i want to know about margen process in share market when we purchase a lot (ex.nifty-1000 what is margen required for this lot.
and how many days we keep this lot
2006-09-21 04:34:52 · 4 answers · asked by Anonymous in Business & Finance ➔ Investing
I think you mean "Margin".
When you buy a future or option contract (f&o) you're buying a liability. In other words, you might end up with a big profit when the contract expires OR you might end up with a big loss. The potential loss will change from day to day depending on a number of factors, including general market movements.
When you trade using an Exchange your position will be valued every night and the Clearing House will use a programme called SPAN to calculate your worst case loss. That will automatically generate a Margin payment which you will have to make. The money will be held by the Clearing House until the following PM when it will be adjusted based on your next payment. The balance is returned at expiry.
If you trade Over The Counter then there is usually no margin payments. However the OTC market is mostly unregulated and very dangerous for individual investors.
2006-09-21 06:05:19 · answer #1 · answered by popeleo5th 5 · 0⤊ 0⤋
In american markets you can have a margin of up to 50%. You can hold that position as long as you like. You will be charged interest only (usually very cheap) till you liquidate your position. If your position losses value (the share price goes down) you will recieve a margin call. In other words you have to put up more money to keep up your 50% margin. If you don't put up the money, your position will be closed out. The broker will take what is needed to pay off the loan amount and the rest is yours. In other words you stand to lose twice as much twice as fast on margin. You also stand to gain twice as much twice as fast. Thats the risk and reward of working on margin.
2006-09-21 12:42:59 · answer #2 · answered by john d 3 · 0⤊ 0⤋
if u r on line trader u can find on the net itself/all the sites which provides the fecility give this list.or u can log on to nseindia.com u will find over there.
2006-09-21 12:04:01 · answer #3 · answered by snyl 2 · 0⤊ 1⤋
your question is unintelligible
at the bottom of this screen, click on the India flag or other flag for the country of your choice
2006-09-21 11:40:33 · answer #4 · answered by dredude52 6 · 1⤊ 1⤋