Calculating Total Margin ?

Zerodha
1

Hi,

I have a question regarding the margin. Help appreciated :pray:

I have some positions in options. Also, I have pledged some instruments for getting the margin.

How do I calculate how much margin I have? For example, the available margin & used margin is shown.

Would I get the exact margin I have if I add the available margin & used margin?

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Here for example

  2,50,410.06 +
    96,771.54
= 3,47,181.60

or

Does the Total collateral signify total available margin ?

 2,88,161.30

There is also a difference between Collateral ( Liquid Funds ) & Collateral ( Equity ). Eventhough it is said one should maintain 50:50 ratio of cash vs non cash compnent while pledging. If these are not exactly a 1:1 ratio, then would I get a reduced margin? How is the margin calculated then ?

Thank you :pray:

2

The available margin + used margin will be your total margin available.

Total collateral only includes value of margin received from securities pledged. This will not include cash balance you have in your account, this you will have to include while calculating.

The 50:50 cash collateral requirement is applicable only if you have overnight open positions.

4

So say suppose I have pledged Rs 1,50,000/- in Equity Mutual Funds & Rs 1,00,000/- in Liquid Funds & I have Rs 25,000/- in Cash. I want to place an option position overnight. What will be my margin available?

5

Your available margin will reduce after taking the position depending on the margin requirement. For example, if you are taking position in Nifty Futures and margin requirement is 1 lakhs, this much will be reduced from your available margin.

You can easily check the margin requirements using margin calculator or on the order window itself.

7

Yes, but my question is not how much margin would my position take. My question is how much total margin will be available to deploy if :

I have pledged Rs 1,50,000/- in Equity Mutual Funds & Rs 1,00,000/- in Liquid Funds & I have Rs 25,000/- in Cash. ( ignore haircuts )

8

Got it. In this case your available margin will be 275,000 (150,000 + 100,000 + 25,000).

10

Thank you, but just to clarify again,

This means that the total margin available has no bearing with the 50:50 rule,
( that trader must carry cash equivalent & non-cash equivalent margin pledge in a 1:1 ratio. )

Here I have Non-cash equivalent = 1,50,000
Cash equivalent + Cash = 1,25,000

Which is not in a 1:1 ratio.

Yet, you say that I get to use the full 275,000 margins to deploy.

Then why do we have that rule?

What if I have 250,000 Worth of Equity pledge & 25,000 cash, then also I must get 275,000 margin to deploy. :thinking: