Futures Trading
How do you calculate additional margin required when the available margin is below the minimum margin required?
In that case, margin required on executed position is re-calculated by taking CMP of respective position and IM % and spread margin % as the case may be. Available margin as calculated above should now be compared with the required margin and amount for additional margin call is arrived at. For example say you have bought 250 shares of Futures - RELIND - 31 Aug 2023 at Rs.2500 and IM is 20% and minimum margin is 10%. You would be having a margin of Rs.125000 blocked on this position. The current market price is now say Rs.2200. This means the effective available margin Rs. 50000/- which is less than the minimum margin of Rs 62500/- and hence additional margin to be called in for. Additional margin to be calculated as follows: (a) Margin available Rs.125000 (b) Less : MTM Loss (2500-2200)*250 Rs.75000 (c) Effective available margin (a-b) Rs.50000 (d) Minimum Margin 250*2500*10% Rs.125000 (e) Re-calculated margin 250*2200*20% Rs. 110000 a. Additional margin Call (e-c) Rs. 60000.