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Break Up of Margin Utilized for trading

fyersmargin

We have introduced a detailed limit window of the margin utilized for trading/investing across all segments and exchanges including NSE, BSE and MCX! We are the first brokerage in India to have introduced such a detailed breakup of how margins are utilized. With this update, traders can get a clear understanding of the margins utilized across all segments. This real-time understanding of margin utilized can help save precious time and energy. In total, we have provided 70 ways which use up a trader’s account balance. Moreover, it includes margin utilized for both, pending and traded orders. This is especially useful for active traders who are placing multiple orders during the day. If such traders are trading in derivatives, it helps a lot since the margin requirements for derivative contracts change on a daily basis for all scrips. You can access the margin utilized window in Fyers Web (In the dashboard) & Fyers Markets (View Limits).

How Margin Utilized Window is helpful:

1.It helps understand margin utilized across all orders and trades.
2.It helps save time without having to use the Margin Calculators.
3.It helps in allocating your capital more efficiently.
4.It helps manage risk better as it increases awareness when it matters the most.

Margin utilized across segments:

The margin utilized window is broken down into different sections for the ease of understanding. They segments are as follows:

1. Equity – This includes all equity orders & trades including margins blocked for delivery trades, intraday, cover orders, bracket orders etc.

2. Equity F&O – This section includes margins utilized for all orders and trades in the EQFNO segment and it includes intraday trades, overnight trades, cover orders & bracket orders. Each of them are shown as separate entries so that you can get a clear understanding of the margin utilized. It also shows you a break up of the consolidated SPAN & Exposure margins for this segment.

3. Currency F&O – You can see the detailed breakup of margin utilized for the CDS segment similar to the Equity F&O segment.

4. Commodity F&O – Just like Equity & currency derivatives, this section shows you the detailed breakup of margins utilized for commodity derivatives with a break up of SPAN and Exposure margins across pending and executed orders and margins blocked for CO/BO.

5. Receivables – It is the amount which is receivable after you have sold shares from your demat account in either NSE or BSE. Please note that the receivable amount can be used for trading immediately but is subject to the terms, conditions and penalties imposed by the exchanges from time to time which will have to be borne by you as and when applicable. For example, let’s say you have demat holdings worth Rs. 100,000/- and you sell it. The amount will be immediately available in your trading account. However, we suggest that you avoid using the receivable amount for overnight trades to avoid penalties. The T&C can change for intraday trades in the future too and hence, I just thought I should let you know.

6. Realised P&L – Shows you the realised profit and loss for all the segments and order types. The losses will be deducted from your trading account balance in real-time and the profits will be instantly credited. Take note that your realised profits can be utilized to trade immediately. However, we suggest you to take positions in the intraday segment with realised profits to avoid any penalties which will be imposed by the exchange for overnight trades using profits which are realised on the same day. The details of the penalties are given by relevant exchanges. Here’s some information about it from NSE’s website.This is as per SEBI’s guidelines.

7. Option Buy Value – This section shows the margin utilized by option buy trades across the equity, currency and commodity segments. Option buyers pay 100% of the value of the option upfront and this sections shows the consolidated margin utilized across option buy trades in each of the segments.

8. Option Sell Premium – It shows you the premiums received by option sellers on a consolidated basis across all segments (Equity, Currencies & Commodities). This will help traders ascertain how much option premium value is added to the trading account balance. Also, it is important to note that clients are not allowed to use option sell premiums to take fresh positions and cannot be considered as part of the trading account balance. In short, premiums received from selling options should not be used to initiate new trades.

Here’s the link which will show you the detailed entries as explained above. We hope that this detailed breakup of margin utilized will help you in trading more efficiently and in managing your risk better. It would make us really happy if it adds value to your money management in some way. Stay tuned for more updates from us on the Notice Board & our blog (Brainstorm). We are coming up with exciting stuff in the near future!


Tejas Khoday

Tejas Khoday

Tejas is the Co-Founder & CEO at FYERS, the youngest team to get NSE’s broker license. He has a specialization in finance and has over 10 years of work experience spanning across proprietary trading, risk management, and broking. Tejas & his team started FYERS, a technology-focused brokerage as a mission to transform the trading/investment landscape in India.

23 Comments

  • Avatar Harshal says:

    It’s a great update introduced by Fyers as it will help in saving time and we don’t have to use margin calculator hence the entire task become convenient. Quiet efficient in managing risk as well.

  • Avatar Sana says:

    Thanks for the detailed information. This will save a lot of time for us and will help in understanding the segmental breakup without going back to the margin calculator again and again and also in proper risk management.

  • Avatar R V Krishnan says:

    Hi Tejas, can you please do one more favor by adding a tab which shows the amount which can be paid out from my trading account. Currently it is shown in the backoffice portal, but if it is shown in the margins tab itself then it would be helpful to place a correct payout request, else it gets cancelled due to the insufficient clear balance.

  • Avatar Shashank says:

    Margin utilized window in the application is a very good update where we can have a detail break up of all the positions in intrady and carry forward as well which is very useful,Thanks for the update.

  • Avatar Anurag Singh says:

    Thank you for the valuable update, So many times without having a clear idea about the margin details, I end up with paying margin shortfall penalty.

  • Avatar Keshab Kumar says:

    Was waiting for this information from your end. Thank you so much getting things done within the stipulated time frame.
    Good day!

  • Avatar Ajay says:

    This is going to save a lot of time. For traders time is like money. You save the time you save money. Thanks for the update.

  • Avatar Rohit says:

    It’s a Very good update for monitoring Fund utilization. Can we get Volume profile indicator in fyers web?

  • Avatar Suneetha says:

    Fyers again proves that it will listen to their clients. Thank you so much for making our trading simple. Thanks for writing in the simple and easy to understand language.

  • Avatar Sachin says:

    What if there is any margin shortfall? Will it show in Negative?

  • Avatar Tushara says:

    Thanks for the update. Very useful and saves our time and focus more on our trade. Fyers always listens to us. Thank you so much.

  • Avatar Varsha Gowda says:

    Its very good update.
    Now i can check in which segment the Margin has been utilized and do the Fund transfer accordingly.

  • Avatar K.Harsha Vardhan says:

    I am new in trading, this is very useful. Thanks a lot

  • Avatar K. Prasad says:

    Very well explained in simple terms and will be very useful while trading and we know our cash limits. Thanks for writing

  • Avatar Suresh says:

    Thank you for the recent update in the platforms, one of the best things I liked is the margin utilized which will help me to check my utilized amount in the various segment one the thing I waited for long. Thank you FYERS for that.

  • Avatar Bhumit says:

    Dis is good. Now will kno if der is any wrong calculation

    • Tejas Khoday Tejas Khoday says:

      Yeah, not just that. You won’t have to keep going back to the margin calculator to ascertain how much margins are being blocked for your positions.

  • Avatar Pravin says:

    This is a lot more than what i had askd for. Need to get used to seeing so many fields. but guess more is better than less

    • Tejas Khoday Tejas Khoday says:

      yeah, it does come across like a lot at first but it will certainly be useful going forward. Stay tuned for more.

  • Avatar hitesh says:

    any update on bracket order phase 2??

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