Margin Formula:
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Definition: This calculator estimates the margin required for Futures and Options (F&O) trading on Angel One platform based on contract value and margin percentage.
Purpose: It helps traders determine how much margin capital is needed for their F&O positions.
The calculator uses the formula:
Where:
Explanation: The contract value is multiplied by the margin percentage to calculate the required margin amount.
Details: Proper margin calculation ensures traders maintain sufficient funds in their account to cover potential losses and meet broker requirements.
Tips: Enter the contract value in your currency and margin percentage (default 15%). All values must be > 0.
Q1: Why does margin percentage vary?
A: Margin requirements change based on market volatility, security type, and broker policies.
Q2: What's a typical margin percentage for F&O?
A: Most brokers require 10-20% margin, with Angel One typically using 15% as standard.
Q3: How is contract value calculated?
A: For futures: Lot size × Price. For options: Lot size × Premium.
Q4: Does this include all margin requirements?
A: This calculates initial margin. Additional margins may apply for overnight positions.
Q5: Can margin requirements change during trading?
A: Yes, brokers may increase margins during high volatility or special situations.