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Futures & Options

Margins – an NSE FAQ

NSE has released a detailed article on margins and how they are calculated. While some elements here are mathematical you can understand how margins work in general.

The one thing you must remember is: Margins are recomputed regularly, a number of times a day. Given that, if you run out of cash to support your margins due to even one bad position, the brokers will square off your positions. You can’t just put on a trade (say an intraday position or an F&O position), check the margin required at that time and then forget about it. Margin recomputations can change a lot of things.

  • Prashanth says:

    >What a single comment can do to the market sentiments is mind-blowing. Our wiseman comes out and churns out a 9-10% GDP number. And the market zooms 3+%. How come they are churning out these numbers? How do these d-heads measure GDP and inflation? If you take food-prices and metal prices alone, from the based we had last year, inflation should have been close to 15% (ok, I cooked that up, but it is still a modest number). And GDP? Have we grown at all? I hope they do not keep adding the stock-market turnover to the GDP 😀 What's your take Deepak?
    – Prashanth