Comment on Zerodha F&O margin Calculator

Karthikeyan commented on 23 Sep 2016, 12:21 PM

I want to buy OCT 2016 Reliance futures at CMP – 1100 for which your margin calculator says the Initial Margin(IM) is Rs 41000, Exposure Margin(EM) is 27000 and hence the Total Margin Requirement is Rs 68000 (IM + EM), I have a question. Does the above mean, that I need to block 68000 to execute the trade? secondly, if I block 68000 and execute the trade, and carry it overnight (NRML), what will be my total loss in case of market crash – will it be 41000 (assuming Reliance, having a lot size of 500 goes down by Rs 82 on its opening) or the full 68000?

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