Why Derivatives

1. What are Derivatives?

The term 'Derivatives' indicates it derives its value from some underlying i.e. it has no independent value. Underlying can be securities, stock market index, commodities, bullion, currency or anything else. From stock market point of view, underlying would be stock price and index value in cash market. To put is simply an example of Derivatives is curd which is derived from Milk. Derivatives are unique product, which helps in hedging the portfolio against the future risk. At the same time, derivatives are used constructively for arbitration and speculation too.

2. What are the benefits of trading in derivatives ?

Derivatives are very efficient risk management instruments and you can derive the below benefits:

i. Hedging: You can protect your cash market investment and reduce potential losses in the same.

ii. Speculation: You can speculate on the short term movement of the markets by using Futures and options.

iii. Arbitrage: You can make profit by taking advantage of pricing difference between the cash and Derivatives market.

iv. Leverage: You don't have to pay the full traded value as it allows purchasing derivatives by just paying a % value of the traded value called the margin.

3. What are Derivatives instruments offered by ICICIdirect?

There are two kinds of derivative instruments, which have been introduced in Indian capital markets:

Yes you have to additionally register for Derivatives. In case you have a Non-PINS NRO account you can submit Derivatives Application form along with verified documentary proofs for registration to start trading in Derivatives.

NOC from existing member would be required if you are already registered for trading in Derivatives with any other member. These documents are required to be submitted to NSE by ICICIdirect on your behalf to obtain your registration before you can start trading in Derivatives.

Yes. The PAN and Passport proofs need to be submitted again as a regulatory requirement for Derivatives Registration. The Derivatives application form duly filled along with the verified copies of PAN & valid Passport are required to be submitted to NSE by ICICIdirect on your behalf to get your Derivatives Registration before you can start trading in Derivatives.

No. The address in the Derivatives application form and the existing trading account (if any) has to be the same. In case your address has changed, you can fill your new address in the Derivatives application form and submit a Change of Address form (click here to download) for your 3-in-1 account.

Once you are registered for Derivatives, you can login into your account, accept the online "F&O Terms and Conditions for NRIs" and allocate funds for Futures & Options through Allocate Funds to start trading in Derivatives.

Trading in derivatives through www.icicidirect.com is allowed during the exchange specified timings. Currently, the trading hours on NSE for Derivatives are 9:15 am to 15:30 pm.

Yes. Overnight orders are allowed to be placed in derivatives segment at limit price and will be sent to the exchange on the next trading day once the market opens.

Yes, In case the market wide open position for an underlying reaches a particular percentage specified by NSE, the trading in that particular underlying is disabled by NSE. Accordingly ICICI Securities would also disable trading in that particular underlying during market hours.

ICICIdirect reserves the right to disable any particular underlying under the facility.

Yes, you can square off the open positions in the disabled underlying through square off link available on open position page.

2L and 3L order placement allow you to place more than one order in one go. You can also place a combination of Futures and options orders using 2L and 3L orders Placement. Maximum 3 orders can be placed in one attempt. All orders placed through this system are IOC orders. All orders must satisfy the risk criteria on individual basis. If any of the order fails in risk validation, none of the order will be accepted by the system.

Orders can be placed in the same underlying contract or different underlying contracts as well.2L & 3L orders can be placed from the following path under the trading section of the website: F&O > My Favourites > 2L/3L tick box. The execution of orders takes place in the same ratio in which the order was placed. It can be understood by the following example.

Contract	Minimum Lot	Order Flow	Order Qty	Available Qty
OPT-ACC-30-May-2002-150-CE	1500	Buy	3000	3000
Fut-ACC-28 Feb 2002	200	Buy	400	200

Orders in Fut-ACC-28 Feb 2002 and OPT-ACC-30-May-2002-150-CE have been placed in 3000: 400 or 15: 2 ratio. Execution will take place only if the same ratio can be maintained on execution also. In the above example, available quantities are not sufficient to maintain the ratio. Hence both the orders will be cancelled by the exchange.

If order qty for OPT-ACC-30-May-2002-150-CE is 1500 instead of 3000 and order qty for Fut-ACC-28 Feb 2002 is 200 instead of 400 , execution will take place for 1500 OPT-ACC-30-May-2002-150-CE and 200 Fut-ACC-28 Feb 2002. There will be no balance quantity for cancellation by exchange in this case.

Futures contracts are legally binding agreement to buy or sell a financial instrument sometime in future at an agreed price. Future contracts are standardized in terms of quality, quantity and delivery time. The only variable is the price, which is discovered by the market. Futures contracts have different expiry validity and will expire after the completion of the specified tenure.

As a customer of ICICIdirect, you can now trade on index and stock futures on NSE.
You can take buy/sell positions in index or stock(s) contracts expiring in different months. If, during the course of the contract life, the price moves in your favor (rises in case you have a buy position or falls in case you have a sell position), you make a profit. In case the price movement is adverse, you incur a loss.

4. Which stocks are eligible for futures trading? Why is the stock list restricted to specific scrips only?

ICICIdirect enables selected stocks for trading in the futures segment. Only those stocks, which meet the criteria on liquidity and volume are considered for futures trading. The list of underlying is subject to modification by I-Sec from time to time.

5. Which contracts under an underlying are enabled for Future trading? Why is the contract list restricted to specific contracts only under various underlyings?

ICICIdirect enables selected contracts under various underlyings for trading in the Futures segment. Only those contracts, which meet the criteria on liquidity and volume are considered for Futures trading. This is required as there may be a risk of lower liquidity in some contracts as compared to active contracts . As a result, your order may only be partially executed, or may be executed with relatively greater price difference or may not be executed at all. Thereby to safeguard your interest such illiquid contracts are disabled for trading on www.icicidirect.com. The list of contracts is subject to modification by ICICIdirect from time to time.

6. Can an enabled contract be disabled later ?

Yes, it is possible that ICICIdirect disables a contract that was enabled earlier. This could happen due to various reasons like the underlying is disabled as it reaches market wide open position limits, the contract has become illiquid or any other reason to safeguard the interest of investors.

7. Can I square off my position once the contract is disabled?

Yes, you can square off your open positions using the square off link on the Open Positions page when the contract is disabled for trading.

8. Where can I view futures contracts?

Only enabled contracts will be displayed for trading on the site when you select contracts either through the 'Place order' link or the Stock list page on www.icicidirect.com.

9. How is the futures contract defined?

ACC future contract expiring on 31st May, 2007 is defined as "FUT-ACC-31-May-2007 ". Wherein, "Fut" stands for Futures as derivatives product, "ACC" for underlying stock and "31-May-2007" for expiry date.

10. What is an "Underlying" and how is it different than "Contract"?

An index or stock enabled for trading on futures is called an "Underlying" e.g. NIFTY (index) and ACC (stock). There may be various tradable contracts for the same underlying based on its different expiration period. For example FUT-ACC-31-May-2007, FUT-ACC- 28-Jun-2007 and FUT-ACC- 26-Jul-2007 are "contracts" available for trading in futures having ACC as "underlying".

11. How do I place a futures buy/sell order?

In the "Place Order" page, you need to define the stock code and opt for "Futures" in the "Product" drop down box. On clicking on "Select the contract", the whole list of contracts available in the given stock code expiring in different months would be displayed. Depending on your interest, you can select one of the contracts by clicking on buy / sell link. It will take you to the buy / sell page. Values like, your E-Invest account no., exchange, contract details would be auto-populated. You need to define the order type i.e. Market or Limit, order validity period eg. Day, Limit Price and Stop Loss Trigger Price if any.

12. Can I short sell the shares in futures segment (i.e. sell shares which I do not hold in DP)?

Yes, you can short sell contracts in the futures segment. As currently, there is no block on your holdings in the demat account.

13. Do I have to pay the full contract value on placing orders in Futures?

To take the buy/sell position on index/stock futures, you need to have certain amount as margin to place order(s). With futures trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. However, the risk profile of your transactions goes up.

14. Is the margin requirement uniform for all stocks?

No. Margin amount required may differ from stock to stock based on the risk involved in the stock and your portfolio that exists for the stock , which depends upon the liquidity and volatility and price change of the respective stock besides the general market conditions. For e.g .if there are offsetting positions in your portfolio then you may get reduced margin benefit due to the hedging benefit available. However, it shall be at the discretion of ICICI Securities (I-Sec) to consider a particular combination of positions as hedged positions and the margin benefit may not be available on all hedged/offsetting positions. Normally index futures would attract less margin than the stock futures due to comparatively less volatile in nature. But all contracts within the same underlying would attract similar margin amount requirement.

15. How much margin would be blocked on placing the futures order? How is margin blocked?

Initially, margin amount is blocked at the time of order placement on the orders placed. Initial Margin amount is blocked for the underlying portfolio i.e. including pending order(s) and the existing open position(s), if any, under an underlying. You can check the Margin obligations on your portfolio for an underlying including pending order(s), if any, from the "Margin Calculator" link on F&O trading page. The blocked margin also includes the notional loss, if any, on the existing positions under a portfolio for an underlying. The margin is blocked from the available limits under the F&O limit page.

16. Is margin required for each order and position of an underlying contract?

A consolidated margin amount will be calculated for all Futures and Options pending orders and open positions within an underlying. Margin will not be calculated or maintained separately for each order or position of an underlying contract.

17. Who decides the margin amount and is calculated on what basis?

The margin amount is calculated by arriving at the SPAN margin using the Standardized Portfolio Analysis of Risk (SPAN) system used by the Exchanges for margin computation plus the Exposure Margin . Exposure Margin is the margin amount required by ICICI Securities on the notional value of positions to be created by the Client and on existing positions based on the prices of the relevant contract or underlying which is added to arrive at Initial Margin. Over and above the Initial Margin, I-Sec would require the notional loss on the portfolio as margin to cover the risk and also safeguard your positions from being squared off intra day due to insufficiency of margins. The exchange specified SPAN margin is based on the risk parameter file that is issued by the exchange from time to time during a trading day and considers a base price and other volatility and price change arrays for margin computation. The exposure margin for futures positions is calculated on the order/trade price for the contract position at the time of order/trade execution and current market price on open positions at the time of running intra day mark to market process. The exposure margin for short options is calculated on the underlying spot prices existing at the time of order/trade execution and the Current spot price existing for open positions at the time of running intra day mark to market process.

18. Can required margin amount on positions be different after order execution as compared to margin requirement at the time of order placement on the same positions?

Yes, there could be scenarios wherein margin charged at position/trade level can substantially increase as compared to the margin charged at order level. If you do not maintain sufficient margins required to meet the new Initial Margin requirement post trade execution then ICICI Securities may square off such positions while running Intraday Mark to Market (IMTM) process at its sole discretion without consulting or intimating the Client and the Client shall be solely responsible for any losses arising on account of the same.

19. Can margin be changed during the life of contract?

Yes, margin amount can be changed during the life of the contract depending on the volatility in the market, the risk parameter file issued by exchanges and current market price of the contract(s)/underlying. It may so happen that you have taken your position and Rs.

25000 margin is blocked for the same. But later on, due to the increased volatility in the prices, the margin is increased to Rs.

30000. In that scenario, you will have to add margin or allocate additional funds to continue with your open position(s). Otherwise it may come in the MTM loop and get squared off because of insufficient margin. It is advisable to keep higher allocation or do add margin to safeguard the open position from such events.

20. Is margin calculated and displayed for each contract ?

No. Margins are calculated taking the entire orders/positions i.e. all Futures and Options pending order(s) and open position(s) under a specific underlying portfolio and not for each contract. Hence, one consolidated margin amount would be displayed against each underlying portfolio on your open positions page under the F&O trading section of www.icicidirect.com

21. Is margin blocked on all future orders?

No. Margin is blocked only on future orders, which results into increased risk exposure. In case the client has placed orders in a Near month contract and the middle month contract of the same underlying, for calculating the margin at order level, you can use the Margin Calculator link by specifying the existing positions (including Futures and Options open positions, if any) and order which you intend to place for a particular underlying. You will need to add open positions notional loss , if any, to arrive at the total margin requirement.

22. What is initial margin (IM) on order(s) or open position?

Initial Margin means the amount of margin (either in the form of cash or eligible securities) required by ICICI Securities to be deposited with it by you before undertaking Transactions in Futures and Options for an underlying portfolio and also on a continuing basis thereafter on open positions which shall include SPAN Margin plus Exposure Margin plus notional loss on positions and such other additional margin as may be specified by ICICI Securities from time to time. Initial margin amount is required to be allocated under F&O limits . The initial margin required at position(s) (post order execution) level may be different than the margin amount applicable for orders . Position level margin amount can be arrived at by using the Margin calculator link under F&O trading page by entering your positions or expected positions.

23. When is initial margin computed for my order(s) or position(s)?

As mentioned above, Initial margin is first computed on order placement for an underlying portfolio including the order and then re-computed for all positions and pending orders within an underlying portfolio at any event for any order of that underlying portfolio like on modification, cancellation, execution, cover order execution against open position. In addition to these events, margin would also get recomputed during running intraday MTM process and EOD MTM Process, details of which are mentioned separately in FAQs.

24. What is meant by calendar spread?

Calendar spread means risk off-setting positions in contracts expiring on different dates in the same underlying. For example, you take buy position for 200 shares in Fut - ACC- 31 May 2007 @ Rs.

150 and sell position for 100 shares in Fut - ACC- 28 Jun 2007 @ Rs.

160. 100 buy position in Fut - ACC- 31 May 2007 and 100 sell position in Fut - ACC- 28 Jun 2007 forms a spread against each other and hence called spread position. In this example, the balance 100 shares buy position in Fut - ACC- 31 May 2007 would be non-spread position.

25. Which open positions will be included to calculate notional loss required to be added to the blocked margin amount as at the time of order placement or modification or cancellation or execution?

All your buy and sell futures open positions and short option positions will be included to calculate the notional loss required to be added to the blocked margin amount for an underlying portfolio.

26. Will reduced margin benefit be available to my calendar spread positions ? Till when the reduced margin benefit on my spread positions be available?

Yes. There will be reduced margin benefit available on your spread positions. As per exchange, spread benefit is made available till the last date of expiry. Similarly, I-Sec will extend the spread benefit till the last date of expiry.

27. What will happen to my calendar spread positions after expiry? Will the margin benefit be removed?

If you have a calendar spread position with one leg of position in the near month then that near month position leg, if not squared off by you on the last trading day of expiry will get closed out at the end of day by exchange. Due to this, the other leg of your spread position will become naked and there will be no reduced margin benefit available. Thereby, increased margins would be required on your open position at the end of day at expiry. You would be required to keep sufficient margins for your open position(s) at the end of day to comply with exchange margin requirement and if the required margin is not made available then your position may get squared off on the next day due to insufficient margin at the discretion of I-Sec. Thereby, you are advised to either square off both the positions forming spread on the last day of expiry or square off the expiry month position and create the spread with a different expiry month contract of that underlying to continue the benefit of reduced margins on your spread positions even after expiry.

28. Whether any penalty would be levied by ICICI Securities due to short reporting of margin on positions?

Penalties are levied by Exchanges on stock brokers for short reporting of margin collected from clients. As per NSE circular no. NSE/INSP/19583 dated December 14, 2011, if clients fail to provide required margin amount on positions then the penalty amount levied by Exchanges can be recovered from clients by stock brokers. Accordingly, if you fail to allocate sufficient funds or margin pledge securities towards your margin obligations on positions, the penalty amount may be recovered from you by debiting your linked bank account or invoking selling shares which are margin pledged and lying in your linked demat account.

29. Is there any hedging benefit between Futures and Options? Will I get reduced margin benefit on my hedged Futures and Options positions which offset one another?

Yes. You will get reduced margin benefit on your offsetting Futures and Options positions and positions within Options which form a hedge depending on the type of positions created by you. However, it shall be at the discretion of ICICI Securities to consider a particular combination of positions as hedged positions and the margin benefit may not be available on all hedged/offsetting positions. You will need to maintain and provide the mark to market loss amount at the end of day for your open Futures position even if they form a hedge as this would be required to be paid to exchange which is applicable for Futures open positions irrespective of the profits on the other hedged leg of options. This would mean that only reduced margin benefit is made available on your hedged positions.

For Eg. You have two positions in RELIND namely; Long RELIND Futures 29-Mar-2012 and Long RELIND Put 840 dated 29-Mar-2012 this would be considered hedged by ICICI Securities and the reduced margin on combined position would be Rs.

9000/- whereas if you had Long RELIND Futures 29-Mar-2012 and Long RELIND Call 840 29-Mar-2012 this would be considered as non hedged and margin on individual Long RELIND Futures 29-Mar-2012 would be Rs.

25000/- and premium would be required on placing Long RELIND Call 840 29-Mar-2012.

30. Is margin benefit on hedged positions available across underlyings or between stock and index positions?

No. I-Sec allows margin benefit on hedged positions only within the same underlying and no benefit is provided across underlyings or between one stock and other index positions.

31. Will I get margin benefit on hedged positions taken in different month contracts?

Yes. You will get margin benefit on hedged positions in different month contracts. For eg. You can take hedged position of Long NIFTY Put 29-Mar-2012 and Long NIFTY Future 26-Apr-2012.

32. What will happen to my hedged positions after expiry ? Will the margin benefit be removed?

If you have a hedged position with one leg position in the near month and the other leg position in a different month then the near month position if not squared off by you on the last trading day of expiry will get closed out at the end of day by exchange. Due to this, the other leg in different expiry month of your hedged open position will become naked and there will be no margin benefit available as the hedge benefit would be removed at the end of day. Thereby, increased margins would be required on your open positions at the end of day at expiry. You would be required to keep sufficient margins for your open position(s) at the end of day to comply with exchange margin requirement and if the required margin is not made available then your position may get squared off on the next day due to insufficient margin. Thereby, you are advised to either square off both the positions forming hedge on the last day of expiry if one leg is expiring or else square off the expiring month position and immediately create the hedge with a different expiry month contract of that underlying to continue the benefit of reduced margins on your hedged positions even after expiry.

33. What is meant by 'squaring off' a position? What is a cover order?

Squaring off a position means closing out a futures position. For example, if you have futures buy position of 500 Reliance expiring on 31st May 2007, squaring off this position would mean taking sell position in 500 Reliance expiring on 31st May 2007 on or prior to 31st May 2007. The order placed for squaring off an open position is called a cover order.

34. How do I place a square off order to cover my open positions?

You can place the square off order either through the normal buy/sell page or through a hyper link "Square off" on the "Open Position" page.

35. Can an underlying be disabled from trading during the day?

Yes, In case the market wide open position for an underlying reaches a particular percentage specified by NSE, the trading in that particular underlying is disabled by NSE. Accordingly ICICI Securities would also disable the trading in that particular underlying during market hours.

ICICIdirect may, at its sole discretion, disable any particular underlying during the day from further trading under the facility.

36. Can I square off the open positions in the disabled underlying?

Yes, you can square off the open positions in the disabled underlying through square off link available on open position page.

37. I have placed the square off order. Can I modify that order?

Yes. You can modify square off order if not executed.

38. How is the profit or loss recognized on execution of square off (cover) orders?

Execution price of cover order is compared against the weighted average price at which the position was built up / previous trading day EOD MTM price (as shown in the "Open Positions" page under Average price column) and profit/loss is calculated there from.

For example, say you have a futures position - 'Buy 200 ACC Shares' in contract Futures - ACC- 31 May 2007 at an average price of Rs.

300 per share created through the execution of two orders - 'Buy 100 @ Rs.

310 per share' and 'Buy 100 @ Rs.

290 per share'. If you square off a part of the position by selling 50 ACC Shares @ Rs.

305 per share, the profit on such square off would be calculated as:

Quantity squared off * (Square off trade price - Weighted Average price of the position)
50 * (305 - 300) = 250

39. When do you release the margins blocked on Future positions?

The margin is released after the Future positions are squared off or there is reduced margin requirement on the underlying portfolio. The margin released is net off Margin blocked on Positions +/- Profit/Loss incurred on Square off and applicable taxes.

40. Is there any impact on the limit on execution of a buy/sell order?

If it is an execution of a fresh order (i.e. an order which would result into building up an open position), and if the margin blocked earlier at the time of order placement was less than the new margin requirement computed after order execution then limits would be adjusted appropriately for the difference, if any. Accordingly, the limits are adjusted for differential margin on all the open positions in that underlying portfolio. Also the additional notional loss, if any, would be blocked and adjusted accordingly from the limits on all the open positions in that underlying after execution of order.

If it is an execution of a cover order (order which would result into square off of an existing open position), then the effect of profit & loss on the square off of such a transaction would be factored into the limits.

If an execution of an order resulting into building up spread or hedged position, impact on limits would be in terms of release of differential margin depending on the margin required on the entire portfolio for that underlying. If an execution of an order resulting into squaring off of one leg of hedged positions , impact on limits would be in terms of blocking of additional margin on rest of the open positons in that underlying. If sufficient margin is not available to meet the margin requirements on rest of the open positions, then such open positions may be squared off by ICICI Securities due to margin shortfall.

41. How do I see my open positions? What all position details would be made available?

You can view all open Futures and Options positions by clicking on "Open Positions" link under F&O trading section. The open positions page gives details such as contract details, buy/sell position, open position qty, pending buy & sell order qty, average price, last traded price (LTP), total margin blocked on the open position and pending orders, minimum margin required, available margin at underlying portfolio group level. Further, under actions column you will have the links namely; square off, My MTM and Add Margin.

42. What is average price displayed on the open positions page?

The average price displayed on options page would display price information for Futures and Options open positions. The average price displayed would be as follows:

43. What is Intra -Day Mark to Market? How does ICICIdirect call for additional margin during the Intra-day MTM process?

Once the available margin falls below the minimum margin, ICICIdirect may at its discretion at a suitable time run the Intra-day Mark to Market process. Through this process the system would block additional margin required out of the limits available, if any. In case there are no limits available the Intra-day Mark to Market process would square off the positions if the available margin falls below the minimum margin.

44. What is meant by Minimum Margin?

Minimum Margin is the margin amount, you should have available with ICICIdirect all the time. Once the available margin with us goes below the minimum required minimum margin, our system would block additional margin required from the limit available.

45. How do you calculate available margin?

Available margin is calculated by adding or deducting notional profit or loss respectively on the open positions forming part of an underlying from the margin blocked at underlying portfolio level.i.e. Available Margin will be computed for each underlying separately.

46. Which positions are considered for calculating the notional profit or loss within an underlying portfolio to arrive at available margin?

Your notional profit and loss on long & short Futures and Short options contract positions within an underlying would be considered for computing the available margin at an underlying portfolio level.

47. How is notional profit or loss on Futures and short Options calculated to arrive at available margin ?

For your Futures Long & Short positions the profit/loss is computed considering the weighted average trade price or base price for positions traded during the day or carried forward positions respectively compared with the Current market price. Whereas, for your Short Option positions the profit/loss is computed considering the Previous days close price compared with the current market price of the contract position.

48. Where can I see my Available Margin on site?

Your Available Margin will be displayed on your Open Positions Page at each underlying portfolio level under the F&O section.

49. What is My MTM link given on Open Positions page?

My MTM is an additional facility provided to you in the form of a link against each underlying portfolio under the actions column of your open positions page to check whether your position is likely to get squared off during the intra day MTM process run which is run by I-Sec risk management team. This link will facilitate you to mark up your margin on open positions to revised initial margin requirement including notional losses, if any, for your underlying portfolio if the additional margin amount required is available under your limits. If limits are insufficient then your positions in a particular underlying portfolio for which you have clicked My MTM will be marked for square off and highlighted with red background colour indicating that your positions under that particular underlying may get squared off when intra day MTM square off process is run by I-Sec.

50. What happens to my open positions on clicking this My MTM link?

On clicking the My MTM link for an underlying portfolio on the the open positions page you will be required to enter your password and submit. On submitting you will get a message that your positions have been marked to market successfully. This would mean as follows:

51. How do you calculate additional margin required when the available margin is below the minimum margin required?

In that case, margin required on the underlying portfolio is re-calculated by taking latest SPAN margin and exposure margin at contract CMP/underlying spot price of futures /options contract positions respectively. Available margin as calculated above should now be compared with the revised required margin and amount for additional margin call is arrived at.

For example, say you have bought 100 shares of Futures - ACC - 27 Feb 2002 at Rs.

150 and margin blocked is Rs.

3000 and the minimum margin required is Rs.

1500/-. The current market price is now say Rs.

130. This means the effective available margin Rs.

1000/- which is less than the minimum margin of Rs.

1500/- and hence additional margin to be called in for. Revised initial margin calculated is say Rs.

2600/-. Then Additional margin to be calculated as follows:

(a) Margin blocked Rs.

3000

(b) Less : MTM Loss
(150-130)*100 Rs.

2000

(c) Effective available margin Rs.

1000
(a-b)

(d) Minimum Margin required Rs.

1500

(e) Re-calculated revised initial margin Rs.

2600
Additional margin Call (e-c) " Rs.

1600"

52. How do you call for additional margin during the Intra-day MTM process?

Once the available margin falls below the minimum margin required, our system would block additional margin required out of the limits available, if any.

53. What happens if limits are not sufficient to meet the additional margin requirements?

Our risk monitoring system/team may, at its discretion, place a square off order at market rate to close the open position. However, before placing the square off order all pending futures and options orders in that underlying-portfolio group (contracts having same underlying and recognized in the same group for portfolio) are cancelled by our risk monitoring system/team. Following are the sequence of actions taken by our risk monitoring system/team.

54. What happens if the limit is insufficient to meet a margin call but there are unallocated clear funds available in the bank account?

While making an online check for available additional margin, our system would restrict itself only to the extent of trading limit and would not absorb any amount out of un-allocated funds so as to keep your normal banking operations undisturbed. It is, therefore, advisable to have adequate surplus funds allocated for trading when you have open positions.

However, ICICIdirect reserves the right to block and/or debit even unallocated clear funds available in the bank account.

55. Can I do anything to safeguard the positions from being squared off during Intra-day MTM process?

Yes, you can always allocate additional margin, suo moto, on any underlying portolio having open positions. Since the close-out process is triggered when minimum margin required is more than available margin, having adequate margins can avoid calls for any additional margin in case the market turns unfavorably volatile with respect to your positions under an underlying portfolio. You can add margin to your particular underlying portfolio by clicking on "Add Margin" link available for a specific underlying group total on the "Open Positions" page by specifying the margin amount to be allocated further. However, you should keep in mind that whatever margin you add during the day will remain there only till the end of day mark to Market (EOD MTM) is run or upto the time you square off your position in that underlying and group completely. Next day if you want some more margin to be added towards the same open position, you will have to do 'Add Margin' again.

Please note there is also an additional tracking tool provided to track your positions on the basis of Trigger Price and LTP. For more details you can refer below FAQs.

56. What is the Trigger price displayed on Open Position page for Futures product?

Trigger price is just an additional tracking tool provided to track your positions to ascertain at what price level the position may get squared off on the basis of Trigger Price and LTP. However, you can continue to track your positions for intraday mark to market process on the basis of Available Margin and Minimum Margin accordingly you can allocate additional funds if Available Margin amount is displayed in red colour.
Trigger price is a price which indicates that your position is likely to come under the mark to market process and may get squared off if LTP breaches the indicated trigger price.

57. Will Trigger Price be calculated immediately on order placement?

No, trigger price will not be calculated immediately on order placement. Trigger Price gets calculated only once your Futures Buy or Sell order results into an executed trade and becomes an open position.

58. Will Trigger Price be calculated for NON SPAN as well as SPAN based margining?

Trigger Price will be calculated only for NON SPAN based margining in Futures product

59. How is the Trigger Price calculated for Futures positions ?

a. Trigger Price is calculated as follows in case of Buy positions:

Example: If you have Futures Buy position of 500 qty of Reliance at Rs 900 expiring on 26th December 2015 at IM of 11% and MM of 8%.
Trigger Price calculation for Future Buy Positions: WAP on Underlying level-(( Margin on Positions - ( WAP on underlying level * Open Pos Qty * Min margin percentage)/ Open Position Quantity).
900-{(49500-(900*500*8/100)))/500} = 873

b. Trigger Price is calculated as follows in case of Sell positions:

Example: If you have Futures Sell position of 1600 qty of ITC Limited at Rs 355 expiring on 26th December 2015 at IM of 14% and MM of 10%.
Trigger Price calculation for Futures Sell Positions: WAP on Underlying level+(( Margin on Positions - ( WAP on Underlying Level * Open Pos Qty * Min Margin Percentage ))/ Open Position Quantity).
355+{(79520-(355*1600*10/100))/1600) = 369.20

Please note Trigger Price will be rounded up to the tick size for Buy positions and rounded down to the Tick size for sell positions.

60. Will Trigger Price be recalculated on converting Future PLUS positions to Future?

Yes. Trigger Price will be recalculated on converting Future PLUS position to Future for NON SPAN based margining.

61. Whether Trigger Price would be displayed in case of perfect spread Futures positions ?

No. In case of perfect spread i.e. where the buy and sell quantity is the same in different contracts of the same underlying forming a spread , Trigger Price will not be applicable.

62. How is Trigger Price calculated for imperfect Spread Positions?

Imperfect spread positions means where Buy and Sell quantity is not the same in different contracts of the same underlying.

Trigger price for Spread positions is calculated in three steps:

Example: If you take buy position for 500 qty in Fut - REILND- 26 Nov 2015 @ 925 and sell position for 1500 qty in Fut - RELIND- 31 Dec 2015 @956.40, 500 buy position in Fut - RELIND- 26 Nov 215 and 500 sell position in Fut - RELIND- 31 Dec 2015 forms a spread against each other and hence called spread position. In this example, the balance 1000 shares Sell position in Fut - RELIND- 26 Nov 2015 would be non-spread position and would attract initial margin. IM and MM for RELIND is 16.19 % and 13.69 % respectively and Spread IM and MM is 6% and 3% respectively.

Step 1: Trigger Price for Futures Naked Buy/Sell position

Trigger Price for Futures Naked Buy/Sell position: WAP on Contract level where naked position exists -/+ [(Executed Margin Blocked on naked leg - (WAP on Contract level * Contract level Naked Open Position Qty * Minimum Margin Percentage)) / Naked Position Qty] where Executed Margin Blocked on Naked qty is calculated as WAP of Contract where Naked Position Exists*Naked Position Qty*IM %

= 956.40+(154841-1000*956.40*13.69%)/1000 = 980.31

Step 2: Trigger Price for Futures Spread Buy/Sell position :

Trigger Price for Futures Spread Buy/Sell position : WAP on Contract level where naked position exists -/+ [(Executed Margin Blocked on spread - (WAP of Far month contract * Contract level spread Position Qty * Minimum spread margin percentage)) / Spread Position Qty] where Executed Margin Blocked on spread qty is calculated as WAP of Far Month Contract*Spread position Qty*Spread IM %

= 956.40+(28692-956.40*500*3%)/500 = 985.09

Step 3: WAP of Both Trigger Price

WAP of Both Trigger Price: ((Trigger Price for Naked Position*Naked Position Qty)+(Trigger Price for Spread Position*Spread Position Qty))/ Naked Position Qty+Spread Position Qty.

= ((980.31*1000)+(985.09*500))/1500 = 981.90

In the above case Trigger would be displayed as 981.90 on Future Open position page.

Please note Trigger Price will be rounded up to the tick size for Buy positions and rounded down to the Tick size for sell positions.

63. How Trigger Price is calculated for positions in same direction in near and mid month contracts where spread is allowed?

Trigger Price with positions in same direction in near and mid month contracts where spread is allowed is calculated as follows:

Example: If you take Buy position for 75 qty in Fut- NIFTY-26 Nov 2015 @ 8500 and Buy position for 150 qty in Fut- NIFTY-26 Dec 2015 @ 8525. IM% and MM% for NIFTY is 8% and 6% respectively.

Trigger Price for Futures Current Month Buy/Sell Position:

WAP on Contract Level -/+[( Executed Margin at Contract Level - (WAP on Contract Level*Contract Level Open Position Qty*Minimum Margin Percentage))/Contract Level Open Position Qty where Executed Margin at Contract Level will be calculated as (contract Level open position qty / total underlying open position qty) * Margin on Positions at Underlying Level.

=8500-(51100-(8500*75*6%))/75 = 8328.67

Trigger Price for Futures Mid Month Buy/Sell Position:

WAP on Contract Level -/+[( Executed Margin at Contract Level - (WAP on Contrarct Level*Contract Level Open Position Qty*Minimum Margin Percentage))/Contract Level Open Position Qty where Executed Margin at Contract Level will be calculated as (contract Level open position qty / total underlying open position qty) * Margin on Positions at Underlying Level.

=8525-(102200-(8525*150*6%))/150 = 8355.17

Please note Trigger Price will be rounded up to the tick size for Buy positions and rounded down to the Tick size for sell positions.

64. Can a Trigger Price displayed earlier change at a later time?

Yes. Trigger price may change if there is any change in existing position quantity or change in Margin value on existing Positions. Some of the events where Trigger Price may change are like increase in open position quantity in same contract, partial square off of existing position quantity, Add Margin, EOD MTM.

65. In case of profit on a future position or where the Available Margin is in excess of the Margin Required, can I reduce the margin against the position to increase my limit?

No, you will not be able to release any margin but any release of margin in excess of required margin (in profitable position or due to reduction in margins, if any) is possible only when there is any change in the underlying portfolio which calls for re-computation of margins else such release will happen only when ICICIdirect runs its EOD MTM process or you square off your open position completely.

66. What is meant by EOD MTM (End of Day - Mark To Market) process?

EOD MTM on daily basis is a mandatory requirement in case of futures. Every day the settlement of open futures position will take place at the closing price of the day. The average price column on Open position page for Futures displays the current days weighted average trade price for positions taken during the day or previous days closing price for carried forward positions. This average price is considered as base price and is compared with the closing price for the day and the difference (i.e. MTM Profit or loss) is cash settled. In case of profit in EOD MTM, limits are increased by the profit amount and in case of loss, limits are reduced to that extent. Next day the position would be carried forward at the previous trading day closing price at which last EOD MTM was run. Closing price for all the contracts are provided by exchange . It is different than LTP.

67. What would be the effect of EOD MTM on margin blocked at underlying portfolio level?

Yes, EOD MTM does have its impact on margin at underlying portfolio level. Margin is re-calculated at EOD MTM and differential margin is blocked or released as the case may be. To provide sufficient margin on underlying portfolio for open positions after EOD MTM, you must ensure that sufficient allocation is available under F&O segment. You must visit the allocation amount for F&O on daily basis and allocate further if present allocation is found insufficient.

Due to daily MTM and payin/payout, allocation amount for F&O may come down over a period of time and because of the same, open position may fall in MTM loop and may get squared off unless you allocate fresh amount for F&O. Payin amount is debited from allocation you make for F&O but payout credit is given in your linked bank a/c but allocated under Blocked for Trade (BFT) section of your F&O limits . However, ICICI Securities reserves the right to debit the payin amount from even unallocated clear funds available in the bank account if funds allocated in F&O is insufficient.

68. Is it compulsory to square off the position within the life of contract?

No. You may not square off the position till the contract expires. In that case, ICICIdirect as well as Exchange would expire your position on the last day on contract after running EOD MTM and your position would be closed at the closing price of the spot (equity) market. Margin on underlying portfolio would be recalculated and blocked/released depending on the remianing underlying portfolio and your trading limits will be accordingly adjusted after adjusting profit/loss, applicable brokerage, taxes and statutory levies on close out.

69. When do orders in Futures get freezed?

Orders in Futures may get freezed at the exchange end. There are two types of Freeze orders specified by exchange:

70. Where can I see that my order is freezed?

The orders in F&O that get freezed appear with a blank status in the order book and the details of freeze can be seen in the order log by clicking on the order reference hyperlink.

71. What should I do in case an order is Freezed?

If your order gets freezed, you can call up the call centre number and provide the required details about the order. ICICI Securities will inform the exchange about the details of your freezed order. Exchange may at its discretion release or reject the request for releasing Freezed orders. Till the order is unfrozen, the limits are blocked to the extent of order which got frozen.

72. What is Square Off all positions at Market?

Square Off all positions at Market feature will facilitate you to square off all open positions across all underlyings of a product at market with a few clicks. This link is available on open positions page for Future, FuturePLUS and Option products. There shall not be any pending order(s) in any of the contract of a product for using this feature. This feature cannot be used for selected positions and therefore you are advised to keep in mind the liquidity and impact cost in the open position contracts while using this feature. There can be huge differences between bid and offer prices in certain contracts due to less liquidity and squaring off those positions at market may fetch you unfavorable execution price.

Under Price Improvement order for Futures, customer now will be able to place Futures Order with Price Improvement condition, where the Stop Loss and Limit price will change automatically w.r.t Market Price. Thereby, allowing customer with the facility of auto-updating the Stop Loss and Limit Price based on the Stop Loss update condition defined by I-Sec.

Stop Loss update condition for stocks can be seen from the 'Stock Lists' page.

You can place Price Improvement order any time in the normal session during market hours. Please note you cannot place orders in this product before or after market hours.

Only selected contracts have been enabled for trading under Price Improvement Order in Future. Only those contracts, which meet the criteria on liquidity and volume, have been enabled for trading under this product. I-Sec reserves the right to select the contracts for Price Improvement Order product and may, at its sole discretion, include or exclude any contract for trading in this product without any prior intimation.

Please visit stock list page under F&O transact where you can see the Price Improvement allowed flag will be Y for all enabled stocks and 'N' for disabled. You can also view the Minimum Trailing amount and SLTP Update Condition columns for enabled stocks.

You can place Price Improvement order by visiting the new 'Advanced Order' link under the F&O Transact section. You can also place Price Improvement order from Future buy/sell order placement page, where 'Place Futures Price Improvement Order' link is available.

Yes, you can place Price Improvement order at any time during market hours and even post market hours when the site is open for placing overnight orders.

. What will happen to my Overnight Price Improvement Order if next day's opening price is below or above SLTP Price?

If your Order (Buy/Sell) satisfies the SLTP Criteria then it will get triggered otherwise it will get trailed as per SLTP update condition. Consider the below scenarios:

a) Buy Overnight Price Improvement Order:

LTP at Overnight Order placement: 100

SLTP entered by Customer: 102

Limit Price: 104

Case 1: Now on next day if market opens at or above 102 i.e. SLTP price of your Price Improvement order then your order will get triggered immediately and execution will happen upto the Limit Price. This will help protect your losses on open positions in case of unfavorable market open on the next day. It will also help take positions at a better price for your new positions if the market starts trending in a specific direction.

Case 2: If on next day market opens below 102 i.e. SLTP price of your Price Improvement order then your order will get trailed at the next trail price as per the SLTP update condition defined by I-Sec for that underlying which is available on the Stock List page of our website.

b) Sell overnight Price Improvement Order:

LTP at Overnight Order placement: 100

SLTP entered by Customer: 98

Limit Price: 96

Case 1:

Now on next day if market opens at or below 98 i.e. SLTP price of your Price Improvement order then your order will get triggered immediately and execution will happen upto the Limit Price. This will help protect your losses on open positions in case of unfavorable market open on the next day. It will also help take positions at a better price for your new positions if the market starts trending in a specific direction.

Case 2: : If on next day market opens above 98 i.e. SLTP price of your Price Improvement order then your order will get trailed at the next trail price as per the SLTP update condition defined by I-Sec for that underlying which is available on the Stock List page of our website

You can convert your Price Improvement Order to Normal future Order using Modify link in the Order book. You can untick Price Improvement Order checkbox on the Order modification page to convert a Price Improvement order to normal Futures order. Further, if you choose to modify the order validity to IOC or Order type to Market while modifying existing Price Improvement order it will get modified to Normal Futures order. Please note once your Price Improvement order gets triggered the order becomes a normal futures order and the pending unexecuted order quantity automatically gets modified and resides as a normal Futures order in the order book.

. Can I Convert/Modify normal Future order to Price Improvement order? If yes, then how can I do so?

Yes you can convert Normal future Order to Price Improvement order using 'Convert to Price Improvement Order' link which is available in Order book against unexecuted pending Futures order. Once you convert your order it will be displayed with Y flag under the Price Improvement Order column of the order book.

You can differentiate Orders in Order Book through Price Improvement Order column , If it is 'Y' then it's a Price Improvement Order and If it is 'N' then it is Normal future Order.

. When does my Price Improvement Order become a normal Futures order i.e. Y flag becomes N in the order book under the Price Improvement Order column?

Please note that your Price Improvement Order automatically gets converted to normal Futures order in the below events:

1. If the Stop Loss is triggered for your Price improvement order and it remains pending then the pending order quantity is under N i.e. Normal Futures product. In this case you can modify your pending unexecuted order to Price Improvement Order if the underlying/contract is enabled.

2. If the Underlying/Contract gets disabled under Futures or for Price improvement order after you had placed your Price Improvement Order then it becomes N i.e. Normal Futures order after it falls under the modification process based on the next trail price. In this case the order would not be modified further and if you wish to you may cancel your order else it is likely to get executed if the last price reaches at exchange end and this order gets a match for execution.

You can visit online Order book and click the order reference number to view the order log where details like LTP, Trailing Amount entered ( difference between LTP and Stop Loss Trigger Price), initial Limit Price and initial SLTP at which the SLTP modification occurred shall be displayed.

. What is Stop Loss Update condition? Where can I see the SLTP update condition?

It is the price interval on the basis of which value of 'LTP at next SLTP update' is calculated. Once the LTP of the stock reaches or breaches this value then the Price Improvement order will trail with the updated SLTP and Limit price. You can visit the Stock List page and view the SLTP Update condition against the stocks which are enabled for Price Improvement Order.

For example, say LTP of NIFTY is 8000 and SLTP Update condition is 5.

For a sell order, this implies that if LTP moves to 8005 or above only then order will trail automatically by modifying the SLTP and Limit Price and if the LTP remains below 8005 then SLTP will remain unchanged.

For a Buy order, this implies that if the LTP moves to 7995 or below only then order will trail automatically by modifying the SLTP and Limit Price and if the LTP remains above 7995 then SLTP will remain unchanged.

You can modify order quantity, order validity, order type, SLTP, Limit Price and Trailing Amount.

. Can I place any order validity or any order type while placing Futures Price Improvement orders?

No. Futures Price Improvement orders are mandatorily limit orders with Stop Loss Trigger Price and with day validity. Hence IOC validity and or Market order type are not allowed while placing Price Improvement orders.

An order can be modified to a maximum of 96 times. Price Improvement order will not trail after effecting 96 number of modifications.

. What is Trailing amount? Is there any minimum trailing amount which must be maintained for Price Improvement order?

Trailing amount is the absolute price difference between LTP and SLTP for a Price Improvement order. You cannot keep this difference less than the minimum trailing amount defined for a stock.

Minimum trailing amount for a stock can be seen from the 'Stock list' page.

You can refer to the below example to have a better understanding of the Price Improvement order:

Assume, LTP of NIFTY is 8000 and SLTP Update condition is 10.

1) For a Sell Price Improvement order you enter SLTP as 7995 and Limit Price as 7990. Now if LTP moves to 8010 then order will trail with SLTP as 8005 and limit price as 8000. If LTP moves down to 8005 then order will get triggered and gets converted into a normal Futures order i.e. will not be trailed after it gets triggered. However, if the order remains pending i.e. unexecuted then you can again convert this Futures order to Price Improvement Orderusing 'Convert to Price Improvement Order' link against the pending order on the Order book.

2) For a Buy Price Improvement order you enter SLTP as 8005 and Limit Price as 8010. Now if LTP moves to 7990 then order will trail with SLTP as 7995 and limit price as 8000. If LTP moves up to 7995 then order will get triggered and gets converted into a normal Futures order i.e. order will not be trailed after it gets triggered. However, if the order remains pending i.e. unexecuted then you can again convert this Futures order to Price Improvement Order using 'Convert to Price Improvement Order' link against the pending order on the Order book.

. What will happen to my pending Price Improvement order if the SLTP Update condition is changed during the day?

If the SLTP update condition is changed during the day then the next trail (not immediate trail) of your pending Price Improvement order will happen according to the changed SLTP update condition.

. What will happen if my Price Improvement order gets triggered and remains pending?

Your Price Improvement Order will become a normal Future order as soon as it gets triggered. This means it will no longer have the Price Improvement feature and will not trail. However, if you want to trail the order for remaining quantity, you can convert the partly executed order in to Price Improvement order using 'Convert to Price Improvement Order' link against the pending order on the Order book.

. Will my part executed Price Improvement order trail for the remaining open quantity?

As explained above once your order gets triggered it will become a normal Future order which will not have the Price Improvement feature and hence won't trail. However, if you want to trail the order for remaining quantity, you can convert the partly executed order in to Price Improvement order.

Yes, your Price improvement Order will stop trailing and get converted into Normal future Order by System in case it does not meet any of the existing validations applicable to normal Futures product like price range, quantity or value checks etc. Also Price improvement trailing flag will become 'N' in Order Book.

. Can trailing be disabled during the day for already enabled underlying? What will happen to my existing order in such a case?

Yes, trailing can be disabled as per internal risk call by I-Sec and your Price Improvement order may stop trailing in case trailing gets disallowed for any reason during the day but your square off Price Improvement Order will continue to trail.

. What will happen if my Price Improvement order remains unexecuted during the day?

All unexecuted orders will get expired post market hours. You can place a fresh Price Improvement order for the next trading day.

Funds will be blocked as existing like Future. Margin percentage can be seen in Stock List page.

. What will happen to my Price Improvement Order if available limit is not sufficient to trail the Order?

Your Price improvement Order will stop trailing and get converted into Normal future Order by System in case, if available Limit is Insufficient to trail the order. Also Price improvement trailing flag will become 'N' in Order Book.

. Will my Price Improvement order trail when the price feeds for a stock are not received?

Your Price Improvement order will not trail for a stock whose price feeds are not received due to any reason.

. Will my Price Improvement order trail for the price feeds received when the order acknowledgement process is underway?

Your Price Improvement order will not trail for the price feeds received between the time when order modification is sent to the exchange and its acknowledgement is received.

. How will the settlement of my executed Futures Price Improvement order happen?

Once the Futures Price Improvement Order is executed it will be treated like any normal Futures trade and all the existing functionality and processes for Futures would continue for such executed Futures Price Improvement orders.

. What will be the brokerage charged on trades under Futures Price Improvement order?

Once the order is executed it will behave like normal Futures and existing brokerage plus other charges as applicable for Futures trades in your account would continue to apply to such Trades under Price Improvement Order feature.

Valid Till Cancel (VTC) Square off order is a new facility offered through ICICIdirect.com using which you can place buy and sell Square off Limit orders for open positions in Future contracts by specifying the date till which you want the order instruction to be valid, if not fully executed/cancelled/rejected . The period selected by you should be within the maximum validity date defined by ICICI Securities Ltd. (I-Sec) which will be the Expiry date of the respective contract chosen by you.

When you place a VTC Square off order, you give an order instruction to I-Sec such that if the order is not executed for the entire quantity, I-Sec will be authorised on your behalf to place fresh orders for the unexecuted quantity in your account on the subsequent trading days till the entire quantity is executed upto the net open position in that contract or till the validity expires or order is rejected or cancelled (due to any reason), whichever is earlier. The feature allows you to specify the maximum date to ensure that order is placed on your behalf by I-Sec everyday till the maximum validity date chosen by you.

Your Futures VTC Square off order will remain valid till the maximum valid date if the order remains unexecuted and if not cancelled / rejected and will be expired at the end of every trade date . At the end of day, after market hours (post order being expired), I-Sec will place overnight orders on your behalf at the same limit price and for the unexecuted quantity for the next trade date provided your validity date is less than or equal to the next trade date and your order is neither cancelled nor rejected.

For example, on trade date 13-08-2015, you can place a square off buy order with VTC order validity to square off your open position of 100 quantity of FUT-NIFTY-27-Aug-2015 at a Limit price of 8404.05 with order validity date 27-08-2015. Hence your VTC order will be valid till 27-08-2015 if not fully executed or cancelled or rejected.

No. You can place VTC Square off Orders only in Futures Product under F&O Segment.

. Can all clients of ICICI Securities Limited avail Futures VTC Square off facility?

Yes. All online existing and new clients of ICICI Securities Limited who are eligible to trade in Futures under the F&O segment can avail VTC facility for placing their Futures Square off orders.

. Can I place Buy Square off and Sell Square off orders with VTC order validity?

Yes VTC order validity is available for all square off orders under Futures product which could be both Buy as well as Sell square off orders .

No. You cannot place SLTP Futures Square off orders with VTC order validity. You can only specify the quantity to be bought or sold and the limit price at which the order needs to be placed.

No. Future Square off order with VTC order validity are allowed only with a Limit order type and you cannot place a market order with VTC order validity.

VTC Square off facility allows you to place buy/sell square off orders under Futures product for the unexecuted quantity of your Future open postion as per your limit price till your specified order validity date or till the entire quantity is executed, whichever is earlier provided your VTC order is not cancelled or rejected. With this facility if your square off order remains unexecuted on a specific trade date you are not required to login again for order placement and place the same orders repeatedly at your chosen Limit price. I-Sec provides you the flexibility of using this facility and providing the validity date, pursuant to which I-Sec will place the orders in your account on your behalf during the VTC order validity date.

. Do I need to allocate funds for placing Future Square off orders with VTC order validity?

No. Your Buy/Sell VTC Square off orders are similar to your Normal Square off orders except the validity date.

Order Validity Date means the date chosen by you while placing Future Square off orders with VTC order validity. This date has to be equal to or less than the maximum validity date defined by I-Sec (currently Expiry date of the contract) which would appear as the default date against the date field besides VTC order validity which will be the Expiry Date of the Contract. For example, if the maximum validity date defined by I-Sec is the expiry date then the order validity date can be less than or equal to the default date appearing against the date field besides VTC order validity. If the contract Expiry Date is August 27, 2015 then August 27,2015 would appear as the default date besides VTC order validity. In this case you can choose the VTC order validity date as less than or equal to August 27,2015.

You can specify the order validity date by selecting from the calendar available on the order placement page near the VTC order validity radio button. Alternatively, if the date is not selected, the default date, which is the maximum allowed validity date for such orders, will be considered by I-Sec as your validity date for the orders placed by you.

If your VTC order validity date falls on a non trading day, the order is expired by I-Sec on the last trading day which falls prior to such order valid date which is a non trading day. Post the expiry, the status of VTC order is updated as Expired (Closed).

For example:
You have placed a VTC request first on 23-07-2015 for squaring off 25 Quantity of NIFTY Future contract at a Limit price of Rs. 8600 with order validity date of 25-07-2015. In this case: Start Date = 23-07-2015 Thursday
Validity Date = 25-07-2015 Saturday i.e. Trading Holiday

Thereby, if on 23-07-2015 your order with VTC order validity date of 25-07-2015 remains unexecuted or partly executed, then I-Sec will place the same order for the unexecuted quantity as overnight order at end of day of 23-07-2015 for the next trade date i.e. 24-07-2015. If on 24-07-2015 the order still remains unexecuted then I-Sec will not place the order on subsequent trade day since the valid date 25-07-2015 is less than the next trade date (27-07-2015) this order would get Expired (Closed).

. Do I need to log in on every trade date to place the unexecuted Future Square off order having a future VTC validity date?

Once you have placed your VTC Square off order, I-Sec will place orders for the unexecuted quantity of your VTC order for all the days during the validity period or till the quantity is fully executed or canceled or rejected due to any reason. You need to login to your account only to monitor the status of such orders.

VTC Square off orders can be placed in all Future contracts that are available for trading in Futures segment.

You can place VTC orders on National Stock Exchange(NSE). Kindly note that VTC is an additional facility in the nature of a new order type offered by ICICIdirect.com to its customers and is not a product provided by Exchange.

Yes. You can place VTC Square off orders (only Limit order type) at any time during market hours and even post market hours when the site is open for placing overnight orders.

. How many VTC Square off orders can I place in a day? Is there any restriction on the number of contracts in which VTC Square off orders can be placed?

No, there are no such restrictions. You can place multiple VTC Square off orders in a day upto the open position quantity. Also, orders can be placed in different contracts as well as with different validity dates in the same contract upto the open position quantity after considering the quantity for which cover square off order already placed.

. What will happen in case there is a corporate action happening in the underlying in which I have placed VTC Square off order and order is still valid?

If a corporate action is announced in an underlying then such scrips are disabled by I-Sec for VTC overnight order placement on your behalf from Ex date - 1 day till Record date. If your VTC order in such scrip is still valid then your VTC Square off orders in such underlying contracts will get rejected during this period and orders will not be placed on subsequent days post rejection by the system. This is to safeguard your interest and avoid placement of orders at unrealistic prices due to the impact of corporate action. You are thereby requested to login into your account to see the status of orders in such contracts and place fresh Square off orders again at appropriate prices in case you wish to continue with VTC Square off orders in such scrips after corporate action has been completed.

. When would orders for the unexecuted quantity of VTC Square off orders be placed by I-Sec ?

If your VTC square off order remains unexecuted and is neither cancelled, nor rejected due to any reason, then daily orders for the unexecuted quantity will be placed as overnight orders by I-Sec during the validity period, i.e. until the order validity date is less than or equal to the next trade date.

The orders would be placed on the next trading day. Orders would be sent along with all overnight orders after market opens for trading on the next trading day. I-Sec would send these orders to Exchange post market opening on a best effort basis and cannot be held responsible for any losses incurred due to delays in sending these orders to the Exchange. You are required to monitor the status of these orders so that you can modify the VTC order price/quantity or place fresh order in case of rejection/cancellation, if you so desire.

You can view the details of VTC orders in your account under the normal F&O online order book.

To view further details of orders placed by I-Sec for the unexecuted quantity during the validity period, you can visit the Order placement log on the F&O Order Book. The Log is displayed on clicking the order reference hyperlink of your respective order. The Remarks column under the order log displays the "VTC Order" rejection/cancelation remarks, if any.

. How would I know that orders for the unexecuted quantity of VTC orders will no longer be placed by I-Sec?

You can view the status of your VTC orders by visiting the order book of your F&O trading page.

On clicking the order valid date against the respective order, if the 'Status' column displays as 'Rejected (Closed)' or 'Expired (Closed)'then the order would not be further placed by I-Sec as the same has been closed either due to rejection or expiry of the validity period.

If the same 'Status' column displays status as 'Expired' under the valid date hyperlink and valid date is more than the current trade date then the order is still valid and such expired orders would be placed by I-Sec for the unexecuted quantity.

. How can I differentiate between VTC order validity and other Future orders?

VTC orders will have a validity date as defined by you and will be displayed under the Valid Date/Order Ref. column in the order book. You can also view 'VTC order' remarks in F&O ORDER LOG to identify VTC order.

Yes. You can login to your account and visit the F&O order book to modify the quantity, limit price or Validity Date of your VTC orders. Please note that you will be able to modify the order only when the order is in 'Ordered status' (during market hours) or 'Requested status' (after market hours).

Yes. You can login to your account and visit the F&O order book to cancel your VTC orders any time when the order is in 'Ordered status' (during market hours) or 'Requested status' (after market hours).
Once you have cancelled your VTC order, your order would stand cancelled and thereafter no such VTC orders would be placed by I-Sec on your behalf.

. Is the brokerage rate different for normal Future transactions and VTC orders?

No. There is no change in the brokerage rates for your normal Future transactions and Futures VTC orders. The Brokerage rates and applicable charges are same for your normal Future transactions and VTC orders under the Futures product.

. If my VTC square off order quantity is greater than the available net open position quantity in that particular contract then will it be placed at exchange on the next trading day?

No. I-sec will place the VTC square off order (for unexecuted quantity) on the next day only if the VTC order quantity is less than or equal to the available net open position quantity in a particular contract.

The settlement of your VTC orders will be done in the same manner as that of normal Future transactions. Please click here to know more about settlement related FAQs.

. Would my rejected VTC orders be re-triggered /placed by I-sec for placing orders on my behalf ?

If your order is rejected due to the 'Price range reason' then only it will be re-triggered / placed by I-sec on next trading day.

Please note your VTC orders rejected due to any other rejection reason will be not be re-triggered / placed by I-sec.

For e.g. If Customer placed Future VTC order on 27 Nov 2017 and if it is unexecuted for the day. Then system will place VTC order for next trade date i.e. 28th Nov 2017 and if it is rejected due to Price range on that day i.e. 28th Nov 2017, then only system will place VTC Order for 29th Nov 2017. For any other rejection reason this rejected VTC order will not be placed for the next trade date i.e. 29th Nov 2017 onwards.

. Can I to cancel or stop VTC order which are rejected everyday due to price range ?

Yes, you can stop or cancel such orders which are rejected everyday using the facility 'Stop VTC' available on Order book. This link will appear only against the VTC orders rejected due to 'Price range' as they are resent by I-sec on your behalf. Such VTC orders will not be resent on next trading day.

Rollover is an additional facility which will help you to square-off your near month position and take a fresh position in the same direction in Middle/Far month contract of your choice. Rollover order will be 2 L(you may refer above FAQ on 2L) IOC(Immediate or cancel) order and both orders to have same number of lots.

No. Currently, rollover facility will be provided only for your Futures positions

No. Rollover order can be placed only for your Futures positions in the Near month expiry contracts.

Rollover facility will be provided only on National Stock Exchange of India (NSE).

A link named 'Rollover' will appear against your near month future positions on the open position page. You can click on this Rollover link to place rollover orders.

Once you click on Rollover link from your open positions page, a 2 Leg order placement page would open. From the same page you can place 2 orders, first being the square off order for your near month Future position against which Rollover link was selected and second order would be to create a fresh position in the same direction as that of the existing near month position. You can choose to select the second order in either middle month or far month contract. For both the orders under rollover, you can enter the quantity upto position quantity, select the order type as (Limit or Market) and enter appropriate price in case of limit orders. You can place same number of lots in both orders forming part of rollover and either both will get immediately executed or cancelled for the same number of lots depending on the match available at exchange end.

Yes. It is possible to place both Market and Limit orders under the Rollover facility. However, it is preferable to choose both the order type as market for smooth Rollover. You are requested to note that in case of market orders if the scrip is liquid and less volatile then execution may take place close to the current market price prevailing but in case of illiquid scrips and volatile market your execution price may vary from the current market price which was prevailing at the time of Rollover order placement.

No, Rollover order can be placed only upto the net open position quantity. You would need to consider the cover orders already placed against such positions for which the rollover facility is being used and Rollover only the balance open position quantity.

Yes, you can place part Rollover order against the open position quantity in multiple of the lot size.

For example: If you have buy position of 150 quantity in Nifty Futures February contract and lot size is 50, then you can place rollover orders for 50 or 100 or 150 quantity of your choice.

You cannot place rollover order, to the extent of a cover square off order quantity, which is already placed by you but you can still continue to place Rollover orders to the extent of remaining net open position quantity.

For example: If you have buy position of 150 quantity in Nifty Futures February contract and you have already placed cover square-off order for 50 quantity then you can place rollover orders only upto the remaining position i.e.100 Quantity.

Yes. Rollover facility will be available against both buy as well as sell open positions, if they are in the near month Future contract.

In order book, under the "Order Ref." column, a caption that "This is a Rollover Order" is provided to help you easily identify your rollover orders.

Rollover orders are 2L IOC orders and like other orders will get executed at exchange end, only if they get a suitable match. Since these orders are 2L IOC orders, if there is no match they stand cancelled on immediate basis. Thereby, it is preferable that you visit the online order book to check the status of your rollover orders and in case they are not executed you may choose to place rollover again.

. Will Rollover facility be available if I am mapped to SPAN or Non-SPAN margining?

Yes, Rollover facility would be available to you under both SPAN as well as Non-SPAN margining system.

No, You cannot place Rollover orders after market hours. Rollover facility is available only during market hours.

You will be able to rollover only contracts which are enabled for trading under Future product. You may visit the 'Select Contract' page displayed after clicking 'Place Order' page to know the list of contracts enabled for trading. In case all future month contracts are disabled due to liquidity then Rollover will not be allowed in that particular underlying.

. Will I be able to place Rollover order on the date of expiry of Futures contract?

Yes, you will be able to use the rollover facility till the date of expiry of the Futures contract provided that particular underlying is enabled for Rollover and contract is enabled for trading.

At the time of Rollover order placement, additional differential margin required will be computed after giving the effect of rollover trades in both the months as follows:

Additional margin required on Rollover = Margin required to take position in the new month contract - Existing margin blocked on near month position + Notional Loss/Profit of Near Month Futures contract

If you do not have sufficient limit to bring additional margin required on Rollover, then you will not be allowed to place Rollover order.

For Example: You have a near month position of 50 quantity Buy in NIFTY say Fut-Nifty- 28-Feb-2013 at Rs. 6080 and IM% is 8%. You now want to Rollover this entire position in Fut-Nifty-28-Mar-2013 at Rs. 6100 and the LTP of Fut-Nifty-28-Feb-2013 is 6075 at the time of rollover.

Then in the above example;

Existing Margin blocked = 6080*50*8% = 24320
New Margin required = 6100*50*8% = 24400
Notional Profit/(Loss) = (6075-6080)*50 = 250 Loss

Additional Margin required to Rollover = 24400 - 24320 + 250 = 330

Rollover link will be available if one of the spread contract positions is in the near month. Please note that if you place rollover orders in the same contracts as that of the existing spread position it may result into square off of the entire spread position and no rollover will happen. Thereby, you are requested to to use the rollover facility only in case of non spread positions and if you wish to square off your spread position it is preferable that you use the existing joint square off facility under Non SPAN or use the Rollover facility but this will result in square off of both the contract positions forming spread.

No. There are no additional charges for rollover and the existing brokerage and applicable statutory charges would be levied even on the Rollover transactions depending on the brokerage plan availed by you.

1. What kind of Settlement obligation will I have in futures?

You can have following Settlement obligation in futures market:

1.Profit and loss on squared off position
2.PayOut/PayIn due to Profit or loss on EOD MTM of open position
3.PayIn due to Brokerage and statutory levies
4.PayIn due to applicable Taxes

2. Where can I see my Settlement obligation?

You can see your obligation on cash projection page. The date on which amount is to be deducted from your account or deposited in your account can be checked from the 'Cash Projection' page. You can even see the historical obligation (already settled) by giving the respective transaction date.

3. When is the obligation amount debited or credited in my bank account?

All futures obligation is settled by exchange on T+1 basis. This means that any obligation arising out of transactions in futures or EOD MTM on day (T) is settled on an immediate next trading day. This further means that if you have a debit obligation on day (T), the payment will have to be made on day (T) itself. Whereas, if you have a credit obligation, amount would be credited in your account on T+1 day. If T+1 days is holiday, credit would be given on the next working day.

4. According to cash projections, payin was scheduled yesterday but amount has not been deducted from my Bank Account?

If the payin amount is not significant, ICICIdirect may decide not to run the payin as scheduled. The outstanding payin amount may, at the discretion of ICICIdirect, be clubbed with future payin amount or internally adjusted against the futures payout. Payin and payout internally adjusted will be clearly defined in cash projection.

5. On T+1 day I have payout for a particular trade date and also payin for different trade date? Will payout and payin run separately ?

No, if different payin and payout are falling on the same day, amount would be first internally adjusted against each other and only net amount would either be recovered or paid. In cash projection, distinct particulars would be given for payin/payout internally settled and settled by way of debit/credit in bank.

6. I have allocated funds for secondary market- Equity. Can I make use of those limits for F&O market also?

Allocation has to be done separately for Equity and F&O market. If you have allocated some funds for secondary market- equity, you will get the corresponding trading limits only for secondary market - equity. For trading limits in F&O, you will have to do separate allocation through "Allocate Funds" page.

1. What is meant by 'Convert to FuturePLUS'?

'Convert to FuturePLUS' is a newly added feature provided under Future product where one can convert his existing position under a contract in Future to FuturePLUS position of the same contract within the stipulated time prescribed by I-Sec.

2. How do I convert my Future position into a FuturePLUS position?

You will find the link of 'Convert to FuturePLUS' in the 'Actions' column of Future open positions page against each position under a contract. Once you choose to convert the existing Future open position to FuturePLUS position, a remark will appear stating "You are requesting to convert Future position to FuturePLUS".

3. Can I convert part of the open position under a contract to FuturePLUS position?

Yes. A part quantity out of the Future position quantity under a contract can be converted to FuturePLUS position.

4. Can I convert pending order / partly executed pending order from Futures to FuturePLUS order?

No. The orders placed in Futures cannot be converted to FuturePLUS orders. Only open position under a contract is allowed to be converted from Future to FuturePLUS Position.

5. How does 'Conversion to FuturePLUS' impact limits?

When Futures position is converted to FuturePLUS, the excess margin amount blocked for Futures position would be released after computing the margin required for FuturePLUS positions. The excess margin to be released on conversion would be the difference of the required margin for FuturePLUS and the already blocked margin for Futures position. The limit would be accordingly increased with the differential amount of margin requirement.

In case, there is a MTM loss at the time of conversion from Futures to FuturePLUS there are two scenarios which would impact limits as below:

a) When the loss is less than or equal to the additional released Margin at the time of conversion to FuturePLUS.

In this case, when the loss is less then or equal to the additional released margin, the amount equivalent to loss would be blocked from the additional released margin.

b) When the loss is more then the additional releasable Margin at the time of conversion to FuturePLUS.

In such a case, the system will block the loss upto additional releasable margin. The entire loss would be deducted from the available Margin of the FuturePLUS position. If in such a case,the available margin falls below the minimum margin, ICICIdirect may at its discretion at a suitable time run the Intra-day Mark to Market process. In case there are no limits available to block the entire loss, system will still allow you to convert the positions to FuturePLUS without blocking any amount from free limits but the Intra-day Mark to Market process would square off the positions if the available margin falls below the minimum margin.

For Example, consider the following scenario for Future Buy case,

Particulars	Contract	Qty	Base Price	IM%	MM%
FuturePLUS	FUT-RELIND-26-April-2012	250	1000	6.00%	4.00%
Future	FUT-RELIND-26-April-2012	250	1000	11.00%	8.00%

Current limit available = Rs.50000/-
a) Margin blocked on taking Future position= 250*1000*11% = 27500.
Free Current limit available after the position taken=50000-27500=22500
b) On Convert To FuturePLUS, required Initial Margin for FuturePLUS = 250*1000*6% = 15000

Additional Margin that would be released and added to limits if no loss=27500-15000 =12500

a) When the loss is less than or equal to the additional released Margin i.e. loss is less than or equal to Rs. 12500.

When converting to Future PLUS if the LTP of the contract falls to say Rs.980, then in such a case,

Thus,on conversion to FuturePLUS the total amount that would be blocked is 15000(Required Margin for FuturePLUS position) + 5000(Loss) = Rs. 20000.

Thus in this case on 'Convert to FuturePLUS' additional margin of Rs.7500 would be added to your current limits.

b) When the loss is more than the additional releasable Margin on conversion to FuturePLUS i.e.Loss is more than Rs.12500.

When converting to Future PLUS if the LTP of the contract falls to say Rs.945, then in such a case,

Thus,on conversion to FuturePLUS the total amount that would be blocked is Rs. 15000 (Required Margin for FuturePLUS position) + 12500(Loss upto additional releasable margin) = Rs. 27500.

Thus in this case on 'Convert to FuturePLUS' no additional margin would be added to your current limits.

6. Is there any additional brokerage charged on Future positions converted to FuturePLUS?

No. The brokerage charge applicable would remain the same as it is in the case of Futures product.

1. What are Options contracts?

An 'option' is a type of derivative contract that gives the buyer the right (but not the obligation or the liability), to buy or sell a specified quantity of the underlying asset (in this case, stocks or an index) at an agreed price (strike/exercise price) on or before the specified future date (expiration date). The seller or writer of an option has the obligation to fulfill the contract if the holder wishes to exercise the option. Seller or writer receives premium from the buyer of the option in return of the commitment given by him. Each index/stock option contract has a market lot or certain determined number of index units/shares that constitute once contract.

2. What is Options Trading at ICICIdirect?

At icicidirect.com, you can trade on Index and Stock options on NSE. In options trading, you can take buy/sell positions in index or stock(s) contracts expiring in different months with various Strike Prices. If, during the course of the contract life, the price moves in your favor, you make a profit. In case the price movement is adverse, you incur a loss. To take the buy positions on index/stock options you have to pay certain premium. To take sell positions on index/stock options, you have to place certain % of order value as margin. With options trading, you can leverage on your trading limit. However, the risk profile of your transactions goes up.

4. What is a strike Price?

It is the Price at which the underlying asset is agreed to be bought or sold.

5. What is a premium on Buy Options?

Premium is the down payment the Buyer of Call or Put is required to make for entering the options agreement.

6. What is Margin on Sell orders in options?

Since the seller of the option is exposed to higher risk than the buyer of an option, a seller has to place certain amount as margin depending on the underlying portfolio including Futures and Options positions within that underlying. There would be different margin amounts applicable to different stocks and can be changed during the life of the contract depending on the volatility in the market.

7. What is a European option?

European options give the holder the right, but not the obligation, to buy or sell the underlying instrument only on the expiry date. This means that the option cannot be exercised early. Settlement is based on a particular strike price at expiration. Currently, in India index and stock options are European in nature.

8. What is an American Option?

American options give the holder the right, but not the obligation, to buy or sell the underlying instrument on or before the expiry date. This means that the option can be exercised early.

9. How is Options Contract Defined?

An European Put ACC Options expiring on 31 May 2007 with a strike price of 150 is described as OPT-ACC-31-May-2007-150-PE.

OPT denotes Option, ACC is the underlying, 31 May 2007 is the expiry date of the contract, 150 is the strike price, P/C denotes whether the option is Put or Call and E/A denotes whether the option is European or American . Currently, in India index and stock options are European in nature.

10. Which contracts under an underlying are enabled for Options trading? Why is the contract list restricted to specific contracts only under various underlyings?

ICICIdirect enables selected contracts under various underlyings for trading in the Options segment. Only those contracts, which meet the criteria on liquidity and volume are considered for Options trading. This is required as there may be a risk of lower liquidity in some contracts as compared to active contracts . As a result, your order may only be partially executed, or may be executed with relatively greater price difference or may not be executed at all. Thereby to safeguard your interest such illiquid contracts are disabled for trading on www.icicidirect.com. The list of contracts is subject to modification by ICICIdirect from time to time.

11. Can an enabled contract be disabled later ?

Yes, it is possible that ICICIdirect disables a contract that was enabled earlier. This could happen due to various reasons like the underlying is disabled as it reaches market wide open position limits, the contract has become illiquid or any other reason to safeguard the interest of investors.

12. Can I square off my position once the contract is disabled?

Yes, you can square off your open positions using the square off link on the Open Positions page when the contract is disabled for trading.

13. Where can I view Options contracts?

Only enabled contracts will be displayed for trading on the site when you select contracts either through the 'Place order' link or the Stock list page on www.icicidirect.com.

14. Would Different Margin amount be applicable to Different underlying Stocks?

Yes, ICICIdirect would levy different margin amount, as it feels is necessary for Risk mitigation, depending on the Stock volatility, market volatility and the margin prescribed by the exchange on different stocks.

Thus all ACC stock option contracts may require a margin amount in the range of say Rs.

30000 to Rs.

35000 per lot, whereas all BHEL option contracts may require a margin amount in the range of say Rs.

25000 to Rs.

30000 per lot.

15. Can margin amount be changed during the life of contract?

Yes, margin amount can be changed during the life of the contract depending on the volatility in the market. It may so happen that you have taken your position and Rs.

25000 margin is taken for the same. But later on due to the increased volatility in the prices, the margin amount is increased to Rs.

30000. In that scenario, you will have to allocate additional funds to continue with your open position.

16. How is margin (premium) calculated on Buy orders in Options?

Buy orders irrespective of whether it is a Call or a Put, is margined only to the extent of the Premium payable on the order. For e.g. If you place a Buy order in OPT-ACC-30-May-2007-150-PE for 1500 quantity at a Limit price of 20 would attract margin of Quantity * Price at Rs 30,000/-.

17. How is margin (premium) calculated on Buy Market orders in Option Contracts?

Buy orders irrespective of whether it is a Call or a Put, is margined only to the extent of the Premium payable on the order. In case of market order, I-Sec system blocks margin on the basis of Best five BID and ASK order prices available in the exchange. However the BID and ASK prices are subject to change anytime and hence there can be difference in the price prevailing in the exchange at the time of order placement and the price at which order gets executed. For e.g. If you place a Buy Market order in OPT-ACC-30-May-2002-150-PE for 1500 quantity and likely execution rate based on ASK prices available in market at that point of time is Rs 20, then margin will be blocked at order placement would be Rs 30000 (1500 * Rs. 20). However, since ASK and BID prices are subject to change anytime, hence the execution of the order may happen at different price (say Rs. 22). Post execution, system would re-block differential margin based on actual execution price. If the differential margin based on actual execution price is not available in the limit allocation, then limit will become negative to that extent. In above example margin would be Rs 33,000 (1500*Rs 22). If sufficient free limit is not available in limit allocation then F&O limit will be negative to the tune of Rs. 3000.

18. What happens in case my F&O Limit goes negative due to placing Option Buy order at Market price or for any other reason?

I-Sec system has internal process to handle negative limit of clients. In any case if client limit has gone negative in F&O segment, then system will first cancel the pending fresh orders if any and will appropriate the margin released from that cancellation towards the negative limit, if limit still remain negative, then, system will proportionately withdraw margin from other marginable open position in F&O segment, if any, and that F&O position may get square off in system MTM process. Margin release in this process will get appropriate towards negative limit. If limit still remains negative, then system will square off required quantity of Option Buy position, if any, as recovery towards negative limit. Such process will be triggered at periodic time interval during market hours.

19. How is Margin calculated on Sell orders in Options?

Since the seller of the option is exposed to a higher risk than the buyer of an option, the margin amount is required to be kept slightly different as compared to Buy orders. The margin amount required would be calculated considering the short option orders for the underlying portfolio. ICICI direct would specify a Margin amount as it feels is commensurate with the volatility and the current position of the Stock or the Index. You can check the margin amount required on your underlying portfolio by visiting the "Margin Calculator" under F&O section of the trading page on www.icicidirect.com

20. Would the Premium to be received be considered for Marginable sell orders?

No, Premium benefit will not be given at the time of placing Marginable sell orders.

Once the order is executed the benefit of the Premium is provided in the limits and the Premium is now a crystallized entry for which you would get the Payout on the indicated payout date.

21. Is separate Margin Blocked for Buy and sell Orders?

No, margin is blocked on the entire underlying portfolio (including futures and options pending orders and open positions) depending on whether the new order entered, would attract higher Margin on the underlying portfolio.

22. Is margin blocked on all Options Orders?

No. Margin is blocked only on orders, which result in an increased Risk exposure. Margin is not recovered from an order, which is cover in nature. However in case of buy cover order where the premium exceeds the margin blocked, extra margin is required for placing the order. Also if a cover order can result in removal of hedge of any existing position then extra margin would be levied as such cover orders would increase the risk exposure of the underlying portfolio.

23. What happens if buy or sell orders are placed when there is some open position also in the same contract?

In both cases buy and Sell, the underlying portfolio level margin is calculated and depending on the worst case probable portfolio considering the orders, margin amount would be arrived at underlying portfolio level.

24. How do I place a square off order to cover my open positions?

You can place the square off order either through the normal buy/sell page or through a hyper link "Square off" on the "Open Position" page. It is advisable to place cover order from open positions page through the square off link since the open quantity is available and you are aware of the quantity for which you are placing the square off.

25. How is the profit / loss recognized on execution of square off (cover) orders?

In case of Options the cover order Buy or Sell though reduces the Open position or closes out Open position accordingly, both the orders are treated separately.

26. Can I Exercise My Buy (Call/Put) Option?

No you cannot exercise your Buy options since currently in India all Index and Stock options are European in nature.

In case of European Options the contracts can be exercised only on the last day of the contract expiry. All In the Money European contracts will be automatically exercised by the exchange on the last day of contract expiry, hence there will be no additional option for exercising on www.icicidirect.com.

In case of an American option you can place an exercise request upto the Open (Call/Put) buy position anytime except on the Last date of the contract expiry.

27. Is there a specific time when I can place my exercise request?

Currently, in India all Index and Stock options are European in nature thereby you don't have the option to place exercise but they will be auto exercised on the expiry date if they are In-the-Money.

28. What is the Effect of Exercise?

The profit on exercise is reflected in the Cash Projections and is added to the Limits. The realized profit on the contract is also reflected in the Portfolio page.

29. How is Profit calculated on Exercise?

In case of Exercise, the profit (i.e. when the position is In-the-Money) is calculated as the difference between the Exercise Settlement Price of the Underlying shares in the cash market and the Strike price of the contract. This is then multiplied by the exercised quantity and reduced by the applicable charges, statutory levies and taxes.

30. Is exercise quantity considered for Margin calculation?

No. Currently, all option contracts are European in nature and expire on the last day of expiry. Thereby, excercise will take place on last day of expiry and such expired contracts will not be considered for margining after they are closed out.

31. Is part exercise possible by the exchange?

No, only full quantity will be exercised by exchange.

32. What is assignment?

In case you have a Sell position, you may be assigned the contract i.e. you will have to Buy the Underlying in case of Put and sell the Underlying in case of Call. However since options are currently cash settled you would have to pay or receive the Money.

33. How do I know I have been assigned?

The Assigned Qty in the contract will be shifted from the Open Position Page and will reflect in the Assignment book; the Limits page will also accordingly reflect the Payin dates on which the assignment obligation is payable.

34. Do I have any control over Assignment?

No, You have no control over Assignment since it is initiated by the exchange. The Assignment process is completely decided by the exchange.

35. Is there a Daily EOD MTM just like Futures?

No, there is no daily EOD MTM in case of options like in case of futures.

36. Is Intraday MTM done in case of options?

Yes, intra day MTM is done for the entire underlying portfolio including Long / Short Futures and Short option positions. ICICI Securities may at its discretion also square off long Option contracts in those cases where your limits have become negative even after squaring off all long/short Futures and short Option positions.

37. What is the Basis of MTM in case of Sell options and what happens in the MTM process?

Intra day MTM process is the same for entire underlying portfolio including Futures and Short options. It is the same as discussed above under Futures section as it is done at portfolio level and not separately for Futures and Options.

38. What happens if I do not square off the transaction till the last day?

All positions, which are not exercised or assigned will be marked as closed off and the position will not appear in the open positions page. The closed off entry will appear on the Portfolio Details page as Close out .

39. What is meant by a freeze order? What should I do in case an order is Freezed?

Orders in Options may get freezed at the exchange end. There is only quantity freeze (no price freeze) in case of options. In case of Stock Options single order value should not be beyond Rs.

5 Crores and the quantity for each stock is specified by exchange from time to time. In case of Index Options the quantity should not be beyond 15000. For further details on the respective quantities for each stock please refer NSE site http://nseindia.com/content/fo/qtyfreeze.xls

40. Where can I see that my order is freezed?

The orders in F&O that get freezed appear with a blank status in the order book and the details of freeze can be seen in the order log by clicking on the order reference hyperlink.

41. What should I do in case an order is Freezed?

If your order gets freezed, you can call up the call centre number and provide the required details about the order. ICICI Securities will inform the exchange about the details of your freezed order. Exchange may at its discretion release or reject the request for releasing Freezed orders. Till the order is unfrozen, the limits are blocked to the extent of order which got frozen.

42. Is there any hedging benefit within Options or between Futures and options?

Yes there will be hedging benefit in the form of reduced margins within offsetting Options positions within an underlying portfolio and also between Futures and Options offsetting positions within an underlying portfolio depending on the type of positions created by you. However, it shall be at the discretion of ICICI Securities to consider a particular combination of positions as hedged positions and the margin benefit may not be available on all hedged/offsetting positions. Thereby, you are advised to monitor all the open positions and especially monitor at the time of square off if a hedged position results into naked position. In such case you are required to allocate sufficient margin amount in advance before placing the square off order for one leg of the hedged position to prevent the other leg (which will become naked if square off order gets executed) from being square off by I-Sec due to insufficient margins on execution of your square off order for one leg of the hedged position.

43. What is Square Off all positions at Market?

Square Off all positions at Market feature will facilitate you to square off all open positions across all underlyings of a product at market with a few clicks. This link is available on open positions page for Future, FuturePLUS and Option products. There shall not be any pending order(s) in any of the contract of a product for using this feature. This feature cannot be used for selected positions and therefore you are advised to keep in mind the liquidity and impact cost in the open position contracts while using this feature. There can be huge differences between bid and offer prices in certain contracts due to less liquidity and squaring off those positions at market may fetch you unfavorable execution price.

2. When will the obligation amount be debited or credited in my Bank Account?

Assuming you place a transaction on day T, Options obligation will be settled as per the following table

Condition	Obligation Settlement
Option Premium Receivable	T+1
Option Premium Payable	T
Exercise Profit in case of Stock / Index	T+1
Assignment Loss in case of Stock / Index	T
Brokerage	T

3. Where can I see my settlement obligation?

You can see your obligation on the Cash Projection page. The date on which the amount is to be deducted or deposited in your account can be checked from the "Cash projection" page. You can even see the historical obligation (already settled) by giving the respective transaction date.

4. On T+1 day, I have a Payin for a particular trade date and also payout for a different trade date? Will payin and payout be run separately?

No, if payin or payout falls on the same date, the amount is internally set off and only the net result payin or payout will be debited or credited to your bank account.

In cash projections page, distinct particulars would be given for payin/payout internally settled and settled by way of debit/credit in bank.

1. Which securities in Futures and Options segment are eligible for physical settlement?

To know the list of securities under F&O which are eligible for physical settlement, please refer the following path:
F&O > Holdings and Services > Stock List
The value in the "Physical Settlement" column will be displayed as 'Y' if the underlying is enabled for physical settlement else the value displayed will be as 'N'. Currently I-Sec proposes to enable only Futures product under these underlyings eligible for physical settlement.

Note:
Exchange prescribes underlying securities list which will be eligible for Physical Settlement. However, I-Sec, at its sole discretion, may enable or disable any of these exchanges prescribed underlyings or contracts there under.

2. Which of my open position in stock derivatives will be physically settled? How is settlement obligation computed?

As mandated by exchange, the following positions in respect of contracts identified by Exchange shall be physically settled:

3. What can I do to my positions in near month F&O contracts eligible for physical settlement?

You can opt for one of the below two options:
a. Rollover your position to next month's contracts
b. Square off your open positions in near month contracts before expiry or till such time I-Sec runs the End of Settlement square off process to close all open positions on best effort basis prior to expiry.

4. What will I-Sec do if I don't take any action on my near month positions of futures and options contracts eligible for physical settlement?

If you don't take any action then in order to avoid the obligation of physical settlement, I-Sec, at its sole discretion, willrun the End of Settlement (EOS) process for Physical Settled Underlyings and do the below on best effort basis: a. Cancel all your fresh and cover pending orders against the specified near month contracts in such physical settled underlyings.
b. Square off all your near month expiring open positions in such physical settled delivery based underlying.

Note:
I-Sec reserves the right to square off your open position on or any time before expiry on a best effort basis post considering the liquidity and open interest in the contract.

5. Will I-Sec run EOS process for all Physical Settled underlyings at the same day and time?

I-Sec reserves the right to run the EOS process for one or more or all underlyings eligible for Physical Settlement on the same day or different day and or time. It is solely at the discretion and judgment of I-Sec to take a call of running the EOS process for any particular underlying's near month contract or run this process for all underlyings near month contracts. This will depend on the liquidity and internal risk management criteria of I-Sec.
Kindly note in case of adhoc expiry notified by exchange I-Sec reserve right of running EOS process in all contracts in that particular underlying.

6. How will I come to know what action I-Sec has taken on my positions in near month F&O contracts eligible for physical settlement?

You can find the action taken by I-Sec by viewing your Open Positions page and referring your online F&O Order book. You can refer the remarks by clicking on your Order reference number for system placed cancellation or square off order in the order log.

7. Post cancellation and square off action taken by I-Sec, can I again take positions in those near month Future and Option contracts eligible for physical settlement?

No. You cannot take any position in such contracts as they will be disabled for trading for the entire further period till market close on the expiry day. However, you may continue trading in the intra-day products if such underlyings are eligible and enabled for intra-day trading by I-Sec.

8. Post EOS action taken by I-Sec, can I take positions inFuturePLUS, Future Plus Stop Loss and Option Plus in the contracts eligible for physical settlement?

Yes, after I-Sec runs the EOS process for Futures product you can still place fresh order and takepositions in the intra-day products namely;FuturePLUS, FuturePLUS Stop Loss and Option PLUS if the underlying eligible for physical settlement is enabled for such products.

9. What will happen in case my positions remains open in expiring contracts of underlyings eligible for Physical Settlement?

If your positions are squared off before expiry by you or by I-Sec on best effort basis then there will be no Physical Settlement obligation. However, if your positions remain open then there will be Physical Settlement obligation and it will be your responsibility to bring in the required funds or securities as required by exchange to meet the physical Settlement obligation. Further, there is possibility of Auction as applicable under the Capital Market segment.

10. Will STT charges be levied in the process of settlement/exercise of F&O by way of physical delivery?

Yes, STT charges would apply as applicable for Physical Settlement and may change from time to time. NSE has required brokers to levy a STT @ 0.10% (i.e. the rate applicable for taxable securities transaction settled by actual delivery in the Capital Market segment) on the settlement price to be paid by the purchaser of the futures contract which are settled by way of physical delivery.

Yes, with the introduction of Physical Settlement of Stock Derivatives it has become mandatory to have an active demat account linked to your trading account. This will be required if your positions in Physical Settled Stock derivative could not be closed due to any reason and Physical delivery is assigned against your open positions.

12. Is there any delivery margin required for keeping Futures and Options positions open till expiry in physical stocks?

Delivery margins are applicable only on ITM long Call & long Put option open positions from expiry - N days (say 5 days defined at the discretion of I-Sec). For more details refer FAQs on Long Option Delivery Margin for Physically Settled Stocks. Please note, there is no Delivery margin required for keeping Futures (Buy/Sell) or Short Option positions open till expiry in physically settled stocks. However, as mentioned earlier, I-Sec reserves the right to square off your open position on or any time before expiry on a best effort basis post considering the liquidity and open interest in the contract.

1. Can client hold Long option position in securities eligible for physical settlement in Equity Derivative till Expiry?

Yes, you can hold long Option position in securities eligible for physical settlement till expiry, only if, the delivery margin requirement as per exchange is fulfilled.

2. Is there any additional margin requirement to hold the long option positions in securities eligible for physical settlement till expiry?

Yes, as per regulatory requirement exchanges require brokers to charge delivery margins on In-the-money (ITM) Long Options positions in securities marked for physical settlement. This margin is required to be collected from Expiry-N days and this will be at the discretion of I-Sec basis the internal Risk management policy.

Yes, the expiring month i.e. near month contracts which are physically settled will be applied delivery margins only in case they are in-the-money (ITM) long option positions. Please note there could be adhoc expiry notified by exchange in a particular underlying and in such cases the delivery margin is required to be applied across all contracts ITM Long Options positions since they will expire in the near month irrespective of their original expiry dates.

ITM Long Option positions are identified comparing the prevailing spot price in capital market and strike price of the long option contracts as follows:

5. From when and how will the delivery margins be levied for physically settled long option positions?

Margins will be levied from Expiry-N trading day and currently N is 5 trading days which will be defined as per the discretion of I-Sec. The Delivery margins will be collected on daily basis in a staggered manner starting from Expiry-5 trading EOD onwards till expiry. Please refer the below given example on how Delivery Margins are applied:

Example of Delivery Margin:

Say a customer has ITM Long Call Option position in Apollo Tyres (APOTYR) August contract with; Quantity = 3000, Strike Price = Rs.150 and Spot remains above Rs.165 till expiry.

In this example, total delivery margin required on expiry day will be Rs. 90,000/- and the same will be collected by I-Sec in part starting from E-5 trading day onwards i.e. Delivery Margin required on first day EOD on 22-Aug-19 will be Rs.18000/-, on 23-Aug-19 Rs.36000/- and so on till expiry day of 29-Aug-19 as in below table:

Date	22-Aug-19	23-Aug-19	26-Aug-19	27-Aug-19	28-Aug-19	29-Aug-19
Days	Thursday	Friday	Monday	Tuesday	Wednesday	Thursday
Required Delivery Margin (Rs.)	18000	36000	54000	72000	90000	90000

6. Will these margins be levied during the day or at EOD? Where can I see the required delivery margin?

This LODM will be collected during the day as well as EOD. The first LODM margin will be applied from EOD of E-N day onwards till expiry and additionally from next trade day onwards during the day long option delivery margin process will be run till expiry by I-Sec, at its discretion on best effort basis. As mandated by exchange the delivery margins will be incremented from the second EOD onwards.

You may please refer the Open positions page 'delivery margin required' column to know the additional delivery margin required on your position which will reflect in red in case the same is not yet blocked or you have insufficient limits in your F&O segment. Please keep sufficient limits to avoid square off of your long options position. I-Sec will run the delivery margin collection process any time during the day to meet the delivery margins.

Yes, as required by our internal risk policy after expiry- 5 trading days your long Options position will be squared off during the day by I-Sec, if you do not maintain sufficient limits in F&O segment for the required delivery margin amounts to carry your positions till expiry day. Please note I-Sec on best effort basis will first try to cancel your open orders in options in that contract and then initiate the square off of such position where delivery margins are not sufficient.

Yes, one can keep shares as margin for the LODM margins required during the day and EOD.

9. What will happen if I have insufficient delivery margin during the day when position is taken?

If you have insufficient delivery margin during the day and if the day falls between Expiry - N days then your position will get squared off. Please keep sufficient limits in F&O segment to meet the 'delivery margin required' amount as displayed on the open position page against your position requiring margin and this amount will get updated immediately on execution of your position, if taken after Expiry- N trading day i.e. when the delivery margins are made applicable.

10. What will happen if I have insufficient delivery margin required at EOD?

If at EOD, delivery margin required is found insufficient then available limits will be blocked and remaining 'delivery margin required' amount will be updated in red against the customer's position on open position page.

11. What will happen if I have sufficient delivery margin required for ITM Option which is Physically marked?

Yes, the LODM margins collected in the form of cash will be debited from your account and reflect under I-Sec margin in your F&O limits.

13. Where will I be able to see the delivery margin levied against my long options positions?

You can view the delivery margins levied against your position by visiting the open position page and will be reflected under the head:”Delivery margin blocked” and “Delivery margin required” at contract position level.

Long options positions may be marked in red if the delivery margin required to hold the position are insufficient at EOD, so that you can keep the required delivery margin in your F&O limits to safeguard your position from getting squared off next day when I-Sec runs LODM process during the day.

15. Can I square off my position in Long Options position which are eligible for Physical settlement and are marked red?

Yes, you can square off your long option position which are eligible for Physical settlement and are marked red unless the LODM process is underway or your position is in loop.

16. When will the delivery margin be released once blocked for long options position in securities which are physically settled?

Delivery margins will be released only on square off of positions which could be full/ part and at EOD for OTM positions where no delivery margins are required.

17. Will I be able to open new positions in any of the Physically settled scrips after 4 days prior to square off?

Yes, you will be allowed to open new positions in the Physically settled scrips before the End of settlement (EOS) process is run. Please ensure that required delivery margins are there in your account to hold the position.

18. Will I be allowed to take position and square off on the same day in Options product in these contracts?

Yes, you will be allowed to trade intraday in Options product in these contracts till the time they remain enabled which will be under discretion of I-Sec. However, you may be required to keep sufficient delivery margins to safeguard you positions from getting squared off by I-Sec.

19. How will I come to know if my position is ITM and what can I do to safeguard my ITM long option position from being squared off?

You can monitor your position from open position page and compare at the prevailing spot rate of the underlying in the capital market with your contract strike price. Position is ITM in case:

20. What will I-Sec do if I don't take any action on my near month positions of futures and options contracts eligible for physical settlement?

1. How is Options trading different from Futures trading?

Sr. No.	Future	Option
1.	In case of futures, both the buyer and seller are obligated to buy/sell the underlying asset.	In case of options, the buyer enjoys the right and not the obligation to buy or sell the underlying asset.
2.	In case of futures, both the parties i.e. the buyer and the seller face the same level of risk.	In case of options, the buyer faces a limited amount of risk to the extent of the premium paid while the seller i.e. the writer faces unlimited risk since he has to comply with the buyers decision of exercising or allowing the options contract to lapse.
3.	Futures contract prices are affected mainly by the prices of the underlying asset in the cash market.	The prices of options are affected by the prices of the underlying asset, time remaining for expiry of the contract and volatility of the underlying asset.

India VIX is India's first volatility index which is a key measure of market expectations of near-term volatility.

India VIX is computed by NSE based on the order book of NIFTY Options. The best bid-ask quotes of near and next-month NIFTY options contracts which are traded on the F&O segment of NSE are used for computation of India VIX.

India VIX indicates the investor's perception of the market's volatility in the near term i.e. it depicts the expected market volatility over the next 30 calendar days. Higher the India VIX values, higher the expected volatility and vice-versa.

In the year 2013 the India VIX values were in the range of 13 to 32. Since India VIX signifies volatility, the values will be computed upto 4 decimal places as market participants may like to analyse impact on prices due to small changes in volatility.

Volatility implies the variation in price of a financial instrument. Thus when the markets are highly volatile, market tends to move steeply up or down and during this time volatility index tends to rise. Volatility index declines when the markets become less volatile. Volatility indices are sometimes also referred to as the Fear Gauge because as the volatility index rises, one should become careful as the markets can move steeply into any direction. Investors use volatility indices to gauge the market volatility and make their investment decisions.

Volatility Index is different from a market index like NIFTY. NIFTY measures the direction of the market and is computed using the price movement of the underlying stocks whereas India VIX measures the expected volatility and is computed using the order book of the underlying NIFTY options. While Nifty is a number, India VIX is denoted as an annualized percentage.

India VIX derivatives can be used to hedge the risk of market volatility. Participants can use India VIX futures for portfolio diversification and for volatility trading.

India VIX is a volatility Index provided by National Stock Exchange of India (NSE) and hence you will be able to transact only on NSE.

Future contracts enabled for trading in India VIX as underlying, will be displayed on the site when you select contracts either through the 'Place order' link or the Stock list page on www.icicidirect.com.

11. What is the tick size (minimum movement in price) or the price steps that I can take while trading in derivative contracts on India VIX? What is the minimum lot size for India VIX?

For India VIX the tick size (minimum movement in price) or price steps would be Re. 0.25. and minimum lot size is 750. At the time of introduction, Exchange has specified a minimum contract value of Rs. 10 lakhs. This minimum contract value may change depending on the India VIX movement and contract specification changes made by Exchange from time to time.

12. What is the Expiry Day for the derivative contracts traded in India VIX?

For the derivative contracts traded with India VIX as the underlying, the expiry day will be every Tuesday of the Week. In case Tuesday is a trading holiday, the previous trading day shall be the expiry/last trading day. All contracts shall expire at the normal market closing time on the expiry day or such other time as decided by Exchange.

For trading in India VIX you need to enter "INDVIX" when you select contracts through the 'Place order' link.

3 weekly contracts will be enabled under India VIX by exchange and I-Sec at its discretion may enable select contracts out of exchange provided list based on the liquidity criteria decided from time to time. New futures contracts shall be introduced for every week, after the expiry of the relevant previous week's contracts.

For ease of trading the India VIX futures price shall be quoted as expected India VIX index value * 100. If trader wants to buy or sell contracts of India VIX futures at 18.1475, then the price to be quoted shall be Rs.1814.75.

The underlying India VIX has a tick value of 0.0025 and the futures on India VIX has tick value of 0.25. Using the above example change in 1 tick will have following impact.

	India VIX value	India VIX Futures Price	Contract Value
Current Price	18.1325	1814.75	Rs.10,88,850
1 tick change	18.1350	1815.00	Rs.10,89,000
Impact	0.0025	0.25	Rs.150

As it may be seen, change in 1 tick will change value of 1 contract of India VIX futures by Rs.150

Like other equity derivatives contract, India VIX futures shall be marked-to-market (MTM) on a daily basis. The MTM shall be netted along with other equity derivatives contract at the clearing member level. The contracts shall be cash settled.

The daily settlement price of India VIX futures shall be the weighted average price for last 30 minutes of the respective futures contract. If the contract does not trade, then theoretical futures price shall be used for computation. The final settlement price will be the closing value of the India VIX index on the expiry day. The closing value of the India VIX index is the average of the index values for last 30 minutes of trading.

Existing brokerage applicable to Futures transactions and applicable statutory charges would be levied on the India VIX transactions depending on the brokerage plan availed by you.

1. On what amount is Withholding of tax (WHT) applicable on derivative transactions executed through ICICI Securities?

As per order under section 195(2) of Income Tax Act 1961 received from tax authorities, withholding tax (WHT) along with surcharge and cess, if any is applicable as per prevailing tax laws on the cumulative net Profit amount during the month. The cumulative net Profit amount is calculated considering the following amounts:

2. What is the methodology of computing withholding of tax (WHT)? Where can it be seen? Is there a set-off permitted between profit and loss ?

Tax would be withheld for Non Resident Individuals at the applicable Tax rates (along with applicable Surcharge and Cess, if any as per prevailing Tax laws).

WHT is calculated and blocked from the limit available at either of the following events:

3. Is Set-off for WHT permitted between profit and loss in different months?

The Income Tax laws have currently permitted calculation of cumulative net profit or loss and WHT on payment to NRIs at the end of the month. Thereby, the cases would be as follows:

1. What is the Derivatives Registration Fee?

Once you have opened a 3-in-1 account, ICICIdirect provides you with Free Derivatives Registration.

2. What are the brokerage charges for Derivatives - Futures & Options?

The eligible turnover and the brokerage rates for Futures and Options are given in the below table:

Futures		Options
Total Eligible Turnover per month	Brokerage (%)	Total Eligible Premium Value per month	Flat Brokerage per contract lot (Rs.)
Above Rs. 20 Crores	0.03%	Above Rs. 20 lacs	70
Rs.10 Crores to Rs. 20 Crores	0.035%	Rs. 10 lacs to Rs. 20 lacs	75
Rs. 5 Crores to Rs. 10 Crores	0.04%	Rs. 5 lacs to Rs. 10 lacs	85
Less than Rs. 5 Crores	0.05%	Less than Rs. 5 Lac	95

The Futures and Options transactions will be charged at a brokerage rate of 0.05% and Rs.

95/- respectively for the first month. The brokerage rates will be applicable for the next month depending on the turnover done in the current month E.g. For the month of Aug 2008, brokerage rate will be dependent on the turnover done in the month of July 2008 as seen in the table below:

Month	Total Eligible Futures Turnover (Rs. Crore)	Brokerage %	Total Eligible Options Premium value (Rs. Lacs)	Flat Brokerage per contract lot (Rs.)
5th Nov 2008	21.00	0.035%	18.00	70
4th Oct 2008	19.25	0.03%	21.50	85.00
3rd Sept 2008	20.25	0.035%	5.15	75
2nd Aug 2008	11.00	0.04%	12.25	95
1st Jul 2008	5.90	0.05%	4.95	95.00

Note:
1.Service tax ,Securities Transaction Tax, Stamp Duty, Transaction Charges and SEBI Turnover Charges will be charged additionally as per applicable rates.
2.Service tax ,Securities Transaction Tax, Stamp Duty, Transaction Charges and SEBI Turnover Charges are regulatory levies and subject to change from time to time.

1. What is FuturePLUS product on ICICI direct?

"FuturePLUS" is a product under the existing F&O segment. In "FuturePLUS", customers would take buy/sell positions in future contracts with the intention of squaring off the position on the very same day before close of market hours. If, during the day, the price moves in favour (rises in case of a buy position or falls in case of a sell position), then customers would make a profit and vice versa.

2. How is FuturePLUS different from trading in Futures?

To trade in FuturesPLUS, you have to deposit lesser margin as compared to that required for Futures. Thereby you can trade more in FuturePLUS than you can in Futures with the same limit.

3. Why should I trade in FuturePLUS?

With "FuturePLUS" you will be able to leverage more on your trading limit by taking buy/sell positions of higher value than what you are currently able to take in Futures.

1. How can I get started in FuturePLUS?

To start trading in FuturePLUS you can accept the NRI F&O Terms & Conditions online by logging into your trading account.

2. Where will I find the Terms & Conditions for FuturePLUS on logging into my account?

Once you are logged into your trading account with your user id and password, you can go to the F&O section where you will be requested to accept the NRI Futures & Options Terms & Conditions as a onetime activity before placing the first order.

3. When can I start trading in FuturePLUS?

Once you have accepted the NRI Futures & Options Terms & Conditions you can start trading in FuturePLUS.

1. On which exchanges will I be able to buy and sell in FuturePLUS?

ICICIdirect offers you execution capability on the National Stock Exchange of India Ltd. (NSE).

2. Can I place transaction in FuturePLUS through Call Centre?

Yes. Similar to Future & Options, you can also place transactions in FuturePLUS through Call Centre.

3. Which stocks are eligible for FuturePLUS trading? Why is the stock list restricted to specific scrips only?

At present, selected stocks have been enabled for trading in FuturePLUS. Only those stocks which meet the criteria on liquidity and volume as decided by ICICIdirect are considered for FuturePLUS trading. The list of stocks is subject to change from time to time by ICICIdirect.

4. Which contracts under an underlying are enabled for FuturePLUS trading? Why is the contract list restricted to specific contracts only under various underlyings?

ICICIdirect enables selected contracts under various underlyings for trading in the FuturePLUS segment. Only those contracts, which meet the criteria on liquidity and volume are considered for FuturePLUS trading. This is required as there may be a risk of lower liquidity in some contracts as compared to active contracts . As a result, your order may only be partially executed, or may be executed with relatively greater price difference or may not be executed at all. Thereby to safeguard your interest such illiquid contracts are disabled for trading on www.icicidirect.com. The list of contracts is subject to modification by ICICIdirect from time to time.

5. Can an enabled contract be disabled later ?

Yes, it is possible that ICICIdirect disables a contract that was enabled earlier. This could happen due to various reasons like the underlying is disabled as it reaches market wide open position limits, the contract has become illiquid or any other reason to safeguard the interest of investors.

6. Can I square off my position once the contract is disabled?

Yes, you can square off your open positions using the square off link on the Open Positions page when the contract is disabled for trading.

7. Can I modify my square off order placed in disabled contracts or Banned underlyings?

Yes. You may visit the online order book to modify details of your pending square off order under a disabled contract or banned underlying. Please note you will be able to modify the quantity downwards and upwards only upto the net open position considering the square off orders already placed for such position. Example
1) You have a position of 16000 quantity in IFCI which is under banned period and you have two pending square off orders of 8000 each. In this case you will be able to modify all the eligible details for the square off order placed provided quantity for the modified square off order does not exceed 16000 including already placed square off orders against this position. This would mean that quantity cannot be modified upward for either of the pending square off order until the other pending square off order is cancelled.
2) You have a position of 16000 quantity in IFCI which is under banned period and you have one pending square off order of 8000 quantity. You can modify all eligible details of this pending square off order and the quantity can be modified upwards only upto 16000 i.e. to the extent of net position quantity.

8. Where can I view FuturePLUS contracts?

Only enabled contracts will be displayed for trading on the site when you select contracts either through the 'Place order' link or the Stock list page on www.icicidirect.com.

9. How do I place a FuturePLUS Buy / Sell order?

In the "Place Order" page, you need to define the stock code and choose "FuturePLUS" available in the "Product" drop down box. On clicking on "Select contract", the whole list of contracts available for given stock code expiring in different months would be displayed. Depending on your interest, you can select one of the contracts by clicking on buy / sell link. It will take you to the buy / sell page. Values like, your E-Invest account no., exchange, contract details would be auto-populated. You need to define the required quantity, order type i.e. market or limit, order validity period i.e. day, limit price and stop loss trigger price if any.

10. Can I short sell the shares in FuturesPLUS (i.e. sell shares which I do not hold in DP)?

Yes similar to Futures, you can short sell the shares in FuturesPLUS segment. There is no block on your holdings in the demat account.

11. Can I buy in Futures and Sell the same contract in FuturePLUS? How will this be treated?

Yes. In this case the position gets squared off if you buy in Futures and Sell the same quantity in the same contract in FuturePLUS or vice versa. There is no difference between Future and FuturePLUS transactions for Exchange. But at ICICIdirect the two transactions would appear as open positions in Future Open Positions Page and FuturePLUS Open Positions page respectively.

12. How do I differentiate between FuturePLUS orders and Futures Orders in the Order book?

There are different order books for Future and FuturePLUS orders respectively.

13. How much margin will be blocked on placing a FuturePLUS order?

Initially, margin is blocked at the applicable margin percentage of the order value. For market orders, margin is blocked considering the order price as the last traded price of the contract. On execution of the order, the same is suitably adjusted as per the actual execution price of the market order. The initial margin percentage can be checked from the "Stock List" link on the FNO trading page for all underlying securities enabled under FuturesPLUS. You can check the Margin obligations on your FuturesPLUS position from the "Margin Calculator" link on FNO trading page.

14. Is the margin % uniform for all stocks?

No. Margin percentage may differ from stock to stock based on the liquidity and volatility of the respective stock besides the general market conditions. Normally index futures would attract less margin than the stock futures due to being comparatively less volatile in nature. But all FuturesPLUS contracts within the same underlying would attract same margin %.

15. Can margin be changed during the life of contract?

Yes, margin % can be changed during the life of the contract depending on the volatility in the market. It may so happen that you have taken your position and 25% margin is taken for the same. But later on due to the increased volatility in the prices, the margin % is increased to 30%. In that scenario, you will have to allocate additional funds to continue with your open FuturePLUS position. Otherwise it may come in Intra Day Mark to Market (MTM) loop and squared off because of insufficient margin. It is advisable to keep higher allocation to safeguard the open position from such events.

16. Is margin blocked on all FuturePLUS orders?

No. Margin is blocked only on FuturePLUS orders, which result into increased risk exposure. For calculating the margin at order level, value of all buy orders and sell orders (in the same Contract) is arrived at. Margin is levied on the higher of two i.e. if buy orders value is higher than sell order value in the same contract, only buy orders will be margined and vice versa. In other words, margin is levied at the maximum marginable order value in the same contract for FuturesPLUS.
For example, you have placed the following buy and sell orders:

Contract Details	Buy Orders			Sell Orders
	Qty	Rate	Order value	Qty	Rate	Order value
Fut - ACC- 26 Jun 2008	188	760	142880
Group Total(Highest order value to be margined)	188		142880
Fut - ACC- 31 Jul 2008	188	755	141940	188	763	143444
Group Total(Highest order value to be margined)				188		143444

As mentioned above, the higher of buy and sell order value in the same contract is margined. In the above given example, for ACC Jun contract Buy order value is greater since there is no sell order, hence Margin @ 10% would be levied on Rs.142880/-. For the ACC Jul 2008 contract sell order value is greater than buy order value. Hence margin would be levied at specified margin % of 10% on Rs. 143444

17. What happens if buy or sell orders are placed when there is some open position also in the same underlying?

In such case, first the marginable buy/sell order quantity has to be arrived at. Marginable buy order qty is arrived at by deducting the open net sell position at contract level from the buy order quantity at contract level. Similarly marginable sell order qty is arrived at by deducting the open net buy position at contract level from the sell order quantity at contract level. Marginable buy / sell order value is then arrived at by multiplying the respective buy / sell order weighted average price with marginable buy / sell quantity. For order level margin, marginable buy order value and marginable sell order value would be compared and higher of two would be margined. For example, if there was an open buy position of 188 shares in "Fut-ACC-31-Jul-2008".

Contract Details	Buy Position			Sell Orders
	Qty	Rate	Order value	Qty	Rate	Order value
Fut - ACC- 26 Jun 2008	188	755	141940	376	763	286888

Marginable buy and sell order quantity would be 188 and 188 respectively. Marginable buy and sell order value would be Rs. 141940 and Rs. 143444 respectively.

18. How is the Initial margin (IM) on open position calculated?

The same margin % applicable for orders will be levied at position level also. Position level margin is arrived at by applying the IM% on the value of net open position. For example, you have open buy position in Fut - ACC- 26 Jun 2008 for 100 shares @ 150 and IM % for ACC is 25%. In that case, margin at position level would be 15000 * 25% = 3750/-.

19. When do you release the margins blocked on FuturePLUS positions?

The margin is released after the FuturePLUS positions are squared off. The margin released is net off Margin blocked on Positions +/- Profit/Loss incurred on Square off and applicable taxes.

20. What is meant by 'squaring off a position'? What is a cover order?

Squaring off a position means closing out your FuturePLUS position. For example, if you have FuturePLUS buy position of 500 Reliance expiring on 26th June 2008, squaring off this position would mean taking sell position in 500 Reliance expiring on 26th June 2008. The order placed for squaring off an open position is called a cover order.

21. How do I place a square off (Cover) order in FuturePLUS to cover my open positions?

You can place the square off order either through the normal buy/sell page or through a hyper link "Square off" on the "Open Position" page for FuturePLUS product.

22. I have placed the square off order. Can I modify that order?

Yes. You can modify square off order if not executed.

23. Is there any impact on the limit, on execution of a buy/sell order in FuturePLUS?

If it is an execution of a fresh order (i.e. an order which would result into building up an open position), the margin blocked gets appropriately adjusted for the difference, if any, in the order price at which the margin was blocked and the execution price. Accordingly the limits are adjusted for differential margin. If it is an execution of a cover order (order which would result into square off of an existing open position), the following impact would be factored into the limits:
a) Release of margin blocked on the open position so squared up.
b) Effect of profit & loss on the square off of such a transaction.
c) Effect of withholding tax due to profit/loss.

24. How is the profit and loss recognized on execution of square up (cover) orders?

Execution price of cover order is compared against the weighted average price at which the position was built up as shown in the "Open Positions for FuturePLUS" and profit/loss is calculated therefrom. For example,
say you have a FuturePLUS position - 'Buy 200 Reliance Shares' in contract Futures - RELIND- 26 Jun 2008 at an average price of Rs. 300 per share created through the execution of two orders - 'Buy 100 @ Rs. 310 per share' and 'Buy 100 @ Rs. 290 per share'. If you square off a part of the position by selling 50 Reliance Shares @ Rs. 305 per share, the profit on such square off would be calculated as:
Quantity squared off * (Square off trade price - Weighted Average price of the position) 50 * (305 - 300) = 250 Profit or Loss for all your trading transactions can be checked from the "Portfolio Details" link on the FNO trading page for FuturePLUS product.

25. How do I see my open positions in FuturePLUS?

You can view all open FuturePLUS positions by clicking on "Open Positions" and thereafter selecting "FuturePLUS" under the product dropdown. The FuturePLUS positions table gives details such as underlying, contract details, buy/sell position, open qty, cover order qty, base price, current market price, total margin blocked on the open position and order level margin at underlying-group level.

26. What is meant by 'Convert to Future?

'Convert to Future' (CTF) is an added feature provided under FuturePLUS product where one can convert his existing position under a contract in FuturePLUS to Future position of the same contract within the stipulated time prescribed by I-Sec. You will find the link of 'Convert to Future' in open positions page against each position under a contract in the column of 'Actions'. Once you choose to convert the existing open position to Future, following remark will appear "You are requesting to convert FuturePLUS position to Future".

27. Can I choose not to square off a FuturePLUS position on the same trading day?

FuturePLUS is an intraday product wherein any position taken needs to be squared off on the same trading day or Convert to Future (CTF) till the end of the day by the customer itself. If customer doesn't place square off or does CTF for his position by the end of the day before the stipulated time, then following possibilities may arise, viz:
1) ICICI Securities may run End of settlement Square off process which will square off the open FuturePLUS position generally 3:15 pm onwards on best effort basis. However, I-Sec reserves the right to change the square off timing , if required, especially during volatile days.
OR
2) The FuturePLUS position may be compulsorily converted to future position by the system at the end of the day.

28. How do I convert my FuturePLUS position into a Future position?

You will find the link of 'Convert to Future' in the 'Actions' column of FuturePLUS open positions page against each position under a contract. Once you choose to convert the existing FuturePLUS open position to Future position, a remark will appear stating "You are requesting to convert FuturePLUS position to Future".

29. Can I convert my position in Future into FuturePLUS Position?

Yes. You can convert your Future open position to FuturePLUS position.

30. Can I convert part of the open position under a contract to Future position?

Yes. A part quantity out of the FuturePLUS position quantity under a contract can be converted to Futures position provided sufficient margin is available.

31. Can I convert pending order / partly executed pending order from FuturePLUS to Futures order?

No. The orders placed in FuturePLUS cannot be converted to Futures orders. Only full open position under a contract is allowed to be converted from FuturePLUS to Future Position provided sufficient margin is available

32. How does 'Conversion to Future' impact limits?

When FuturePLUS position is converted to a Futures position, the additional margin amount is required as applicable for Futures positions. The additional margin to be blocked on conversion would be the difference of the required margin for Futures and the already blocked margin for FuturePLUS position. The limit would be accordingly reduced with the differential amount of margin requirement. On conversion of FuturePLUS position to Future position the condition of Available Margin(AM)* and Minimum Margin(MM)* for the proposed Future position would be checked before blocking the additional margin amount required as follows:

1. If AM>=MM,of proposed Future position then additional margin required will be,
Initial Margin % required for Future position on Base price i.e.weighted average price of existing FuturePLUS position - Blocked Margin for existing FuturePLUS position.

2. If AM < MM, of proposed Future position then additional margin required will be,
Initial Margin required for future position on Base price i.e.weighted average price of existing FuturePLUS position - Available Margin for existing FuturePLUS position.

* Please refer below FAQs to know Available Margin and Minimum Margin

For both the above scenarios, if current limit is more than or equal to the additional margin required, only then you would be allowed to convert your existing FuturePLUS position to Future position
For, example, consider the following scenario

Particulars	Contract	Trade Flow	Qty	Base Price	IM%
FuturePLUS	FUT-RELIND-26-April-2012	Buy	250	1000	6.00%

Current limit available = Rs.50000/-

a) Margin blocked on taking Future PLUS position= 250*1000*6% = 15000.
    Current limit available after the position taken=50000-15000=35000
b) On Convert To Future, required Initial Margin for Futures = 250*1000*11% = 27500

1. If on conversion Available Margin is more than or equal to Minimum Margin for Future position.
    For the above mentioned scenario,in this case 1. CMP of the contract is considered as Rs.990 at the time of conversion

The calculations will be done for the proposed Future Position and following values will be checked:
    a. Required Initial Margin for proposed Futures position on Base Price = 250*1000*11% = 27500
    b. Required Minimum Margin for proposed Futures position = 250*1000*8% = 20000
    c. MTM Loss on existing FuturePLUS position = (990-1000)*250 = -2500
    d. Available Margin = 27500-2500 = 25000

In this case, Available Margin > Minimum Margin i.e. c > b,

Hence ,On "Convert to Future",
Additional Margin required = Initial Margin required for Future position - Blocked Margin for existing FuturePLUS position taken
= 27500 - 15000 (FuturePlus Margin Blocked)
= 12500 .
Thus, on "Convert to Future", Additional margin of Rs.12500 would be required. If current limit is not available to block the additional margin of Rs. 12500 then you will not be allowed to convert your FuturePLUS position to Futures position.

2. If on conversion Available Margin is less than Minimum Margin.

For the above mentioned scenario, in this case 2. CMP of the contract is considered as Rs.950 at the time of conversion

The calculations will be done for the proposed Future Position and following values will be checked::

    a. Required Initial Margin for proposed Futures position on Base price= 250*1000*11% = 27500
    b. Required Minimum Margin for proposed Futures position = 250*1000*8% = 20000
    c. MTM Loss = (950-1000)*250 = -12500
    d. Available Margin of proposed Future Position= 27500-12500 = 15000

In this case proposed Future Positions, Available Margin < Minimum Margin,

FuturePLUS Available Margin = 15000-12500 = 2500.

Hence ,On "Convert to Future",
Additional Margin required = Initial Margin required for Future position - Available Margin for existing FuturePLUS position.
= 27500 - 2500 (FuturePlus Available Margin)
= 25000

Thus, on "Convert to Future", Additional margin of Rs.25000 would be required. If current limit is not available to block the additional margin of Rs.25000 then you will not be allowed to convert your FuturePLUS position.

33. What is Intra -Day Mark to Market? How does ICICIdirect call for additional margin during the Intra-day MTM process?

Once the available margin falls below the minimum margin, ICICIdirect may at its discretion at a suitable time run the Intra-day Mark to Market process. Through this process the system would block additional margin required out of the limits available, if any. In case there are no limits available the Intra-day Mark to Market process would square off the positions if the available margin falls below the minimum margin.

34. What is meant by Minimum Margin?

Minimum Margin is the margin amount, you need to keep available with us all the time for your FuturePLUS positions. Once the available margin with us goes below the minimum required minimum margin, ICICIdirect system would block additional margin required from the limit available.

35. How do you calculate Minimum Margin for FuturePLUS?

Minimum Margin is calculated by taking MM % instead of IM% displayed on site for FuturePLUS.

36. How do you calculate available margin?

Available margin is calculated by deducting MTM loss from margin blocked at position level.

37. How do you calculate additional margin required for FuturePLUS positions 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 FuturePLUS position(s) and the FuturePLUS IM % . 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 100 shares of Futures- ACC-26-Jun-2008 at Rs.150 and FuturePLUS IM is 20% and minimum margin is 10%. You would be having a margin of Rs.3000 blocked on this position. The current market price is now say Rs.130. This means the effective available margin Rs. 1000/- which is less than the minimum margin of Rs 1500/- and hence additional margin to be called in for. Additional margin to be calculated as follows:
(a) Margin available
Rs.3000
(b) Less : MTM Loss
(150-130)*100
Rs.2000
(c) Effective available margin
(a-b)
Rs.1000
(d) Minimum Margin
100*150*10%
Rs.1500
(e) Re-calculated margin
100*130*20%
Rs. 2600
a. Additional margin Call
(e-c)
Rs. 1600

38. How do I check if there is a margin shortfall on any open position?

If available margin on any open position has fallen below minimum margin required on that position, then available margin amount on such position would be highlighted in red colour on the Open Positions page indicating that the position may be squared off in the Intraday MTM process, if additional margin is not allocated. This shall be considered as a margin call on that position.You are advised to allocate additional margin immediately to meet the margin shortfall else such position may be squared off by I-Sec.

Further, please note that the Open Positions page does not refresh automatically. You need to frequently refresh the page by clicking on 'View' button to view latest details.

39. What happens if limits are not sufficient to meet the additional margin requirements?

Our risk monitoring system/team may, at its discretion place a square off order at market rate to close the open FuturePLUS position. However, before placing the square off order all pending FuturePLUS orders in that underlying-group (contracts having same underlying) are cancelled by our risk monitoring system/team. Following are the sequence of actions taken by our risk monitoring system/team.
1. Cancel all pending FuturePLUS orders in that underlying-group and see if limits are now sufficient to provide for additional required margin. If yes, block the additional margin, else go to step (2).
2. Square off in Lot size of the near month contract in that underlying and group and see if limits are now sufficient to provide for additional required margin. If yes, block the additional margin, else go to step (3).
3. Square off in Lot size of the next month contract in that underlying and group and see if limits are now sufficient to provide for additional required margin. If yes, block the additional margin, else carry on the process in the same way till all the positions in that underlying and group is totally squared off.
However, it is clarified that if, for any reason, the risk monitoring system/team does not square off the open position even in a situation where the limits are not sufficient to meet additional margin requirements, it is ultimately the customer's responsibility to square off the open position on his own to limit his losses. Once a position has been created by the customer, he is solely responsible for the profits or losses emanating from such position. ICICI Securities Ltd is under no obligation to compulsorily square off any open position and in no circumstances, can be held responsible for not squaring off open positions or for resulting losses therefrom.

40. What happens if the limit is insufficient to meet a margin call but there are unallocated clear funds available in the bank account?

While making an online check for available additional margin, our system would restrict itself only to the extent of trading limit and would not absorb any amount out of un-allocated funds so as to keep your normal banking operations undisturbed. It is, therefore, advisable to have adequate surplus funds allocated for trading when you have open positions. However, ICICI Securities reserves the right to block and/or debit even unallocated clear funds available in the bank account.

41. Can I do anything to safeguard the positions from being squared off during the Intra-day MTM process?

Yes, you can always allocate additional margin, on any open position. Since the Intraday MTM process is triggered when minimum margin required is more than available margin, having adequate margins can avoid calls for any additional margin in case the market turns unfavorably volatile with respect to your position. You can add margin to your position by clicking on "Add Margin" on the "Open Position - FuturesPLUS" page by specifying the margin amount to be allocated.
Please note there is also an additional tracking tool provided to track your positions on the basis of Trigger Price and LTP. For more details you can refer below FAQs.

42. What is the Trigger price displayed on Open Position page for FuturePLUS product?

Trigger price is just an additional tracking tool provided to track your positions to ascertain at what price level the position may get squared off on the basis of Trigger Price and LTP. However, you can continue to track your positions for intraday mark to market process on the basis of Available Margin and Minimum Margin accordingly you can allocate additional funds if Availabe Margin amount is displayed in red colour.
Trigger price is a price which indicates that your position may get squared off if LTP breaches the indicated trigger price.

No, trigger price will not be calculated immediately on order placement. Trigger Price gets calculated only once your Buy or Sell order in FuturePLUS product results into an executed trade and becomes an open position.

44. Will Tigger Price be calculated for NON SPAN as well as SPAN based margining?

Trigger Price will be calculated for NON SPAN as well as SPAN based margining in Future PLUS product.

a. Trigger Price is calculated as follows in case of Buy positions:

Example: If you have Future PLUS buy position of 500 qty of Reliance at Rs 900 expiring on 26th December 2015 at IM of 11% and MM of 8%.
Trigger Price calculation for Future PLUS Buy Positions: WAP on Underlying level-(( Margin on Positions - ( WAP on Underlying Level * Open Pos Qty * Min margin percentage)))/ Open Position Quantity).
900-(49500-(900*500*8/100 ))/500) = 873

b. Trigger Price is calculated as follows in case of Sell positions:

Example: If you have Future PLUS Sell position of 1600 qty of ITC Limited at Rs 355 expiring on 26th December 2015 at IM of 14% and MM of 10%.
Trigger Price calculation for Future PLUS Sell Positions: WAP on Underlying level+(( Margin on Positions - ( WAP on Underlying Level * Open Pos Qty * Min margin percentage)) )/ Open Position Quantity).
355+(79520-(355*1600*10/100 ))/1600) = 369.20

Please note Trigger Price will be rounded up to the tick size for Buy positions and rounded down to the Tick size for sell positions.

46. Will Trigger Price be recalculated on converting Futures positions to Future PLUS?

Yes. Trigger Price will be recalculated on converting Futures position to Future PLUS.

47. In case of profit on a FuturePLUS position or where the Available Margin is in excess of the Margin Required, can I reduce the margin against the position to increase my limit?

No, any release of margin in excess of required margin (in profitable position) is possible on square off your open position completely.

48. Is there EOD MTM (End of Day - Mark To Market) process in case of FuturePLUS

No. FuturePLUS being an intra-day product (i.e. the positions are squared off on the same trading day) there is no requirement of EOD MTM. The FuturePLUS positions converted to futures will go through all Futures EOD processes including EOD MTM.

49. Is there any "no-delivery period" concept in FuturePLUS?

Similar to Futures there is no "no-delivery period" concept in FuturePLUS. Even if stock is in no-delivery period, trading in futures will be as usual. There will not be any no-delivery period as it is in equity market

50. Is it compulsory to square off the open FuturePLUS position within the same trading day?

Yes. It is compulsory to square off all your open FuturePLUS positions (net of what has already been converted to Future) within the same trading day.

51. What is the stipulated time limit up to which the FuturePLUS positions need to be compulsorily squared off? What will happen if the FuturePLUS positions are not squared off within the stipulated time?

The stipulated time for compulsory square off will be displayed on the FuturePLUS open positions page of our site everyday. After the stipulated time, if your FuturePLUS positions remain open, the risk monitoring system will cancel all pending orders and square off the open FuturePLUS positions through the End of settlement Square off process on random basis anytime after the stipulated period on a best effort basis. The End of settlement Square off process would be run solely at the discretion of ISEC, we may also compulsorily convert FuturePLUS open position (if any) at the end of the day to Future positions and all the end of day obligations under Futures would be required to be fulfilled by you in cash for such converted positions.

52. Can I do convert my FuturePLUS position to Future position instead of squaring up the position before the time limit expires?

Yes. You can do so at any time before the stipulated time limit.

53. What happens if for some reason a FuturePLUS position remains open at the end of the day?

ICICIdirect's risk monitoring system would square off the positions but the onus lies on you to close out all open positions. If for some reason, the position remains open at the end of the day,it would be converted to futures and you will have to make all the necessary arrangements for funds for the daily settlement of the position and shall be fully liable for the consequences of the same.

54. Can an underlying be disabled from trading during the day?

Yes, In case the market wide open position for an underlying reaches a particular percentage specified by exchange, the trading in that particular underlying is disabled by the exchanges. Accordingly ISEC would also disable the trading in that particular underlying during market hours. Further ISEC at it sole discretion may disable an underlying or any contract.

55. Can I square off the open positions in the disabled underlying?

Yes. You can square off the open positions in the disabled underlying through 'Square off' link available on open positions page.

56. Can the FuturePLUS product be disabled?

Yes. ICICIdirect may disable the product depending upon the market conditions.

57. Is there any hedging benefit between Futures and Options?

No. Currently ICICIdirect is not offering any hedging benefit between Futures and Options.

58. Can I do Shares as Margin for FuturePLUS?

No. Shares as Margin facility is not available to NRI.

59. When do orders in Futures Plus get freezed?

Orders in Futures may get freezed at the exchange end. There are two types of Freeze orders specified by exchange:

60. Where can I see that my order is freezed?

The orders in F&O that get freezed appear with a blank status in the order book and the details of freeze can be seen in the order log by clicking on the order reference hyperlink.

61. What should I do in case an order is Freezed?

If your order gets freezed, you can call up the call centre number and provide the required details about the order. ICICI Securities will inform the exchange about the details of your freezed order. Exchange may at its discretion release or reject the request for releasing Freezed orders. Till the order is unfrozen, the limits are blocked to the extent of order which got frozen.

62. What is Square Off all positions at Market?

Square Off all positions at Market feature will facilitate you to square off all open positions across all underlyings of a product at market with a few clicks. This link is available on open positions page for Future, FuturePLUS and Option products. There shall not be any pending order(s) in any of the contract of a product for using this feature. This feature cannot be used for selected positions and therefore you are advised to keep in mind the liquidity and impact cost in the open position contracts while using this feature. There can be huge differences between bid and offer prices in certain contracts due to less liquidity and squaring off those positions at market may fetch you unfavorable execution price.

1. What are brokerage charges for FuturePLUS?

The brokerage charge structure applicable for FuturePLUS is the same as prevailing for Futures.

2. Is there any additional brokerage charged on FuturePLUS positions converted to Future?

The brokerage charge structure applicable for FuturePLUS is the same as prevailing for Futures.
To view the brokerage slab for Futures & Options, please click here to refer FAQs.

1. What is FuturePLUS Stop Loss (i.e. With Cover SLTP Order)?

FuturePLUS Stop Loss (i.e. With Cover SLTP Order) is an intraday product having an order placement feature wherein you place two orders simultaneously wherein Fresh order will be a market/Limit order and with the second order you limit your loss on every position by necessarily placing a cover order specifying the Stop Loss Trigger Price (SLTP) and a Limit Price.
Since the FuturePLUS Stop Loss position gives a clear view of maximum downside involved in a particular position, ICICI Securities Limited (I-Sec) would block margin required for FuturePLUS Stop Loss product or maximum loss on that position, whichever is higher. ICICI Securities at its discretion may charge higher margin if it deems appropriate.

2. What is fresh order?

The order which is placed for creating the position is called fresh order. The fresh order can be either a Market or a Limit order.

3. Can I place a limit fresh order?

Yes, fresh order can be placed as a Limit order.

4. What is a cover order?

The fresh order as defined above on execution creates an open position in FuturePLUS Stop Loss product. The cover order is an opposite order taken by you to close your open position. Assuming you have taken a buy position, your cover order will naturally be a sell order. The cover order will compulsorily have to be a Cover SLTP (Stop Loss) order.

5. Can I place a cover profit order?

No, currently this feature is not available in FuturePLUS Stop Loss product.

6. Can I place Stop Loss order after the Fresh position is taken?

No. You will need to compulsorily place Stop Loss order along with your Fresh order. In this product you will not be allowed to place the Stop Loss order after placing the fresh order.

7. Can I place FuturePLUS Stop Loss orders in all contracts?

Only select contracts have been enabled for trading under the FuturePLUS Stop Loss product. Only those contracts, which meet the criteria on liquidity and volume have been enabled for trading under this product.
I-Sec reserves the right to select the contracts for FuturePLUS Stop Loss product and may, at its sole discretion, include or exclude any contract for trading in this product without any prior intimation.

8. From where do I place FuturePLUS Stop Loss orders ?

You can place orders in FuturePLUS Stop Loss product by visiting the existing 'Place Order' with product type as 'FuturePLUS Stop Loss' under the F&O trading section. In case this selection is done then both Fresh and Cover SLTP orders can be placed simultaneously from the same page.

9. What is a Cover Stop Loss order?

A Cover Stop loss order allows you to place an order which is sent to the Exchange alongwith fresh order but gets activated and is triggered only when the market price of the relevant underlying reaches or crosses a trigger price specified by youin the form of 'Stop Loss Trigger Price'. When a Stop Loss Trigger Price (SLTP) is specified in a limit order, the order remains passive (i.e. not eligible for execution) till the price of the underlying crosses the specified SLTP. Once the last traded price of the underlying reaches or surpasses the SLTP, the order becomes activated (i.e. eligible for execution at the exchange) and once triggered behaves like a normal limit order. It is used as a tool to limit the loss on a position.

Examples:
Cover Stop Loss Buy Order
'A' takes a short (sell) position in underlying NIFTY at Rs. 6000 in expectation that the price will fall. However, in the event the price rises above his sell price 'A' would like to limit his losses. 'A' may place a limit buy order specifying a Stop loss trigger price of Rs.6050 and a limit price of Rs. 6055. The stop loss trigger price (SLTP) has to be between the last traded price/fresh sell limit price (as the case may be) and the buy limit price. Once the market price of underlying NIFTY touches or crosses the SLTP i.e. Rs. 6050, the order gets converted to a limit buy order at Rs. 6055.

Cover Stop Loss Sell Order
'A' takes a long (buy) position in underlying NIFTY at Rs. 6000 in expectation that the price will rise. However, in the event the price falls, 'A' would like to limit his losses. 'A' may place a limit sell order specifying a Stop loss trigger price of Rs. 5950 and a limit price of Rs. 5945. The stop loss trigger price has to be between the sell limit price and the last traded price/ fresh buy limit price (as the case may be) at the time of placing the stop loss order. Once the last traded price touches or crosses Rs. 5950, the order gets converted into a limit sell order at Rs. 5945.

Important
Please note that in a fresh buy order, the Sell SLTP should be a price lower than the buy limit price (in case of fresh buy limit order) and last traded price( in case of both market and limit order). An SLTP cannot be placed for a price that has already been surpassed by the market when the SLTP is being placed. Similarly, in case of fresh sell order, the buy SLTP should be greater than the sell limit price of fresh order (in case of Sell fresh limit Order) and last traded price(in case of both market and limit order).

10. What are the details required to be given to place a fresh order?

Following details should be provided to place a fresh order;

11. Are the fresh orders and cover SLTP orders to be placed together?

Yes, the fresh and cover orders under FuturePLUS Stop Loss product are to be placed together.

12. Should the quantity of fresh and cover SLTP order be the same?

Yes, the quantity will be same for fresh and cover SLTP order.

13. What are the details for a cover SLTP order?

The details for a cover SLTP order are as follows:

14. Can I cancel only cover SLTP order?

No, only cover SLTP order cannot be cancelled. However only in cases where your fresh order gets cancelled/rejected then you shall be given a link/tool to Cancel your cover SLTP order from Order Book.

15. Can I modify the fresh order?

Yes, you can modify order type and Limit price of your fresh order from order book if your fresh order is pending for execution or partially executed and cover order is also pending for execution. You can modify the fresh limit order to a Market order.

16. Can I modify the cover SLTP order?

Yes, you can modify the price of your cover SLTP order subject to the Trigger price conditions being fulfilled. You can even modify the Cover SLTP order to a Market order provided your fresh order is full executed.

Assume you take a buy position for the fresh order of 1000 quantity at current market price of 100/-. Simultaneously, you also place the sell (cover SLTP) order of 1000 quantity at Limit price 90/- and SLTP 95/-. The above trigger condition is defined with a view to curtail losses. If subsequently the current market price shoots up to 110/-. You can modify the order as below Limit price 103/- SLTP 108/- (i.e. SLTP can be placed upto 110) or alternatively you can modify the order to market and book profits.

17. What is Reorder functionality in FuturePlus Stop Loss?

Reorder functionality will help you in quickly recreating similar FuturePlus Stop Loss orders using the details of the previously placed orders. Please note, default quantity displayed at the time of placing reorder against your FuturePlus Stop Loss orders/open position will be the quantity entered at the time of original order placement. However, if you wish to change the quantity or use Quantity Calculator feature then you may please edit your order before placing.

18. What is the quantity that can be submitted for fresh orders?

The maximum quantity that can be submitted for fresh orders is the total of best 5 Bid/Offer quantities that is available in the best bids and offers for all underlyings except for NIFTY. If the quantity that you input is greater than the quantity available in the best 5 bids and offers then the order will not go through for any underlying except NIFTY. For NIFTY, the maximum quantity allowed to place is 5000 and on order placement system will allow to place orders upto 5000 quantity irrespective of availability of best 5 Bid/Offer quantities.

For fresh limit order, the maximum quantity that can be submitted for fresh orders is generally the maximum quantity allowed for order placement by the exchange. However I-Sec reserves the right to modify this permissible maximum quantity based on the risk factors.

Assuming that you want to place a buy order in FUT-NATMIN-26-Feb-2014 for 5000 quantity @ 100, and the first 5 offer quantity available for the buy order are as under:

Offer Qty.	Offer Price
1500	96
1000	97
500	97.5
500	98
100	98.5

In the above scenario, the first 5 Offer quantity available is 3600 and since the buy order quantity placed is 5000 which exceeds the best 5 offer quantity, it would be rejected by the system in case of fresh market order. Similar would be the case for Fresh Sell market order, wherein if the total sell qty is greater than the sum of first 5 Bid quantity available then it would be rejected by the system. The maximum order qty for fresh market order to be placed should be equal to the first 5 best bid/offer quantity available at that point of time.

In case of NIFTY,assuming that you want to place a buy order in FUT-NIFTY-26-Feb-2014 for 5000 quantity , and the first 5 best offer quantity available for the buy order are as under:

Best 5 bids		Best 5 offers
Qty	Price	Qty	Price
150	6049	150	6045
150	6048	150	6046
300	6047	300	6047
100	6046	150	6048
100	6045	100	6049

In the above scenario, the first 5 best Offer quantity available is 850 and the buy order quantity placed is 5000 which exceeds the best 5 best offer quantity, still the system will allow to place order for 5000 quantity for NIFTY as it does not check the best 5 bid/offer since sufficient liquidity is generally available in case of NIFTY. Similar would be the case for Sell order, wherein if the total sell qty is greater than the sum of first 5 best bid quantity available still system will allow to place order for 5000 quantity.

However if you are placing a fresh limit order of 5000 quantity then system shall not restrict order placement until the quantity entered is higher than the maximum quantity allowed for the stock.

19. What will be the price at which margin for an order will be calculated?

For fresh NIFTY orders having quantity higher than Best 5 bids/offers quantity but upto 5000 quantity, the price considered would be the 5th best bid/offer price for calculating the margin requirement. For example, if the following offers are available in the best 5 bids and offers and the client places a Buy order in NIFTY for quantity of 5000:

Best 5 bids		Best 5 offers
Qty	Price	Qty	Price
150	6049	150	6045
150	6048	150	6046
300	6047	300	6047
100	6046	150	6048
100	6045	100	6049

The price considered is the 5th best offer price of Rs. 6049 for the Buy order quantity of 5000 and would be used for calculating the Margin requirement for this order.

For all other underlyings and NIFTY orders less than 5000 quantity for fresh market orders the price would be calculated as the weighted average price of the best 5 bids and offers available upto the order quantity for calculating the margin requirement. If the following offers are available in the best 5 bids and offers and the client places a Buy order for quantity of 600.

Best 5 bids		Best 5 offers
Qty	Price	Qty	Price
150	8	150	11
150	5.5	150	11.5
300	5	300	12
0	0	150	13
0	0	0	0

Calculation of Buy price

Qty	Price	Value
150	11	1,650
150	11.5	1,725
300	12	3,600
600	-	6975

Weighted average price would be 11.63 = (6,975/600) which would be used for calculating the margin requirement for this order.

For fresh limit order, system shall take the fresh order limit price instead of weighted average price of the best 5 bids and offers for calculation of margin requirement.

20. How does the concept of FuturePLUS Stop Loss work?

In case of Fresh Buy:

a) Current market Price rises – Position is making a profit You can choose to modify the sell cover SLTP order to a market order to immediately book profits at market price.
b) Current market price falls - Position is making a loss: Once the current market price starts rising and reaches Sell cover SLTP price, the cover SLTP order would be triggered to a limit order. The cover SLTP order would get executed at the best prices available up to the SLTP limit price.

In case of Fresh Sell:

a) Current market price rises - Position is making a loss: Once the current market price starts rising and reaches buy cover SLTP price, the cover SLTP order would be triggered to a limit order. The cover SLTP order would get executed at the best prices available up to the SLTP limit price.
b) Current market price falls - Position is making a profit: You can choose to modify the buy cover SLTP order to a market order to immediately book profits at market price.

21. What is the margin that will be charged on placement of FuturePLUS Stop Loss order?

The margin in case of FuturePLUS Stop Loss will be higher of two margins stated below:

1. Maximum loss considering difference between the Fresh order price & cover order limit price plus an additional margin at the SLTP margin % specified, if any
2. Margin computed as per the Margin % specified for the underlying under this product.
You may visit FuturePLUS Stop Loss Stock List page to view prescribed margins for FuturePLUS Stop Loss product which are specified at each underlying level and please note these margins are likely to be changed on daily basis.

Formula:
1) Fresh Buy Market order: Maximum of [{(Weighted average price of fresh order - limit price of cover SLTP order) * Quantity} + {Weighted average price of fresh order * Quantity * SLTP margin %, if any, for the underlying}, {Weighted average price of fresh order * Quantity * Margin %}]
Please note, in case fresh sell market order the first part of the formula will change where loss will be computed as Limit price of cover SLTP order - Weighted average price of fresh order, rest of the formula will remain the same.

2) Fresh Buy Limit Order: Maximum of [{(Limit price of fresh order - limit price of cover SLTP order) * Quantity} + {Limit price of fresh order * Quantity * SLTP margin %, if any, for the stock} , {Limit price of fresh order * Quantity * Margin %}]

Please note, in case fresh sell limit order the first part of the formula will change where loss will be computed as Limit price of cover SLTP order – Limit Price if fresh order, rest of the formula will remain the same.
Margin is blocked as per the above formula on order placement and adjusted further based on the actual execution with the Trade prices.

For Example, 1: 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/-. The Additional margin% (or referred to as SLTP margin percentage) for the scrip is either 0 or 10%. The Margin percentage for the scrip is 15%. In this case margin will blocked as below:

(A) In case the additional margin/SLTP Margin percentage is 0%:

Max [{(100-90)*1000) + (100*1000*0%)}, {100*1000*15%}]

= Max[10000, 15000]

= Rs 15000/-

(B) In case the additional margin/SLTP margin percentage is 10%:

Max [{(100-90)*1000) + (100*1000*10%)}, {100*1000*15%}

= Max [20000,15000]

= Rs. 20000/-

For Example, 2: Limit Order - In the above example if Fresh Limit order is place at 99 then margin would be computed as below:

(A) In case the additional margin/SLTP Margin percentage is 0%:

Max [{(99-90)*1000) + (99*1000*0%)}, {99*1000*15%}]

= Max[9000, 14850]

= Rs 14850/-

(B) In case the additional margin/SLTP margin percentage is 10%:

Max [{(99-90)*1000) + (99*1000*10%)}, {99*1000*15%}]

= Max[18900, 14850]

= Rs 18900/-

22. Can I place market order with Quantity more than Best 5 Bids/Offers?

No, your FuturePLUS Stop Loss fresh market order are not allowed beyond best 5 Bid/Offer quantity, However you are allowed upto 5000 quantity in NIFTY, if the best 5 bid offer total quantity is less than 5000.
In this case margin for NIFTY fresh buy Market order is calculated as Maximum of [{(5th best bid/offer price for fresh order - limit price of cover SLTP order) * Quantity} + { 5th best bid/offer price for fresh order * Quantity * SLTP margin %} , {5th best bid/offer price for fresh order * Quantity* Margin % }]

Please note, in case fresh sell market order the first part of the formula will change where loss will be computed as Limit price of cover SLTP order – 5th best bid/offer price for fresh order, rest of the formula will remain the same.
Assume you take a buy position for the fresh order of 4950 quantity at 5th best offer price of 6000/-. Simultaneously you also place the Sell (cover SLTP order) of 4950 quantity as Limit price 5990/- and SLTP 5995/-. The SLTP margin percentage for the NIFTY is either 0 or 1% and Margin % is 0.5%.

In case the additional margin/SLTP margin percentage is 0% , margin computed will be as below:
Max [{(6000-5990)*4950) + (6000*4950*0%)}, {6000*4950*0.5%}

= Max [49500,148500]

= Rs. 148500/-

In case the additional margin/SLTP margin percentage is 1% , margin computed will be as below:
Max [{(6000-5990)*4950) + (6000*4950*1%)}, {6000*4950*0.5%}

= Max [346500,148500]

= Rs. 346500/-

23. Would the margin be recalculated when the order gets executed?

Yes, at the time of order placement the Limit Price or current market price or weighted average price upto the best five bids or offers as applicable at that point of time is considered. It may happen that execution happens at a different price than the one at which limits have been blocked. Thereby, margin is recalculated taking into consideration the actual execution price of the order.

24. Would the margin be recalculated at the time of modification?

Yes, it is recalculated and excess amount if any will be released or additional margin needed will be blocked if you change the limit price of your fresh order or cover SLTP order.

(A) In the above example where additional/SLTP margin % is 10% & Margin% is 15%, if you modify the SLTP to 98/- and limit price to 92/- The margin amount would be recalculated as:

Max [{(100-92) *1000) + (100*1000*10%)}, {100*1000*15%}]

= Max [18000, 15000]

= Rs.18000

The excess amount of 900/- would be released and added in your limit.

(B) In the above example where additional margin/SLTP margin % is 10% and Margin % value is 15%., if you modify the limit price of your cover SLTP order to 88/- margin amount would be recalculated as

Max [{(100-88) *1000) + (100*1000*10%)}, {100*1000*15%}]

= Max [22000, 15000]

= 22000

Additional amount of 4000/- would be blocked. If limits are insufficient then you will be unable to modify the order.

25. Is the SLTP minimum difference % between SLTP and Limit price of Cover SLTP order different for different underlying?

Yes, I-Sec would define different SLTP minimum difference percentage for different underlying depending upon the volatility and market conditions of the stock.

26. What is the difference between limit price and SLTP price that can be specified for a Cover SLTP Order?

Depending on the stock volatility and market situation, I-Sec Ltd would specify the SLTP minimum difference % between limit price and SLTP of your cover SLTP order that can be maintained on order placement and modification for a particular stock. This percentage could be revised by I-Sec even during the day. Existing orders would be unaffected by the revision but however if the orders are modified the revised percentage would apply.

The value for Limit Price would automatically appear in the Limit Price field based on the minimum difference % for the stock between the Limit Price compared to the Stop Loss Trigger Price (SLTP).
Example: A 1% difference has to be maintained between the limit price and SLTP for cover SLTP order for NIFTY.
You have taken a buy position (fresh order) for 100 shares in NIFTY at Current price of 6005/-. You specify the sell order (Cover SLTP order) for 100 shares in NIFTY at SLTP of 6000/-. Since this is a sell cover SLTP order the limit price would be lower than the SLTP. Limit price of Rs 5940/- = (6000-(6000*1%)) will automatically appear in the Limit Price field.

27. Where can I see the SLTP minimum difference % for a particular underlying?

You can view the SLTP minimum difference % between SLTP and Limit price of your cover order for various underlying by visiting the Stock List link under the F&O trading section of www.icicidirect.com

28. If the Cover SLTP order gets rejected by Exchange, will I be able to re-enter the Cover SLTP Order?

Yes, you would be able to place Cover SLTP Order from the Open Positions screen where a link named 'Order' will appear if the same is rejected by Exchange. The link shall only appear when your fresh is full executed and cover is rejected.

29. What happens to the open position remaining at the end of the day?

In case of FuturePLUS Stop Loss product, all the positions created for the day are expected to be squared off by the customers before the market closes as this is an Intra day product. In case, if the positions still remains open at the end of day, I-Sec on best effort basis would first cancel all the pending cover orders and then initiate the Square off process at a pre determined timing at market price for all the open positions.

If for any reason position still remains open after end of day then it will be treated as Futures position by exchange and I-Sec and all obligations and margin as applicable to Futures would apply to such open positions. If sufficient margin is not available with you towards such open positions, exchange would levy a short margin collection penalty which I-Sec shall recover from you. In case your cover order gets excess execution than your fresh order then such case shall be squared off on best effort basis by I-Sec and if for any reason, position still remains open after end of day then it will be treated as Futures position by exchange and I-Sec. This will also be handled by I-Sec on the same lines as mentioned above.

30. What happens to the pending fresh and cover SLTP orders remaining at the end of the day?

In case of FuturePLUS Stop Loss Product, all the pending orders which remain unexecuted for the day would be cancelled by the I-Sec on best effort basis. However for any reason order still remains pending and could not be cancelled then after end of day this shall get expired.

31. Will there be any Mark to Market process like in normal FuturePLUS trading?

No. Since the feature of cover SLTP order is available which also indicates the maximum downside involved in a particular position, there is no need of mark to market process.

32. Do I have the option of Add Margin?

No. The option of Add Margin is not available, since it is not relevant due to absence of Mark to Market process in FuturePLUS Stop Loss product.

33. Where do I view my open positions?

You can view your positions on the Open Positions page of your www.icicidirect.com account by selecting the FuturePLUS Stop Loss product from the drop down.

34. Can I-Sec disable a scrip from trading in FuturePLUS Stop Loss product during the day?

Yes, I-Sec can disable a scrip from trading in FuturePLUS Stop Loss product during the day.

35. What will happen to the orders that I have placed in such disabled scrip's?

You will be unable to place new orders in such scrip's. However, you can modify the orders already placed. To square off such positions you can modify cover SLTP order to a market order in NSE.

36. Can I-Sec disable a scrip from placing fresh Limit order in FuturePLUS Stop Loss product during the day?

Yes, I-Sec can disable a scrip from placing fresh Limit order in FuturePLUS Stop Loss product during the day and may only allow market orders in such scrip. You can see the scrips allowed for fresh limit order placement on the stock list page.

37. What will happen to the fresh limit orders that I have placed in such disabled scrips?

You will be unable to place new fresh Limit orders in such scrips. However, you can modify the fresh Limit orders already placed to market. Modification of fresh order Limit price won't be allowed.

38. What would be the brokerage payable on these trades?

The Brokerage for FuturePLUS Stop Lossorders would be the normal brokerages charged currently on similar lines to that of existing FuturePLUS orders. You can refer the latest brokerage schedule on our website www.icicidirect.com on the path Customer service page > Important Information > Brokerage or the specific brokerage plan opted by you.

39. What is Reference Price and Exchange Trade Price execution Range?

In order to promote orderly trading, National Stock Exchange of India Ltd (NSE) has prescribed reference price and execution range for futures and options (F&O) contracts. Orders shall be matched and trades shall take place only if the trade price is within the trade execution range based on reference price of the contract.

The reference price for each contract at market open shall be the theoretical price based on the underlying price or base price of the contract in case underlying price is not available at the time of computation and during trade, it would be the simple average of trade prices of that contract in the last one minute. For contracts that have traded in the last one minute, the reference price shall be revised throughout the day on a rolling basis at one minute intervals. For other contracts, the reference price shall be the theoretical price based on the latest available underlying price and shall be revised throughout the day at regular intervals(thirty minutes).

The execution range for future contracts would be 5% around the reference price. For option contracts, between Rs.0.05 to Rs 50 reference prices, it would be a minimum absolute range of Rs.20 around the reference price. For option contracts above Rs.50 reference price, it would be 40% of such reference price The trade execution range will not apply to long-term option contracts on Nifty.

If any order which is within the operating range but which may result in a trade outside the execution range is entered then such an order (full or partial as the case may be) shall be cancelled by the Exchange

40. Will my FuturePLUS Stop Loss order be impacted due to Reference Price and Exchange Trade Price execution Range?

Yes, since in FuturePLUS Stop Loss you place two orders simultaneously wherein Fresh order will be Future market order with the second leg Future SLTP order. Any of the above two orders can get canceled from National Stock Exchange of India Ltd (NSE) if they try to match an opposite order whose price is not within the Trade Price execution Range.

41. If the Fresh/Cover SLTP order gets canceled by National Stock Exchange of India Ltd (NSE), will I be able to re-enter the Fresh/Cover SLTP Order?

No. In case your Fresh/Cover SLTP order gets canceled by National Stock Exchange of India Ltd (NSE) due to Trade Price execution Range, you will not be allowed to re-enter either Fresh/Cover SLTP Order. In such cases I-Sec on best effort basis would first cancel pending fresh/cover orders and then initiate the Square off process for the pending Open position.

For Example:
Assume you take a buy position for the fresh 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/-. At the time of Execution of cover order, the execution price say for example 91/- is outside the Trade price Execution Range (92-98). Such order will be canceled by Exchange and you will be exposed to higher risk since there will be no order to cover your Open position. In such case I-Sec on best effort basis would try squaring off your net Open buy position at current market price.
Assume you try taking a buy position for the fresh 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/-. If the fresh order of SLTP product is a market order, execution price of market order depends on the available ask - bid prices and quantity at that point of time in exchange. Hence, in this case, if the execution of market order is going beyond exchange specified trade range, then the fresh order (fully or partially) could be cancelled by exchange and you will be exposed to higher risk since reverse position can be created if cover SLTP order gets matched and traded within the Trade price Execution Range. In such case I-Sec on best effort basis would try cancelling your pending cover SLTP order or if cover SLTP order is traded then try squaring off your net Open Sell position at current market price.

42. Can I "Modify" my cover SLTP order once it gets cancelled by National Stock Exchange of India Ltd (NSE)?

No. Once your Fresh/Cover SLTP order gets cancelled by National Stock Exchange of India Ltd (NSE) due to Trade Price execution Range, you will not be allowed to "Modify" your cover SLTP order.

43. Can my Fresh/Cover SLTP order get part cancelled by National Stock Exchange of India Ltd (NSE)?

Yes. Your Fresh/Cover SLTP order can get part cancelled by National Stock Exchange of India Ltd (NSE) if part of the ordered quantity tries to match part opposite order whose price is not within the Trade Price execution Range.

Assume you take a buy position for the fresh 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/-. At the time of Execution of cover order, there are two opposite orders finding match of 500 quantity each at Rs 91/- and 93/-, respectively. The Trade price Execution Range at that point is Rs 92-98. Such order will be partly cancelled (Quantity 500 at Rs 91/-) and partly executed (Quantity 500 at Rs 93/-) by Exchange and you will be exposed to higher risk since there will be no order to cover your part open position. In such case I-Sec on best effort basis would try squaring off your net part open buy position (Quantity 500) at current market price.

Assume you try taking a buy position for the fresh 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/-. At the time of Execution of fresh order, there are two opposite orders finding match of 500 quantity each at Rs 97/- and 99/-. The Trade price Execution Range at that point is Rs 88-98. Such order will be partly cancelled (Quantity 500 at Rs 99/-) and partly executed (Quantity 500 at Rs 97/-) by Exchange and you will be exposed to higher risk since reverse position will be created if cover SLTP order gets matched and traded within the Trade price Execution Range (88-98). In such case I-Sec on best effort basis would try cancelling your part cover SLTP order or if cover SLTP order gets traded then try squaring off your net part open Sell position (Quantity 500) at current market price.

44. Can i do anything if any of my Fresh/Cover order gets part cancelled by National Stock Exchange of India Ltd (NSE)?

Yes. You can use "Quick Exit" link available against the Fresh order of such paired order(s) under the Order book & also available under Open position page for the position created, if any. Quick Exit will help to close such open paired order(s) or position, if any under a particular contract. To know more about "Quick Exit" please refer below FAQs.

Quick Exit is a facility provided to quickly close any particular open FuturePLUS Stop Loss(FPSL) orders / positions under a particular contract.
Example:
Case 1 - In a case where fresh order is part executed and cover order is ordered and you want to book profit by squaring off your position with the help of "Quick Exit" link given on Order Book and Open Position then system will

46. Will Quick Exit link be displayed against all the orders in order book.?

No. Quick Exit link will be displayed only against FuturePLUS Stop Loss(FPSL) fresh order(s) in order book irrespective of the status.

47. Will Quick Exit link be displayed against all the positions in FuturePLUS Stop Loss(FPSL) open position page ?

Yes. Quick Exit link will be displayed against each open position on FuturePLUS Stop Loss(FPSL) position page under Action column and below "Square OFF at Market Price" link.

48. Is there any difference if I do Quick Exit from Order book or FuturePLUS Stop Loss(FPSL) position page?

No. There is no difference if you do Quick Exit from order book or open position page.

49. Will Quick Exit link be displayed in order book for already closed positions?

Yes Quick Exit link will be displayed against all fresh orders irrespective of the status. However there will be no impact if you run Quick Exit for already closed positions.

"Trade Analysis" is a Post Trade Tool available on our website for intraday traders to analyze their trade's compared to various price points of a stock/contract during the trading time frame on a particular trade date. Reviewing trades by professional traders is critical part of post-trade and allows traders to take the screenshot of the stock/contract chart after the trade is completed, plots Buy and Sell points, recapping the trade and tweaking the trade rules for the future with the learnings of every position taken and exited on a trade date.

With "Trade Analysis" you can now analyze your trades done in FuturePLUS Stop Loss product only.

Please visit the Trade Book, under Action column a link named "Trade Analysis" will be available against the same day's trade only under the action Buy/Sell.

This link is available only on the same day against trades done on that date and is not available for previous trade dates.

No. This feature being a post trade tool can be used only after market hours and for the same trade date.

Trade Analysis can be used to analyze the impact on the closed positions Profit/Loss by choosing a base for comparison i.e. Fresh trade or Cover Trade. In case you choose Fresh as base to analyze then the chart will freeze the entry price point as per your trade price and help analyze the impact on your Profit/Loss by changing the exit price points on the chart just by moving the mouse anywhere during the time frame and you can view the possibility of making Profits assuming you had exited at that time and price point available on that trading date. Similarly, you can choose to keep Cover Trade as base in that case the chart will freeze the exit price as your Cover trade price and just by moving the mouse you can see the impact had your entry price point been different as per the available price ticks on the same trade date.

The Trade Analysis feature helps traders in easily plotting on the chart and knowing the possibility of making Profits or curtailing Losses on their closed position during the day had the trader chosen a different entry or exit price point available at a different time during the trading session. Also to support their analysis, key market data like Open, Close, High and Low Prices related to their position in that stock/contract is all made available on the same screen along with the intraday price chart.

8. Can customer compare any side of the trade, Fresh or Cover, to see the P/L he could have made on his position on that day?

Yes. Customer can compare any side of the trade Fresh or Cover to see the Profit/Loss he could have made on his position on that day by selecting the Fresh or Cover options available on charts.

10. Does the Profit/Loss displayed under Trade analysis consider Brokerage and other charges ?

No. Profit/Loss displayed under Trade analysis does not consider Brokerage and other charges. Trade analysis is purely based on your Trade price.

11. What can be viewed for a trade with Trade Analysis - Only Profits, Only Losses or Both?

Both Profit as well as Loss at different price points can be viewed for the trades with Trade Analysis

Cloud Order is a feature for placing quick orders in all F&O products like Future, FuturePLUS, FuturePLUS Stop Loss and OptionPLUS* products. Customer can save orders post market or before market hours to save time on filling order details during market hours and within clicks the order can be placed using this feature. Also this feature can be used for saving order for future order placement and customer can place them by clicking Buy/Sell link available against each order saved on Cloud Order page under F&O>Transact Menu. This feature will save customer's time and he / she need not enter all the order details each and every time during order placement.

Presently under F&O segment, you can save and place Cloud Orders in Future, FuturePLUS, Option along with existing FuturePLUS Stop Loss and OptionPLUS* products.

*Note : Currently OptionPLUS product is not available to NRI customers.

You can click 'Add to My Cloud' Button on Cloud Order page available under F&O>Transact menu. This will open a page where you can enter and save the order details like Stock Code, Option Type (in case of Option & OptionPLUS*), Contract Details, Quantity, Order Type and Cover SLTP Difference (in case of FuturePLUS Stop Loss).

You can also add Cloud Orders from order placement page, where you can click on "Buy/Sell" links under "Place Cloud Order" column after clicking select contract, if there is no order saved to Cloud for the selected contract. If you have an order already saved to Cloud Orders in the selected contract then you will be taken to Cloud Order page from where you can Buy/Sell and place your order during market hours.

You can add a Cloud Order anytime during market hours as well as before or after market hours.

Cover Stop Loss Trigger Price Difference is the price difference amount between LTP/Limit Price of Fresh order and SLTP of your cover order in case of FuturePLUS Stop Loss or OptionPLUS orders. You can choose any difference amount upto two decimals and this difference would be used to calculate the SLTP of your cover order and existing functionality for SLTP would continue. This difference is required for Cloud Order placement under FuturePLUS Stop Loss and OptionPLUS products.

You can click 'Buy/Sell' link against your saved Cloud Order to proceed placing order during market hours. This will open order placement page with all pre populated order details saved by you under Cloud Order for respective product and you just need to submit the order.

Alternatively, on order placement page when you select a contract there is a column named "Place Cloud Order" with "Buy/Sell" links and on clicking these links, if you have an order already saved to Cloud Orders in the selected contract then you will be taken to Cloud Order page from where you can Buy/Sell and place your order during market hours. In case you do not have an order saved to cloud in the selected contract then you will be required to "Add to Cloud order" where you can save this contract with the required order details for regular future use for quick order placements where all order details will then be pre-populated through this one time effort of saving to cloud. You can also have multiple orders saved in the same contract and place order against the desired order details saved to cloud.

Which order details are required to be entered at the time of saving a Cloud Order?

You are required to enter Stock Code,select Option Type (in case of Option & OptionPLUS*), Contract details, Quantity, Order Type, and Cover SLTP Difference in case of FuturePLUS Stop Loss.

Can I modify Cloud Order details previously saved? If yes, which order details will I be able to modify?

Yes, you can modify a saved Cloud Order details like Quantity, Order Type of all F&O products and Cover SLTP Difference of FuturePLUS Stop Loss anytime irrespective of market open or closed by clicking "Modify" link available on Cloud Order page against each Cloud Order saved. Please note you cannot modify Stock Code and Contract Details for a saved Cloud Order. If you wish to change the same then you will have to add another Cloud Order.

Can I delete a Cloud Order(s)? If yes, can I delete only one Cloud Order or even multiple Cloud Orders can be deleted?

Yes, you can delete your saved Cloud Order(s), single or multiple. For deleting Cloud Order(s) you will have to tick the checkbox given under 'Delete' column against each Cloud Order required to be deleted and then click "Delete Button" available at the end of Cloud Order page. In this way you will be able to delete Single or Multiple Cloud Orders at a time.

Can I add Cloud Orders in different contracts of the same underlying/stock code?

Yes, you can add multiple Cloud Orders in the same underlying contract. You can save different order details (like Quantity, Order Type and Cover SLTP Difference) under the same underlying contract. Please ensure to keep one of the order details different than the previously saved orders in the same contract. However, it is advisable to have fewer Cloud Orders in same underlying contract to avoid errors at the time of order selection and placement due to similar multiple orders.

Can I place a Cloud order i.e. Buy/Sell in a contract/underlying which gets disabled after I had added to Cloud order page?

No, you will not be able to place a Cloud Order in a contract/underlying which gets disabled after you had added it to your Cloud Order page. You will be able to proceed with the Buy/Sell links through Cloud order page with pre-populated details but on proceeding you will get an error if contract or underlying is disabled. Hence, you are requested to check the enabled contracts at regular intervals to delete Cloud Orders in contracts which are disabled for long period.

What will happen to my Cloud Order if the contract in which Cloud Order is saved has expired?

Cloud Orders in expired contracts will not appear in your Cloud Order page after expiry date.

1. What other resources will the site offer me to help in taking smarter decisions for online futures trading?

Our site offers you a comprehensive set of resources like Derivatives School, My Index and Futures Pricing calculator to help you in making better decisions.

In "Derivatives School" you can get whole lot of information like introduction to Futures and Options, its application, pricing, various trading strategies etc.

"My Index" allows you to change the price of selected stocks and see its impact on index.

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