Pls clarify my doubts on below related to Commodity Futures

General
1

Hi,

Am with Z and use Pi, this query is on Commodity -> Futures

Buy NRML:

Let's say i have 25K today & i want to buy # of lots possible for 24k "CRUDEOILM16FEBFUT" , leaving 1k bal as such.

As per today's Margin "3053", i would be buying 7Lots of CRUDEOILM16FEBFUT

Case1)

i) If tomorrow's margin is hiked by MCX to 3153 say based on further USD slide/oil surge again, will it have an impact on me needing to maintain more margin coz tomorrow's margin increases by +100 

ii) If yes, how much will i have to maintain extra bucks, as in a) or  not reqd to have any as in b) 

a) is it 7 *100

or

b) it's not required as i have taken a delivery position at a lesser level already, any thing above that buy level is a profit till i square-off or happens automatically on expiry

Case 2) What happens if oil declines tomorrow, am at loss, hence there's a lesser margin requirement prescribed by MCX , say NRML 2953, a diff of -100 BUT I don't square off.

i) what happens to my position? 

a) Do Z square off automatically or initimate via SMS/phone to maintain extra margin, provide client with a duration to maintain further margins/square off. Pls explain with #s i provided to help me better understand.

b) Are we allowed to place a  LIMIT SL  set up instead of a cover order which gives an option to sell on 1.5 % decline in price , which may end up in losses most times as the range is very narrow, this SL would be triggered easily 90% of the times.

Thanks in advance for your time to read this and all the answers! Sriram

2

I did not understand Your view clearly. I am explaining as per my knowledge. If Required Margin Increased by Exchange You have to maintain as per revised Margin. If Required Margin Decreased by Exchange difference will be credited to your account as Free cash.

Assume Required Margin got increased and Price closed on your entered Price The balance left in your account which is 1000 /- will come as 300 /-. If Price Closed above your Price the Difference is credited to your account as Free cash. If Price closed below your Price you have to bring funds to your trading account to avoid " Fine ".

3

Cool. Thanks for the quick reply.
How much will be the fine, say for 700 in above case? Is it fixed or a percentage of margin crunch?.
For the same lots in MIS (INTRA DAY), what would happen as there may be huge fluctuations on a volatile day
-> i have seen on one of the posts by Nithin, that MCX may release upto 5 Margins on a day, depending on Trades for that day.
So, if there is a drastic change every 15 mins, am i going to see frequent “free cash” credits in my AC when price goes down
(or)
going to have an alert to bring in more funds when price is up just for a while every now and then -> which would be insensible as it may be cumbersome to do pay-in every half hour or so due to volatility,
Could you Pls clarify this as well.
Many thanks for your patience and help