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  #31 (permalink)  
Old 07-09-2012, 03:52 PM
Compositedge Compositedge is offline
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Hi!Uber trader,

The brokerage we charge on options is Rs.25/- or 0.006% whichever is lower per executed order.This includes the strike price.If a person does stock/index options it will include the strike price.As Rs.25/- is the maximum brokerage to be charged it does not matter for more than 1 lot of Nifty.But there are lot of scrips which are quoting below Rs.100 which are available in Futures & Options.If someone does 1 lot of IFCI 25 call option @ 50 paise brokerage will be calculated on Rs.25.5X8000x0.006% which will come to Rs.13/-We will charge only Rs.13/- & not Rs.25/-.Our progressive reduction of Brokerage per executed order is not time bound.You are free to qualify at your own pace & the offer is for lifeterm.

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  #32 (permalink)  
Old 18-09-2012, 11:53 AM
Cool Trader Cool Trader is offline
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Hi!

I am unable to fill up my Trading application online.It appears your EKYC form works only on IE6.I am not interested to download IE6 as I am using Google chrome as my browser.What are my options????????

Cool Trader
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  #33 (permalink)  
Old 18-09-2012, 04:19 PM
Compositedge Compositedge is offline
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Hey!Cool trader,

You have another option - Download the application form to your machine .The application form is in the Fillable format.One can also save the form till when it is filled & get back to it whenever you have the time.This option is next to the EKYC option in our website.Our EKYC form works only on IE6 & above currently.We are working on & will have a solution soon for other users(IE)

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  #34 (permalink)  
Old 19-09-2012, 08:48 AM
veeemkay veeemkay is offline
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I have a question about SPAN margin?

My understanding is that usually SPAN margin is on a Portfolio.

I just want to confirm with you that
If i have a multileg options strategy in place will the margin blocked be according to individual options or will it be blocked on the complete multileg option strategy.

e.g. Sell Call 5500 + Sell Put 5500 (same expiry): In this case will i have to put up margin for 2 options OR 1 option (since it will be impossible that i will be on the loosing side of both the above options at expiry)

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VK
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  #35 (permalink)  
Old 20-09-2012, 03:29 PM
Compositedge Compositedge is offline
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Hi Veeemkay,
Yes, Span margins are portfolio based margins. However in your case since you are writing a straddle, margins on both the sell legs will be applicable. However you would get credit for the premiums that you would receive which would offset the margins to some extent.
It is possible with this position to be on the loosing side if the movement of Nifty is beyond the premium that you would receive as you are not hedged
Sorry for the delay in replying...
CE
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  #36 (permalink)  
Old 20-09-2012, 09:00 PM
veeemkay veeemkay is offline
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Thanks for the reply.

Let me put it in a different way. It is impossible for the Nifty to expire at 5800 and 5200 at the same time.

Put it differently out of the 2 options sold.. only one will be in loosing side the nature of the strategy is such that the other will be winning if one is loosing. Hence ideally margin for only one side should be blocked.

Anyways typically what is the margin blocked for 1 lot of nifty sold.

VK
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  #37 (permalink)  
Old 21-09-2012, 11:05 AM
Compositedge Compositedge is offline
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Hi Veeemkay,
I do agree that only one will be on the loosing side. However the loss on the other side could far exceed the premiums received. This strategy has limited profits equal to your premiums recd. and unlimited losses. This is ideal for a non-trending market where there is only a time decay without a major movement in the indices. Hence exchange will collect margins for each option separately.
The margin blocked for one lot of nifty sold would be approx Rs.25000/-. Premium credit on the sale will be given to you. I hope I have been able to clarify ....
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CE
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  #38 (permalink)  
Old 21-09-2012, 11:57 AM
veeemkay veeemkay is offline
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Yes i understand. But i believe every broken is going to ask for more margin to be put up as and when the sold option position will get more and more negative. e.g. if 5500 straddle is sold for 250 credit, I am sure the Broker will ask for more margin if the marget moves. In fact the broker will ask for more margin much before it starts to move out of the 5250 and 5750 range. 25000 margin for single option means approximately 500 points movement. and for a straddle since it is 2 options sold it will be 50000 margin i.e. 1000 points movement (since at a given point nifty can be at only one price level either below or above 5500).

Pls correct me if i am wrong, is SPAN not calculated on a VaR basis for the portfolio on a single day? So in case i look at a portfolio as the above case dont you think 1000 points for a single day is exceptionally huge margin.

Is it that the exchange passes on the SPAN margin to Brokers but the Brokers dont want to pass it on to end users?

Again thanks for your time.

VK
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  #39 (permalink)  
Old 22-09-2012, 10:44 AM
Compositedge Compositedge is offline
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Hi Veeemkay,
Each exchange sends a parameter file a number of times currently 5 times I think, a day to the broker. The broker runs this parameter file on SPAN which is what he debits as margin to his clients. We are duty bound to collect this margin. We do not add any additional margin to this. In fact we charge 50% of span+exposure for intraday. To know more about SPAN I recommend you visit Futures & Options Trading for Risk Management - CME Group and run a search for "SPAN". Span has been developed by Chicago Mercantile Exchange. You could even purchase a copy online though it is quite expensive.
Let us know if you have doubts post the site visit .... .
Regards,
CE
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  #40 (permalink)  
Old 08-10-2012, 01:16 PM
Compositedge Compositedge is offline
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Hi,
In continuation to the discussion on Span margins I am providing the link to the NSE website which mentions the manner in which Span margins are calculated.
http://www.nseindia.com/products/con...parameters.htm
It further mentions a short option minimum charge.
Regards,
CE
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