Margin for Nifty

#3
Hi,
I am paying around Rs.24000/- as the span margin to buy 1 lot of nifty futures and brokerage is around Rs.280/-(both buy and sell and tax). Am I paying more??? Can anybody suggest me a better deal if there is one?

Thanks,

Usha
 
#4
As per SPAN, the margin to buy 100 Nifties (1 lot) today morning is Rs. 12819. Your broker is taking almost 10% of the contract value as Initial Margin. The broker has to collect atleast the SPAN margin, anything more the broker can decide on. Just a way to prevent default in case of abrupt market movements.
 
#6
usha said:
Hi,
I am paying around Rs.24000/- as the span margin to buy 1 lot of nifty futures and brokerage is around Rs.280/-(both buy and sell and tax). Am I paying more??? Can anybody suggest me a better deal if there is one?

Thanks,

Usha
btw which broker terminal you are using.
 
#7
ivanboesky said:
The Initial Margin (as of today morning) to buy one Nifty futures contract is Rs. 12819. That works out to around 5% of the contract value.

Hi Ivan

I checked in my account. if i have to buy a one lot of Nifty
suppose @ 2500 then i have to give a rs=25000/-

so how % it is..


its 10%?? and its same as others charged?
 
Last edited:
#8
Exactly. Your broker is charging you a 10% Initial Margin, while as per SPAN (required by NSE) the margin requirement is Rs 12500, which will work out to around 5% of the contract value. Your broker is just taking extra Initial Margin to prevent against default.
 
#9
ivanboesky said:
Exactly. Your broker is charging you a 10% Initial Margin, while as per SPAN (required by NSE) the margin requirement is Rs 12500, which will work out to around 5% of the contract value. Your broker is just taking extra Initial Margin to prevent against default.

At present my broker is indiabulls..
and can i talk with them regarding 5% Extra Margin requirements.
 
#10
I guess you can speak to them, but dont know if they will reduce the Initial Margin. Its a risk containment measure for them, and since they cater to the retail crowd, they'll be loath to reduce the Initial Margin.
 

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