Option Plus

What is the margin required on placement of Options Plus order?

Margin required for placement of Options Plus order is as follows: I) Fresh Buy: Margin in case of Options Plus fresh Buy order will be higher of two margins stated below or Option Premium: Maximum possible loss that you may incur considering difference between Fresh order price and cover order price plus an additional margin calculated at the Flat rate value specified, if any, for the underlying Margin computed as per Buy Multiplier% specified for the underlying under this product Formula: Fresh Buy Market order: Min (Max [{((Weighted average price of fresh order - limit price of cover SLTP order) * Quantity) + (Option PLUS flat rate Value * Quantity)}, {Buy Multiplier% * Premium value}], Premium value) Fresh Buy Limit Order: Min (Max [{((Limit price of fresh order - Limit price of cover SLTP order) * Quantity) + (Option PLUS flat rate Value * Quantity)}, {Buy Multiplier% * Premium value}], Premium Value) II) Fresh Sell: Margin in case of Options Plus fresh Sell will be higher of two margins stated below: Maximum possible loss that you may incur considering difference between Fresh order price and cover order price plus an additional margin calculated at the Flat rate value specified, if any, for the underlying Margin computed as per Sell Multiplier% specified for the underlying under this product Formula: Fresh Sell Market Order: Max [{((Limit price of cover SLTP order - Weighted average price of fresh order) * Quantity) + (Option PLUS flat rate Value * Quantity)}, {Sell Multiplier% * (ISec required margin basis exchange margin)}] Fresh Sell Limit Order: Max [{((Limit price of cover SLTP order - Limit price of fresh order) * Quantity) + (Option PLUS flat rate Value * Quantity), {Sell Multiplier% * (ISec required margin basis exchange margin)}] Margin is blocked as per the above formula on order placement and adjusted further based on the actual execution price. Example 1 - Fresh Buy Market Order: Assume you take a buy position for the fresh market order of 1000 quantity at current market price of 100/-. Simultaneously you also place the Sell (cover SLTP order) of 1000 quantity as Limit price 90/- and SLTP 95/-. Options Plus flat rate value is 100 and Buy Multiplier % is 25% Min (Max [{(100-90) *1000} + {100*1000}, {25%* 100000}], (100000) =Min (Max [{110000}, {25000}], (100000) =Min (110000, 100000) =Rs. 100000 Example 2- Fresh Buy Limit Order: In the above example if you place a fresh buy limit order at 99, Options Plus flat rate 100 and Buy Multiplier % is 25% the margin amount would be blocked as Min (Max [{(99-90) *1000} + {100*1000}, {25%* 99000}], (99000) =Min (Max [{109000}, {24750}], (99000) =Min (109000, 99000) =Rs. 99000 Example 3- Fresh Sell Limit Order: Assume you take a sell position in Nifty bank, lot size is 25 (spot rate 25803) for the fresh market order of 1000 quantity at current market price of 100/-. Simultaneously you also place the buy (cover SLTP order) of 1000 quantity as Limit price 105/- and SLTP 102/-. Options Plus flat rate value is 100, Sell Multiplier is 25% Span & exposure margin value as required by Isec basis exchange margin would be required for computation of margin basis Sell Multiplier% as per formula mentioned above. In this example SPAN per lot is considered as 116516 and exposure margin is considered as 1032120. Please note, these values may vary for different underlying contracts as required by Isec basis exchange margin. =Max[{(105-100)*1000+{100*1000},{(25%*((116516*1000)/25)+1032120)} =Max(147200,1423190) = Rs. 1423190