Margin Calculation Formula:
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Definition: This calculator estimates the margin required for F&O (Futures and Options) trading on the Fyers platform based on contract value and margin percentage.
Purpose: It helps traders determine how much margin they need to maintain for their F&O positions.
The calculator uses the formula:
Where:
Explanation: The contract value is multiplied by the margin percentage (divided by 100) to calculate the required margin.
Details: Proper margin calculation ensures traders maintain sufficient funds in their account to cover potential losses and meet exchange requirements.
Tips: Enter the contract value in your currency and the margin percentage required by your broker. All values must be > 0.
Q1: What is contract value in F&O trading?
A: Contract value is the total value of the position, calculated as (Lot Size × Price of the underlying asset).
Q2: How is margin percentage determined?
A: The margin percentage is set by the broker and exchange based on volatility and risk parameters.
Q3: Does margin requirement change frequently?
A: Yes, brokers may adjust margin requirements based on market volatility and other risk factors.
Q4: Is this calculator specific to Fyers?
A: While designed with Fyers in mind, the calculation method is generally applicable to most brokers.
Q5: What happens if I don't maintain sufficient margin?
A: Your broker may issue a margin call or automatically square off positions to meet margin requirements.