What is margin in Fo?
Normally, your trading account has to be funded with margins before you can initiate a trade. Margins have to be paid, irrespective of whether you buy or sell a futures contract. Margins on futures trading are meant to cover the risk of adverse price movements.
What is NSE F&O margin?
The exposure margins for options and futures contracts on index are as follows: For Index options and Index futures contracts: 3% of the notional value of a futures contract. In case of options it is charged only on short positions and is 3% of the notional value of open positions.
What is derivative margin requirement?
Initial margin requirements are based on 99% value at risk over a one day time horizon….Extreme Loss Margins.
| Product | Extreme Loss Margin |
|---|---|
| Index Derivatives | 2% of the notional value |
| Stock Derivatives | 3.5% of the notional value |
What is Fo segment in NSE?
Futures & Options (F&O) segment of NSE provides trading in derivatives instruments like Index Futures, Index Options, Stock Options, Stock Futures.
Which broker is best for intraday trading?
Best Brokerage Firm for Intraday Trading
| Broker | Brokerage (Equity Intraday) |
|---|---|
| Zerodha | Rs 20 per executed order or .03% whichever is lower |
| Upstox | Rs 20 per executed order or 0.05% whichever is lower |
| Groww | Rs 20 per executed order or 0.05% whichever is lower |
| Angel Broking | Rs 20 per executed order |
Why margin is high for option selling?
When you write options margin requirement is high due to unlimited loss involved in them. Maximum Profit is 2500 RS in your scenario. Options writing persist to maximum/unlimited risks hence they require more margin and also the settlement happens same as futures i.e daily mark to market.
Which segment is best for trading?
In my opinion FnO segment is the best as you get good margin and you can earn decent if you are having a right trade. Any segment u can choose as long as u get suited for that segment.