel

New Member
#1
My broker allows 20 times exposure in intraday for commodity, for example 1 lot crude oil you need to have only rs.1500 as margin money to trade as crude oil price was 3000+ (30000) at that time, in gold only 7500 (150000) and etc etc. Now I am entering in stock market, they will provide me 20 times exposure in equity cash for intraday too. Now what will be the least margin money to trade on equity cash for some bluchips stocks like SBIN INFY BHEL etc etc with 20 times exposure ? as these stocks have different lot size and I have never traded on equity.
 

vijkris

Learner and Follower
#2
My broker allows 20 times exposure in intraday for commodity, for example 1 lot crude oil you need to have only rs.1500 as margin money to trade as crude oil price was 3000+ (30000) at that time, in gold only 7500 (150000) and etc etc. Now I am entering in stock market, they will provide me 20 times exposure in equity cash for intraday too. Now what will be the least margin money to trade on equity cash for some bluchips stocks like SBIN INFY BHEL etc etc with 20 times exposure ? as these stocks have different lot size and I have never traded on equity.
Equity cash stocks have same lot size , i.e 1 share.
so basically for 1000 rs margin u can buy upto 20k worth of shares.
 

iamNeel

New Member
#3
Equity cash stocks have same lot size , i.e 1 share.
so basically for 1000 rs margin u can buy upto 20k worth of shares.

do I have to buy whole lot of share in intraday cash ?

Plz give an example with SBIN (3000 lot size) cmp 230 (suppose) with 20 times exposure, so what will be my posted trade value with 1 lot?
 

vijkris

Learner and Follower
#4
do I have to buy whole lot of share in intraday cash ?

Plz give an example with SBIN (3000 lot size) cmp 230 (suppose) with 20 times exposure, so what will be my posted trade value with 1 lot?
you r getting confused.
"lots" will come into play only if u trade in futures(NFO).
in futures compulsorily u have to buy 1 lot, i.e 3000 shares. it is fixed.

in Eq cash segment u have freedom to buy any amount of shares. even 1 share worth 230 rs.
so as an eg. for 20k worth of margin approx 90 shares of sbi can be bought.

go thru zerodha varsity section for further details. :thumb:
 

iamNeel

New Member
#6
But in mcx we trade on future contracts, so we have to buy complete lot, example mcx crude has 100 lot size, so per point rs.100 , but if crude price is 3000, then calculation is 3000X100=3,00,000 , but why it is said that mcx crude has 30,000 price? If it's 3lac then how can I trade it with only rs.1500 , I thought it's 30000÷20 times exposure=1500,
 

nac

Well-Known Member
#7
But in mcx we trade on future contracts, so we have to buy complete lot, example mcx crude has 100 lot size, so per point rs.100 , but if crude price is 3000, then calculation is 3000X100=3,00,000 , but why it is said that mcx crude has 30,000 price? If it's 3lac then how can I trade it with only rs.1500 , I thought it's 30000÷20 times exposure=1500,
I don't trade commodity. But I don't think you can take a future contract worth 3L with just 1500/-.

In futures, something called "margin" which is something like 10% or 20% etc of the contract worth. Going by your crude price and lot size, if it's 10% margin required for crude, 30k is enough to trade one lot crude.
 

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