Comment on Zerodha F&O margin Calculator

Mayuresh Kemkar commented on 07 Dec 2013, 03:07 PM

Dear Sir,
This is my first query post on the blog, I do not know whether this is right place to post or not , as i have seen Mr. Kamat sir explaining to lot of fellow traders , So I hope that I will get chance to interact with Mr .Nitin Kamath sir …

Please, explain following situation with figures…

Considering I have Rs 30,000/- in my account,

1) Amount of margin that gets blocked to enter long call GBP futures JAN Contract with 5 lots

I can see ( Rs 13,892 ) on span calculator.

So Rs 13,892/- Will be the margin required for this position ..

A live market entry is done.. now,

Account status of 30,000/- will show 13,892 as blocked margin and 30,000 -13,892 = 16,108 INR As available limit.

Is this correct?

If yes, then the next part of the question –

2) Now, I enter a second position with following details ..

Short call GBP futures with 5 lots at the same time on GBP FEB contract – (13,752) Margin as per span calculator,

BUT , as this now is a SPREAD position, span calculator calculates the benefits and shows:-

SPAN margin
Rs: 7,568
Exposure margin
Rs: 5,110
Total margin ?
Rs: 8,422

Now, as you can see, the calculator is showing lot of “SPREAD BENEFIT”

So my question is With above two above positions running,

At which of the following margin value, Zerodha will Automatically cut (square off ) both positions if the margin gets touched

A) When 30,000/- account comes down and touches Rs 13,892 — This was the FIRST call’s margin requirement

OR

B) When 30000/- comes down to Rs 8,422 which is the margin showed by span calculator as BENEFIT because of spread position.

OR
C) If both above are wrong, what is the required margin which MUST always be present so that the position does not get squared off because of touch to margin..

D) Is it applicable for overnight positions?

Dear sir I would like to request you to answer in exact figures (This makes lot of difference to my trading )

Thanks 🙂

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