Get an insight of intraday and positional trades margin requirement on TradeSmart Currency margin calculator for different contracts and expiries.
September 19, 2018
Stock brokers in India provide a plethora of services to their clients. Have you heard about an additional service called Margin against Securities/Shares (MAS)? What is MAS? ...
A currency margin calculator gives an insight into positional and intraday trade margin requirements among several expiries and contracts. In the currency trading margin, the total number of margin requirements is a total of the exposure and span margin lower than commodity and equity derivatives because of lower volatility into the underlying contract.
NSE currency margin calculator is used to evaluate the number of currency futures that can be traded for an amount of cash available in a trading account.
Span- Standardised Portfolio Analysis of Risk margin calculator is used to evaluate the span margins needed for trades established on the NSE-Currency Derivatives Segment and NSE- Derivatives Segment. Span margin is the up-front margin that is levied by the exchanges when initiating a trade. It is used in calculating span margin requirements for option shorting/writing during trading equity, commodity, Start Currency Derivative Trading, and F&O before taking trades. In addition, it is used in the calculation span and exposure margin needed by the exchanges based on underlying price moments and volatility.
Value at risk margin is used to evaluate the probability of loss of value of a group of assets or an asset. For instance, a portfolio of a few shares or a share based on the analysis of price volatility and price trends.
The extreme loss margin is evaluated on the gross open position of the required member. The gross open position means that the gross of every net position over every client of a member. It aims at covering losses that could occur outside of VaR coverage.
The exposure margin is imposed as a percentage of the value of the contract with span margin. It is imposed over and above the span margin.
The biggest reason behind span margin change is volatility. When there are huge changes in prices, the span margins are reviewed upwards. Once the volatility eases up, margins get back to their floor levels.
Value at risk margin is used to evaluate the probability of loss of value of a group of assets or an asset. For instance, a portfolio of a few shares or a share based on the analysis of price volatility and price trends.
The broker collects the exposure and span margins for positions, following which they are paid to the exchanges to clear the corporation.
