as seen in image
Span : Rs. 1,71,331
Exposure margin : Rs. 36,651
Premium receivable : Rs. 15,195
Total margin : Rs. 2,07,982
so how much cash ( or Liquid funds) i need and how much Collateral (Equity) can i use
As the exchanges require that 50% of the margin for F&O positions must be in cash or a cash equivalent, while the remaining 50% can be in non-cash collateral.
Here, the total margin requirement is 207982. It will need 50% of this, which is around 1,03,991, as cash, and the other half can be used from the collateral.
This is the basic, the exact amount … you know it is hard to confirm… but we can go with the 50%,50% criteria.
Yep.
For intraday positions, you can use 100% collateral margin, so no cash is required.
For overnight positions, you need to maintain 50% of the margin in cash or cash equivalents, with the remaining 50% in collateral. However, if you’ve pledged scrips that qualify as cash equivalents, the 50:50 cash-collateral requirement does not apply. More here.
Thanks. Can you please explain what is difference between span margin and exposure margin. and 50% of which margin is required for overnight position
SPAN is the main margin that covers possible losses, and exposure is an extra safety buffer on top of it. We’ve an article on this: What is SPAN and exposure margin?
For overnight F&O positions, you need to maintain at least 50% of the total margin (Span plus exposure) in cash or cash equivalents. The rest can come from pledged collateral.