What is contract value?

F&O
1

I received a message that the ITM options margin blocked will be 50% of the contract value.
What is contract value? How do I calculate the contract value and the margin that will be blocked?

2

Suppose you have taken position in SBI 200 CE, contract value calculation is like this (Strike Price * Lot Size), so for SBI 200 CE contract value will be 200 * 3000 = 6 lakhs.

As we are in expiry week, to hold this position you will need 50% of the contract value, that will be 3 lakhs (50% of 6 lakhs).

1 Like
3

Is this applicable for MIS position also?

4

Fresh long positions aren’t allowed in Stock Options on last two days of expiry.

5

You mean Normal and MIS, both are not allowed on the last 2 days?

6

Yes, Fresh Long positions aren’t allowed in both MIS and NRML on last two days of expiry week.