EXAMPLE FOR INITIAL MARGIN

[sunandaC]

If an individual buys one September futures contract:

Today the Sensex is 4500.Contract Multiplier is = 50 Contract size is =

4500*50*1 = Rs.2,25,000 (6% Initial margin is assumed in this example) 6%

initial margin on 2,25,000 has to be paid before the actual transaction

takes place. Thus total initial margin paid = Rs.13, 500. (6% of 2,25,000).

 

[rosemarry2]

If an individual buys one September futures contract:

Today the Sensex is 4500.Contract Multiplier is = 50 Contract size is =

4500*50*1 = Rs.2,25,000 (6% Initial margin is assumed in this example) 6%

initial margin on 2,25,000 has to be paid before the actual transaction

takes place. Thus total initial margin paid = Rs.13, 500. (6% of 2,25,000).

hello dear,

Please check attachment for Initial and Maintenance Exchange Minimum Margins, so please download and check it.