Display Margin Blocked Per Position


#1

Hello @nithin (and other fellow traders)

With Physical settlement becoming imminent in coming few months for ALL the F&O trades, the margin money requirement continues to take increasing importance.

Heading into the expiry week increases the margin money significantly with each passing day. While the online margin calculator is available to calculate margins, it becomes very hectic to check for each and every position that a trader holds.

It will be really useful if the margin amount blocked per trade is displayed right next to the position in the “Open Position” Page. For example, the following can be displayed:

This displayed margin amount may not necessarily be real time accurate and may be based on previous day’s margin requirements, but having it right next to all the individual positions will be really useful. It will help active traders in capital management, and to take timely actions on positions exceeding margin limits in cases of unfavorable price moves in the underlying. Also useful for changing margin requirements as we head into all stock physical delivery.

Can this be implemented please?

Other fellow traders - please feel free to add your thoughts/comments.

Thanks


#2

Yes very must feature to have. Does other brokers provide same?


#3

I believe this is not possible anytime soon due to below reasons

  1. Span and exposure are mandatory by exchange and broker has right to charge above that, on last days of expiry generally all brokers either ask to close positions or will allow to hold with little higher margins than exchange mandated margins, exchange mandates to charge for long options also on last few days prior to expiry if they are under physical settlement, in these cases it will be tough to break and show individually for long/short options and futures.
  2. Also margin blocked will be at portfolio level and not at individual level, so if one is holding futures/options both call and put or any combinations on one underlying it will be impossible to say how much is blocked for what position.
  3. One can use different product types, the way we block margins for BO/CO is different, this will add lot of complexity.

Anyhow will bounce this idea with our team on possibility of showing margins blocked across positions but only for carry forward positions ( NRML product type) with out giving any span benefit, not committing anything on this in near future.


#4

Thanks @siva, for taking this up with concerned team.

The whole purpose of this display is to know where the capital is getting blocked (i.e. - which trades are eating up maximum margins)…so if this can be atleast displayed, that will be great help.

My understanding is that portfolio level computation will be based on summation of individual positions. (of course you will know it better so pardon my ignorance, if any)

But even then, the individual position’s margin display will be useful to traders. It will help in taking necessary action (like timely square off) with informed decisions on the individual trades.

For example, say as of now I have 7 NRML positions, and if total margin requirements are approaching the account limit, there is no way for me to know which of the 7 positions is the biggest culprit. Having this display (for NRML trades) will atleast let me know which position’s square-off will release maximum margin money.

Please see if this clicks with the concerned team.