Online trading Vocabulory

#1
Hello All,
This is my first post on this site, And I never purchased any stock, Few days back I open a demat account and online trading account.
When I logged in into my online trading account, I found many new tearms to decide the order for good return.
can any stock guru teach me the following vocabulory in simple words --
1) What is "Lot Size"?
2) What is "SPAN Margin"?
3) What is "Exposure Margin"?
4) What is "Total Margin"?
5) What is "SPAN%"?
6) What is "Exposure Margin%"?
7) What is "Total Margin%"?
8) What is "Net Future value"?

How can I use thease parameters to purchasing the Stock

Thanks in advance
Regards
Renu
 

mahesh2007

Active Member
#4
Code:
1) What is "Lot Size"?
this is no. of undelying securities in one contract.
for ex. 1 contrct of Nifty has 50 nifty as underlyings.

2) What is "SPAN Margin"?
SPAN is an acronym of standardized portfolio analysis of risk.SPAN margin is a leading margin system accepted by major exchanges of the world. Future trader and option writers are required to maintain sufficient margin in their account. this margin system calculates the same.margin is initial token payment.

Code:
3) What is "Exposure Margin"?
it is expressed in % of notional value of the contract.

Code:
4) What is "Total Margin"?
Itis sum of (1) initial(SPAN) margin(2) exposure margin
there are also other magins for option writer.

Code:
5) What is "SPAN%"?
6) What is "Exposure Margin%"?
7) What is "Total Margin%"?
for further details visit-
http://www.bseindia.com/downloads/faqsrs.pdf
 

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