Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

Margins - an NSE FAQ | CapitalMind

Margins - an NSE FAQ

17 Feb 2008Deepak Shenoy1 min read

Quick Facts

What is "Margins - an NSE FAQ" about?
What category is this article in?: Premium Portfolio
Who wrote this article?: Deepak Shenoy, Capitalmind's research team.
When was this article published?: Published 17 February 2008.
How long does this article take to read?: 1 min read
What topics does this article cover?: Futures

NSE has released a detailed article on margins and how they are calculated. While some elements here are mathematical you can understand how margins work in general.

The one thing you must remember is: Margins are recomputed regularly, a number of times a day. Given that, if you run out of cash to support your margins due to even one bad position, the brokers will square off your positions. You can’t just put on a trade (say an intraday position or an F&O position), check the margin required at that time and then forget about it. Margin recomputations can change a lot of things.