a) Account Opening

b) Trading in Commodity Derivatives

c) About Trading in Commodity Futures at ICICI Securities

d) About Trading in Commodity Options at ICICI Securities

e) Settlement of Commodities - Cash Settled and Physically settled

f) Commodity Margin Debit/Credit Process

g) Settlement Obligation in Commodity Futures

h) Settlement Obligation in Commodity Options

i) Withheld Profits

j) Specific FAQ on Exchange specified Clientwise limit

k) Peak Margin Changes

l) Settlement of Commodity Options

m) Shares as Margin

n) Basket Order feature

a) Account Opening

. When will I be able to start trading in commodities?

If you are an existing customer with 3-in-1 ICICIdirect.com account or have opened a new trading account. You will be able to start trading in commodity if your linked ICICI bank account is more than 6 months old or have securities value above Rs.5000 in your linked ICICI Bank demat account or have given financial documents physically. You can activate your account by accepting online Terms and Conditions for Commodity Derivatives and submitting Mandatory Communication Details wherein you will have to give mandatory details and commodities preference. This 'Mandatory communication Details' page will be displayed post acceptance of Terms and Conditions. If you are a resident Indian then your Gross Annual income should have been update within 18 months, if you are a corporate then your networth should have been updated within 18 months. You can update your gross annual income p. a./Networth under Setting > Personnel Details –>Other Details tab.

If you have not linked your ICICI Bank account and have linked other bank for trading, then either you have to give the financial document or you should have securities above Rs. 5000 in your linked ICICI Bank demat account to start trading in commodity segment.

For further information on the above feel free to contact our customer care numbers or you may also write to us at helpdesk@icicidirect.com.

. Is an existing customer required to submit additional document(s) to begin trading in Commodity Derivatives?

No, if you are an existing customer and have a 3-in-1 ICICIdirect.com account and have linked bank account which is 6 months old or have securities value above Rs.5000, you can activate your account by accepting online Terms and Conditions for Commodity Derivatives and submitting Mandatory Communication Details wherein you will have to give mandatory details and commodities preference. This 'Mandatory communication Details' page will be displayed post acceptance of Terms and Conditions. If your linked Bank Account is not more than 6 months old or you do not have minimum shareholding of Rs.5000 then you can activate your account for Commodity Derivative Segment by submitting the prescribed documentation. Please, note once you have submitted the mandatory communication details and wish to update the same then you can do so from Personal Details page.

. What documents would I be required to submit for registering myself in for Commodity Derivatives? Do I need to submit any proofs along with the documents?

(a) Existing customers: If your linked Bank account is more than 6 months old or you have securities value above Rs.5000, then you can activate your account for Commodity Derivatives Segment online by accepting the Online Terms and Conditions for Commodity Derivative and submitting Mandatory Communication Details wherein you will have to give mandatory details and commodities preference. You can also have to submit financial documents to get your commodity segment enabled.

(b) New customers: If you are not already a registered customer of I-Sec, you will have to open a 3-in-1 account with I-Sec. The account opening documentation for the 3-in-1 form has been consolidated for all product offerings and contains the Commodity Derivatives documentations also. Proof of identity and address, as prescribed, would be required to be submitted along with the new account opening form. However, you will be able to trade in commodity only if you have submitted the financial document or fulfilled the criteria as mentioned in point (a)

. I am an existing customer why do I need to sign and submit additional documentation for trading in Commodity Derivatives?

The additional documentation requirements have been specified by the regulators and as a broker ICICI Securities Ltd (I-Sec) needs to comply with these requirements.

. How will I receive the intimation on registration for Commodity Derivatives?

You will receive an e-mail once your form has been successfully processed and you are registered for Commodity Derivatives. You will be required to accept the online Terms and conditions applicable to Commodity Derivatives and submit Mandatory details along with Commodity preference. Further, you will be able to start trading in Commodities when confirmation for Unique Client Code is received from exchange.

b) Trading in Commodity Derivatives

. Will I be able to trade in both Future and Options in Commodity Derivatives?

Yes you will be able to trade in both Futures and Options in Commodity Derivatives..

. On which exchanges will I be able to buy and sell commodity derivatives contracts?

Multi Commodity Exchange of India Ltd (MCX).

. What are the Trading hours of Commodity Derivatives?

Trading in Commodity derivatives through www.icicidirect.com is allowed during the exchange specified timings. Currently the trading hours on MCX for Commodity derivatives from Monday to Friday between 9:00 A.M. to 11:30 P.M. (up to 11:55 P.M. on account of day light savings typically between every November and March of the following year) Agri-commodities are available for futures trading up to 5:00 p.m. whereas other commodities such as Bullions, Metals and Energy products are available up to 11:30 pm / 11.55 PM and International reference able Agri-commodities are available up to 09:00 pm as notified by SEBI/Exchange. Please note these exchange timings are subject to change from time to time on any day for any reason that exchange may deem fit

.Can I place overnight orders (orders outside market hours) in Commodity Derivatives segment?

Yes. Overnight orders are allowed to be placed in Commodity derivatives segment. Only Limit orders are permitted and such orders will be sent to the exchanges on the next trading day once the markets open.

c) About Trading in Commodity Futures at ICICI Securities

. What is Futures Trading in Commodities at ICICIDirect.com?

As a customer of ICICIdirect, now you can trade on commodities futures on MCX. It comes with a comprehensive tracking cum risk management solution to give you enhanced leveraging on your trading limits.

In Commodities Future trading, you take buy/sell positions in commodity Future 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.

To take the buy/sell position commodity Futures, you need to have certain amount of 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.

. Which underlyings are eligible for Commodities Futures trading? Why is the underlying list restricted to specific underlying commodities only?

At present we have enabled selected underlyings for trading in commodities futures. Only those underlyings which meet the criteria of liquidity and volume have been considered for commodity futures trading. ICICI Securities at its sole discretion may enable or disable any particular underlying for trading in Commodity Futures.

. Which contracts under an underlying commodity are enabled for Future trading in Commodities derivatives? Why is the contract list restricted to specific contracts only under various underlying?

ICICIdirect enables selected contracts under various underlying commodities for trading in the Futures. 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 at the discretion of ICICIdirect from time to time.

. Can an enabled contract be disabled later?

Yes, it is possible that ICICIdirect disable 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.

. Where can I view commodity futures contracts?

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

. How is the commodity futures contract defined?

COPPER future contract expiring on 30th Apr, 2020 is defined as "Fut-COPPER-30-Apr-2020". Wherein "Fut" stands for Futures as Commodity derivatives product, "COPPER" for underlying commodity and "30-Apr-2020" for expiry date.

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

A commodity enabled for trading on futures is called an "Underlying" eg. GOLD, SILVER, COPPER etc. There may be various tradable contract for the same underlying based on its different expiration period. For example, Fut-COPPER-30-Apr-2020, Fut-COPPER-29-May-2020 and Fut-COPPER-30-Jun-2020 are "contracts" available for trading in futures having COPPER as "underlying".

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

In 'Commodity' segment I "Place Order" page, you need to define the Underlying. On clicking on "Select 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. You need to define the order type i.e. market or limit, Order Validity i.e. Day or IOC (Immediate or Cancel) or GTC (Good Till Cancelled) or GTD (Good Till Date), order validity period i.e. date for GTD, limit price and stop loss trigger price if any.

. Can I choose to enter Quantity in terms of Lot Size or number of Lots at the time of placing Order?

Yes. There are two options as below:

1) Quantity

If you choose to take position by selecting quantity, please follow the below steps:

Step 1: Enter the quantity in terms of lot size you wish to place order or take the position for.
Step 2: Click anywhere outside the box, the number of lots will be auto populated against the 'Lots' field.

2) Lots

If you choose to take position by selecting number of Lots, please follow the below steps:

Step 1: Enable the 'Lots' field
Step 2: Enter the number of Lots you wish to place order or to take the position for.
Step 3: Click anywhere outside the box, the quantity in terms of Lot size will be auto populated against the 'Quantity' field.

. Where can I see the Contract Specific Information?

You will be able to see the contract specific Information under 'Select Contract' section on Place Order and also on the underlying list on clicking on the Underlying code. For more details on Exchange's Contract specification you may visit www.mcxindia.com. Sample link for Gold commodity is https://www.mcxindia.com/products/bullion/gold

. What forms of Margins are acceptable for placing orders or taking commodity futures positions?

In order to place an order in commodity futures or taking commodity Future positions, margin can be given in the form of Cash (by way of allocation of funds from your bank account)

. Will I be able to Cancel & Modify my Orders?

Yes, you will have an option to Cancel and Modify all your pending Orders or Part Executed Pending Order. Cancellation is allowed for complete remaining quantity of your pending orders. In case of Modification, you can choose to modify Quantity/Lots, Price or convert from Stop Loss to Regular for pending order at exchange end. In case status of Order is changed at exchange end then an appropriate message will be displayed while you try to cancel or modify.

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

Initial 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 commodity. You can check the Margin obligations on your portfolio for an underlying including pending order(s), if any, from the "Margin Calculator" link under commodity section. The blocked margin also includes the notional loss, if any, on the existing positions under a portfolio for an underlying commodity.

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

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

. Is the margin requirement uniform for all Commodities?

It may not be so. Margin amount required may differ from commodity to commodity based on the risk involved in the Commodity and your portfolio that exists for the commodity, which depends upon the liquidity and volatility of the respective commodity besides the general market conditions. For example, 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.

. 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 commodity. It may so happen that you have taken your position and Rs. 90000 margin is taken for the same. But later on due to the increased volatility in the prices, the margin is increased to Rs. 95000. In that scenario, you will have to Add Margin or allocate additional funds to continue with open position. Otherwise it may come in MTM loop and may 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.

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

Squaring off a position means closing out a Commodity futures position. For example, if you have futures buy position of 10 GOLD expiring on 20-Apr-2020, squaring off this position would mean taking sell position in 10 GOLD expiring on 20-Apr-2020 on or prior to 20-Apr-2020. The order placed for squaring off an open position is called a cover order.

. 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.

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

Yes. You may visit the online order book to modify details of your pending square off order under a disabled contract banned underlying. Please note you will be able to modify the quantity downwards and upwards only up to the net open position considering the square off orders already placed for such position.

. Is margin blocked on all future orders?

No. Margin is blocked only on future orders, which results into increased risk exposure. For calculating the margin at order level, you can use the Margin Calculator link by specifying the existing positions 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.

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

Initial Margin means the amount of margin required by ICICI Securities to be deposited with it by you before undertaking Transactions in Commodity Futures for an underlying portfolio and also on a continuing basis thereafter on open positions which shall include SPAN Margin, Extreme Loss Margin, other Exchange Margins, notional loss if any on positions and such other additional margin as may be specified by Exchange or ICICI Securities from time to time. Initial margin amount is required to be allocated under Commodity 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 Commodity section by entering your positions or expected positions.

. When is initial margin computed for my Commodity Future 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.

. What are the margins required and how are they calculated?

The margin amount is calculated by arriving at the SPAN margin using the Standardized Portfolio Analysis of Risk (SPAN) system used by the Exchange for margin computation plus the Extreme Loss Margin plus other Margins by Exchange and any additional margin required by ICICI Securities as per its risk management policy. Extreme Loss Margin is the margin amount required on pending orders at market or limit price by client and on additional position based on the Average price/Base price of the relevant underlying commodity contract which is added to arrive at initial Margin. In addition, other margins which are Additional, Special and Tender Margin as prescribed by exchange are levied. Initial Margin would also include such other additional margin as may be specified by ICICI Securities from time to time. Over and above the Initial Margin, I-Sec would require the notional loss on the portfolio at latest Current Market Price as margin to cover the risk and also safeguard your positions from being squared off intraday 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 which returns the SPAN Margin required from time to time. The Extreme Loss Margin and other margins for futures positions is calculated on the order/trade price for the contract position at the time of order placement/trade execution and Current Market Price on open positions at the time of running intraday mark to market process.

. 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.

. Where and how is my margin calculated displayed for each commodity?

Margins are calculated taking the entire orders/positions i.e. all Commodity Futures pending order(s) and open position(s) under a specific underlying portfolio and not for each Commodity Future contract. Hence, one consolidated margin amount would be displayed against each underlying portfolio on your open positions page under the Commodity trading section of www.icicidirect.com

. How do I see my open positions in Commodity Futures?

You can view all open commodity futures positions by clicking on "Open Position" > Commodity thereafter selecting "Future" as product. The commodity open positions page gives details such as contract details, buy/sell position, open position quantity, pending Buy/Sell order quantity, average price, Last Traded price, total margin blocked on the open position and pending orders, minimum margin required and available margin at underlying portfolio-group level. Further under Action column you will have the links namely Square off, Square off at Market, My MTM and Add Margin.

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

Average price column would display the weighted average trade price of the positions taken during the day. At the end of Day, Average price column would display the closing price of the contract at which EOD MTM is carried out for your futures contract positions. This price would become the base price for the next day in case positions are kept open and displayed under the same column of average price under open positions page.

. 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" or “Square off at Market” on the "Open Position" page.

. How is the profit and 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 therefrom.

For example, say you have a Buy 2 Kg Gold futures position in contract FUT-GOLD- 05 Jun 2020 at an average price of Rs. 41000 Rs/10 GRMS created through the execution of two orders – Buy 1 Kg @ 40800 Rs/10 GRMS and Buy 1 Kg@ 41200 Rs/10 GRMS.
Multiplier is 100 since price of Gold is quoted Rs/10GRM and Quantity unit is in Kg as prescribed by exchange for per Contract If you square off part position @ 42000 R/10 GRMS then the profit on such square off would be calculated as:

Quantity squared off * (Square off trade price - Weighted Average price of the position)

1 * (42000 - 41000) = 1000

1000*100 = 100000 (post multiplier)

Profit or Loss for all your trading transactions can be checked from the Commodities "Portfolio Details" link.

. What is meant by Minimum Margin?

Minimum Margin is the margin amount, you should have available with us 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.

. 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 commodity separately.

. 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 Commodity Futures contract positions within an underlying would be considered for computing the available margin at an underlying portfolio level.

. 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 Commodity section.

. What would be the suitable time to check required margins*?

Margins should be checked regularly during the trading day and in case a position is carried forward to next trading day then it could be checked prior to opening of the market.

For a carried forward position, it could be checked prior to opening of the trading in commodities market, say between 8:30 AM and 9:00 AM. A customer can check the available margin and minimum margin along with the trigger price.

*Margin may differ subject to receipt of file from exchanges and other system related issues.

. What is a pre-expiry margin?

In commodity derivatives segment, few contracts are settled in cash and others by delivery. Where a commodity contract is settled in cash then a pre-expiry margin might be required, usually in volatile commodities like Crude oil and Natural Gas. The list might get modified as per the exchange directions.

SEBI vide circular number SEBI/HO/CDMRD/DRMP/CIR/P/2021/20 dated February 23rd, 2021 has communicated that pre-expiry margins shall be imposed on cash settled contracts wherein the underlying commodity is deemed susceptible to possibility of near zero and/or negative prices as identified by exchange/CC under ARMF circular. In case of these contracts, pre-expiry margins shall be levied during the last five trading days prior to expiry date, wherein they shall increase by 5% every day.

List of cash settled commodity futures contracts where pre-expiry margin is required, is as below:

Commodity	Cash Settled Contracts	Pre-Expiry Margin Required
Crude Oil	Yes	Yes
Natural Gas	Yes	Yes
Crude Palm Oil	Yes	No
BULLDEX	Yes	No
METLDEX	Yes	No
ENRGDEX	Yes	No

Illustration: Requirement of Pre-Expiry Margin in Cash Settled Contracts: -

Commodity	Initial Margin* (A)	Pre-Expiry Margin as per SEBI Circular (B)	Total Margin Requirement (A+B)
Crude Oil	20%	25% ( additional 5%* 5 last trading days)	45%
Natural Gas	30%	25% (additional 5% * 5 last trading days)	55%

. 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, Extreme Loss Margin and Other margins at CMP of commodity futures contract position. 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 500 quantity of Futures - CRUDE - 27 Feb 2020 at Rs.4000 and minimum margin is 50000. You would be having a margin of Rs.60000 blocked on this position. The current market price is now say Rs.3950. This means the effective available margin Rs. 35000/- which is less than the minimum margin of Rs 50000/- and hence additional margin to be called in for. Additional margin to be calculated as follows:

(a) Margin Blocked

Rs.60000

(b) Less: MTM Loss

(4000-3950) * 500

Rs.25000

(c) Effective available margin

(a-b)

Rs.35000

(d) Minimum Margin required

Rs.50000

(e) Re-calculated revised initial margin

Rs. 60000

Additional margin Call

(e-c)

Rs. 25000

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

If available margin on any open position is highlighted in red colour, it indicates that the available margin on that position has fallen and is very close of breaching the minimum margin requirement. If available margin falls below the minimum margin required on that position, then such 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, on best effort basis.

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 as the Available Margin is subject to change on every change in CMP.

Once the position gets displayed in red colour, colour of such position shall be updated only after intraday MTM process is run by I-Sec or by client.

. What is My MTM link given on Commodity 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 Commodity open positions page to check whether your position is likely to get squared off during the intraday 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 intraday MTM square off process is run by I-Sec. If your Available Margin is more than Minimum Margin, then no action will be taken on your commodity underlying portfolio on clicking the My MTM link.

. 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.

. 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 orders in that underlying-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.

1. Cancel all pending futures orders in that underlying portfolio-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 and/or at the discretion in near month contract first in that underlying portfolio 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 portfolio 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 portfolio group are 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.

. 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.

. Can I do anything to safeguard the positions from being closed out?

Yes, you can always allocate additional margin, suo moto, on any underlying portfolio having open position. 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 unfavourably volatile with respect to your positions under an underlying portfolio. You can add margin to your position by clicking on "Add Margin" link available for a specific underlying group total on the Commodity futures "Open Position " 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 up to 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.

. 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. Please note, Trigger Price would be displayed on Open position page only in case there is marginable position in a single contract in an underlying. However, you can continue to track your positions for intraday mark to market process at portfolio level on the basis of Available Margin and Minimum Margin. Accordingly, you can allocate additional funds if Available Margin amount is displayed with red colour.

Trigger price is a price displayed for ease in tracking the position for any mark to market margin shortfall and will be just an indicative that your position may likely to come under the mark to market process and may get squared off if LTP breaches the indicated trigger price.

. Will the Trigger Price be displayed against all the Open positions?

Trigger Price would be displayed only in case there is marginable position in a single contract in an underlying. Hence, Trigger Price may not be displayed against all Future open positions in scenarios like Future spread positions (including both Perfect & imperfect spread positions), when additional future position/order(s) is created with same/different flow in same underlying & different contract In such cases, ‘NA’ will be displayed under Trigger Price column.

. 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. Please note, Trigger Price would be displayed on Open position page only in case there is position in a single contract in an underlying.

. How is the Trigger Price calculated for Futures positions?

1. Trigger Price is calculated as follows in case of Buy positions:
   
   Example: Say you have bought 500 quantity of Futures - CRUDE - 19 Apr 2021 at Rs.4000. whereMargin Blocked against the position is 60000 and Minimum Margin is 50000.
   
   Trigger Price calculation for Future Buy Positions: WAP on Contract level - ((Blocked Margin – Minimum Margin) / Open Position Quantity).
   
   Trigger Price = 4000-{(60000-50000)/500} = 3980.
2. Trigger Price is calculated as follows in case of Sell positions:
   
   Example: Say you have sold 300 quantity of Futures - NATGAS - 27 Apr 2021 at Rs.200 where the Margin Blocked against the position is 52000 and minimum margin is 42000.
   
   Trigger Price calculation for Future Sell Positions: WAP on Contract level + ((Blocked Margin – Minimum Margin) / Open Position Quantity).
   
   Trigger Price = 200+{(52000-42000)/300} = 233.30
   
   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.

. 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. Also, in case there is existing position with additional order(s) in same contract then Trigger Price would be recalculated on any change in margin value due to events like order modification, cancellation, rejection, order expiry etc.

. 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, any release of margin in excess of required margin (in profitable position or due to reductions in margins, if any) is possible only when there is a 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.

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

EOD MTM on daily basis is a mandatory requirement in Commodity futures. Every day the settlement of open commodity Futures positions takes place at closing/settlement price declared by exchange for that day. The Average price as shown on the open position futures page displays the current days weighted average trade price for positions taken during the day or previous day's closing price for carried forward positions. This average price is considered as base price and is compared to the closing price and difference Profit or Loss is cash settled. In case of Profit in EOD MTM, the 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 previous trading day closing price at which last EOD MTM was run. Closing Price for the contracts are provided by exchange after making necessary adjustment for abnormal price fluctuations and it is different than LTP.

. 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. In order to keep sufficient margin on underlying portfolio for open position after EOD MTM, ensure that sufficient allocation is available under Commodity segment. You must visit the allocation amount for Commodity on daily basis and allocate further if present allocation is found insufficient.

Due to daily MTM and payin/payout, allocation amount for Commodity 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 Commodity. Payin amount is reduced from allocation you make for Commodities and payout is given in your commodities allocation for further trading.

. Is there any impact on the limit on execution of a buy/sale 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 commodity 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 execution of an order results in release of differential margin depending on the margin required on the entire portfolio for that underlying may have impact on limits.
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.

. 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 will be included to calculate the notional loss required to be added to the blocked margin amount for an underlying portfolio.

. What will happen in case my Commodity prices goes negative?

Commodity prices can go negative as per MCX circular nos. MCX/CTCL/525/2020, MCX/MCXCCL/018/2021 or such other circular as may be issued by SEBI/ MCX in this regards from time to time.

In case the prices in any commodity goes negative then please note, ICICI Securities at its discretion may do early End of Settlement (EOS) and close the position (Long or Short) earlier in such commodities if the threshold prices are reached. Threshold prices for different commodities would be determined by ICICI Securities and customers would be notified about it every month.

. What are the order types in Commodity Future?

You can place Regular and Stop Loss Order as provided by Exchange.

. What is a Stop Loss order?

A Stop loss order allows the client to place an order which gets activated only when the market price of the relevant security reaches or crosses a threshold price specified by the investor in the form of 'Stop Loss Trigger Price'. When a stop loss trigger price (SLTP) is specified in a limit order, the order becomes one which is conditional on the market price of the contract crossing the specified SLTP. The order remains passive (i.e. not eligible for execution) till the condition is satisfied. Cloud Order eligible for execution by being taken up in the matching process of the exchange) and then on behaves like a normal limit order. It is used as a tool to limit the maximum loss on a position.

Examples:

Stop Loss Buy Order

'A' short sells 2500 Quantity (1 lot = 2500 qty) of Copper contract at Rs 325 in expectation that the price will fall. However, in the event the price rises above his buy price 'A' would like to limit his losses. 'A' may place a limit buy order specifying a Stop loss trigger price of Rs 345, a limit price of Rs 350 and last traded price 340. The stop loss trigger price (SLTP) has to be between the last traded price and the buy limit price. Once the market price of Copper breaches the SLTP i.e. Rs 345, the order gets converted to a limit buy order at Rs 350.

Stop Loss Sell Order

'A' buys 2500 Quantity of Copper contract at Rs 325 in expectation that the price will rise. However, in the event the price falls, 'A' would like to limit his his losses. 'A' may place a limit sell order specifying a Stop loss trigger price of Rs 305 , a limit price of Rs 300 and last traded price is at 310 The stop loss trigger price has to be between the limit price and the last traded price at the time of placing the stop loss order. Once the last traded price touches or crosses Rs. 305, the order gets converted into a limit sell order at Rs. 300.

Important

Please note that in a buy order the SLTP cannot be less than the last traded price. This is treated as a normal order because the condition that the last traded price should exceed the stop loss trigger price for a buy order is already satisfied. Similary, in case of a stop loss sell order the SLTP should not be greater than the last traded price for the same reason.

. What are "Day", "Good Till Cancel”, “Good Till Date" and "Immediate or Cancel" orders?

Exchange allows different order validities for orders under commodities segment and details are as below:

1. Day/End of Session orders are orders that remain valid only for one trading session until executed or cancelled. Any unexecuted order pending at the end of the trading is expired.
2. Good till Cancel (GTC) order will stay in system till the order is cancelled by you or by I-SEC or by Exchange for any reason. The maximum number of days for which the GTC order can remain in the system is till maximum stipulated time by I-Sec, if any or Contract Expiry whichever is earlier.
3. Good Till Date (GTD) order allows the user to specify the date till which the order should stay in the system if not executed or cancelled/closed by I-Sec or Exchange for any reason. These orders are available for execution till end of date indicated in the order or till maximum stipulated time as decided by I-Sec or till last trading day of the contract, whichever is earlier.

. Will there be any early closure of my GTC and GTD Orders by Exchange or I-Sec and what are the likely reasons?

Yes, your GTC & GTD orders may get cancelled or closed earlier due to following reasons:
1) By Exchange: In case your GTC & GTD orders are outside the daily price range, self-trade or any other reason as may be deemed fit by Exchange.
2) By I-Sec: In case you have not kept sufficient margin for Margin Calls during the day, in case of EOS for early closure of position or any other reason as may be deemed fit by ICICI Securities for risk management or recovery purpose ICICI Securities may cancel your GTC & GTD orders.

. What is meant by a freeze order?

Orders in Commodity Future may get freezed at the exchange end. There is only quantity freeze (no price freeze) in case of future. In case of Commodity Future, the quantity should not be beyond quantity prescribed by exchange.

. 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.

. Is there any Client Wise Position Limits for Agri and Non Agri Commodities?

Yes, as mandated by Exchange, there is near month client wise position limit for agri commodities and Overall Client wise position limit applicable for both agri and non agri commodities.

In case Near Month Client wise position limit is breached then I-Sec at its discretion reserves the right of not allowing fresh order placement in that particular commodity's near month contract.

In case Overall Client wise position limit is breached then I-Sec at its discretion reserves the right of not allowing fresh order placement in that particular commodity.

. Is there any Commodity Wise Quantity Wise Limit across all client in Commodities?

Yes, as mandated by exchange, there is a commodity wise quantity wise limit across all clients. In case this limit is breached then I-Sec at its sole discretion reserves the right of not allowing fresh order placement in that particular underlying commodity across all clients.

. What is meant by spread position?

Spread position means risk off-setting positions in contracts expiring on different dates in the same underlying. For example, you take buy position for 5000 quantities in FUT-COPPER-31-Mar-2020 @ 350 and sell position for 2500 quantities in FUT-COPPER-30-April-2020 @ 400. Hence, 5000 buy position in FUT-COPPER-31-Mar-2020 and 2500 sell position in FUT-COPPER-30-April-2020 forms a spread against each other and hence called spread position. In this example, the balance 2500 quantities buy position in FUT-COPPER-31-Mar-2020 would be non-spread position.

. Will reduced margin benefit be available to my 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. Spread benefit is made available till the last date of expiry as per exchange or as per maximum stipulated time as permissible by I-Sec risk management system. Please note that in case you do not maintain sufficient margins for your open positions your positions may get squared off in the I-Sec risk management process due to which the spread benefit on margins may get removed.

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

As mentioned in above FAQ's, positions in the near month expiry contract for physically settled commodities are required to be squared off by you or by I-Sec as physical delivery is currently not allowed, hence the spread margin benefit will be removed. And in case of cash settled near month contract, maximum benefit can continue till expiry or at the discretion of I-Sec in case of EOS for early closure due to any risk management decision.
Please note, once one of the leg is closed for any reason, the other leg will become naked and there will be no reduced margin benefit. Thereby, increased margins would be required on your open position at the end of day at expiry/EOS for early closure of positions. 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/EOS for early closure or square off the expiry month position and create the spread with a different expiry month contract of that underlying commodity to continue the benefit of reduced margins on your spread positions.

Commodity Cloud Orders

. What is a Cloud Order?

Cloud Order is a feature for placing quick orders in Commodity Futures product. 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 Place Order>Cloud Orders>Commodity 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.

. In which products under Commodity derivative can I place Cloud Order?

Presently under Commodity derivative, you can save and place Cloud Orders in Future product.

. How can I add a Cloud Order?

You can click 'Add to My Cloud' Button on Cloud Order page available under Commodity>Cloud Order This will open a page where you can enter and save the order details like Contract Details, Quantity, and Order Type.

You can also add Cloud Orders from order placement page, where you can click on "Buy/Sell" links under "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.

. At what time can I add a Cloud Order for Commodity Futures?

You can add a Cloud Order anytime during market hours as well as before or after market hours.

. How can I place a Cloud Order?

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 "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 Contract details, Quantity and Order Type.

. 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 commodity future products 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 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?

Yes, you can add Cloud Orders in different contracts of the same underlying Commodity.

. Can I add multiple Cloud Orders in the same underlying commodity contract?

Yes, you can add multiple Cloud Orders in the same underlying commodity contract. You can save different order details (like Quantity, Order Type) 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 add a Cloud Order if a contract/Underlying is disabled?

No, you cannot add a Cloud Order if a Contract/Underlying is disabled.

. 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.

d) About Trading in Commodity Options at ICICI Securities

.What is Commodity Options Trading at ICICIDirect.com?

As a customer of ICICIdirect , you can now trade in commodities options on MCX. It comes with a comprehensive tracking cum risk management solution to give you enhanced leveraging on your trading limits. In Commodity options trading, you take buy/sell positions in commodities options contracts expiring in different months with various Strike Price. If, during the course of the contract life, the price moves in your favour, you make a profit. In case the price movement is adverse, you incur a loss. To take the buy/sell position on commodities options, you have to place certain % of order value as margin. With Commodity options 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.

.What is a Call?

Call is the Right but not the obligation to purchase the underlying Asset at the specified strike price by paying a premium. The Buyer of a Call has the Right but not the Obligation to Purchase the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Call has the obligation of selling the Underlying Asset at the specified Strike price.

.What is a Put?

Put is the Right but not the obligation to sell the underlying Asset at the specified strike price by paying a premium. The Buyer of a Put has the Right but not the Obligation to Sell the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Put has the obligation of Buying the Underlying Asset at the specified Strike price.

. What is a strike Price?

It is the Price at which the underlying Asset is Agreed to be Bought or sold.

. What is a premium?

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

. How is Options trading different from Futures trading?

In case of Futures the Buyer has an unlimited loss or profit potential whereas the buyer of an option has an unlimited profit and Limited downside. The Seller of a Futures has an Unlimited loss or profit potential but the seller of an option has a Limited profit but Unlimited Downside.

. What are different types of Options?

American Options: American Options are Options that can be exercise at any time upto the expiration date.

European Options: European Options are the Options which expired on the expiry date itself.

. How is Options Contract Defined?

An European Put CRUDE Options expiring on 30 May 2022 with a strike price of 8000 is described as OPT-CRUDE-30-May-2022-8000-PE. OPT denotes Option, CRUDE is the commodity, 30-May-2022 is the expiry date of the contract, 8000 is the strike price and PE denotes it is an European Put option.

. Which underlyings are eligible for Commodities options trading? Why is the underlying list restricted to specific underlying commodities only?

At present we have enabled selected underlyings for trading in commodity options. Only those underlyings which meet the criteria as defined from time to time by ICICIdirect risk management policy will be enabled. ICICI Securities at its sole discretion may enable or disable any particular underlying for trading in Commodity Options. Please refer Commodity List at ICICIdirect.com for enabled Commodity Options underlying.

. Which contracts under an underlying commodity are enabled for Options trading in Commodities derivatives? Why is the contract list restricted to specific contracts only under various underlying?

ICICIdirect enables selected contracts under various underlying commodities for trading in options. Only those contracts, which meet the criteria on liquidity and volume are considered. 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 at the discretion of ICICIdirect from time to time.

.Can an enabled contract be disabled later?

Yes, it is possible that ICICIdirect disable 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.

. Where can I view commodity Options contracts?

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

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

In case of Options trading corresponding commodity futures becomes the “Underlying” eg . Fut-CRUDE-19-Apr-2022 will be underlying for “OPT-CRUDE-14-Apr-2022-7000-CE” , “OPT-CRUDE-14-Apr-2022-7000-PE” .

. How do I place a Commodity Options buy/sell order?

In 'Commodity' segment click on "Place Order" tab and select Options product, post which you need to define the Underlying. On clicking on "Select contract", the whole list of contracts available in the given underlying expiring in different months would be displayed. Depending on your interest, you can select one of the contracts by clicking on buy / sell link. You need to define the order type i.e. market or limit, Order Validity i.e. Day or IOC (Immediate or Cancel) or GTC (Good Till Cancelled) or GTD (Good Till Date), limit price and stop loss trigger price if any

. Can I choose to enter Quantity in terms of Lot Size or number of Lots at the time of placing Order?

Yes. There are two options as below:

1) Quantity

If you choose to take position by selecting quantity, please follow the below steps:

Step 1: Enter the quantity in terms of lot size you wish to place order or take the position for.
Step 2: Click anywhere outside the box, the number of lots will be auto populated against the 'Lots' field.

2) Lots

If you choose to take position by selecting number of Lots, please follow the below steps:

Step 1: Enable the 'Lots' field
Step 2: Enter the number of Lots you wish to place order or to take the position for.
Step 3: Click anywhere outside the box, the quantity in terms of Lot size will be auto populated against the 'Quantity' field.

. Where can I see the Contract Specific Information?

You will be able to see the contract specific Information under 'Select Contract' section on Place Order and also on the underlying list on clicking on the Underlying code. For more details on Exchange's Contract specification you may visit www.mcxindia.com. Sample link for Gold commodity is https://www.mcxindia.com/products/bullion/gold

. What forms of Margins are acceptable for placing orders or taking commodity Options positions?

In order to place an order in commodity options or taking position, margin can be given in the form of Cash (by way of allocation of funds from your bank account)

.Will I be able to Cancel & Modify my Orders?

Yes, you will have an option to Cancel and Modify all your pending Orders or Part Executed Pending Order. Cancellation is allowed for complete remaining quantity of your pending orders. In case of Modification, you can choose to modify Quantity/Lots, Price or convert from Stop Loss to Regular for pending order at exchange end. In case status of Order is changed at exchange end then an appropriate message will be displayed while you try to cancel or modify.

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

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

. Is the margin requirement uniform for all Commodities?

It may not be so. Margin amount required may differ from commodity to commodity based on the risk involved in the Commodity and your portfolio that exists for the commodity, which depends upon the liquidity and volatility of the respective commodity besides the general market conditions. For example, 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.

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

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-CRUDE-15-JUNE-2022-8000-PE for 1 lot (100 Quantity) at a Limit price of 50 would attract margin of Quantity * Price at Rs. 5000/-.

. 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- -CRUDE-15-JUNE-2022-PE for 1 Lot (100 quantity) and likely execution rate based on ASK prices available in market at that point of time is Rs 50, then margin will be blocked at order placement would be Rs 5000 (100 * Rs. 50). However, since ASK and BID prices are subject to change anytime, hence the execution of the order may happen at different price (say Rs. 52). 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 ,5200 (100*Rs 52). If sufficient free limit is not available in limit allocation then Commodity limit will be negative to the tune of Rs. 200.

. How is Margin calculated on Sell orders in option?

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 Commodity. You can check the margin amount required on your underlying portfolio by visiting the "Margin Calculator" under Commodity section of the trading page on www.icicidirect.com

. What are the margins required and how are they calculated?

The margin amount is calculated by arriving at the SPAN margin using the Standardized Portfolio Analysis of Risk (SPAN) system used by the Exchange for margin computation plus the Extreme Loss Margin plus other Margins by Exchange and any additional margin required by ICICI Securities as per its risk management policy. Extreme Loss Margin is the margin amount required on pending orders at market or limit price by client and on additional position based on the Average price/Base price of the relevant underlying commodity contract which is added to arrive at initial Margin. In addition, other margins which are Additional, Special and Concentration Margin as prescribed by exchange are levied. Initial Margin would also include such other additional margin as may be specified by ICICI Securities from time to time. Over and above the Initial Margin, I-Sec would require the notional loss on the portfolio at latest Current Market Price as margin to cover the risk and also safeguard your positions from being squared off intraday 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 which returns the SPAN Margin required from time to time. In case of Options the Extreme Loss Margin and other margins is calculated based upon the spot price of corresponding Futures contract.

. 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.

. 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.

. 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.

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

Squaring off a position means closing out a Commodity Options position. For example, if you have Options buy position of 10 GOLD expiring on 20-Apr-2020, squaring off this position would mean taking sell position in 10 GOLD expiring on 20-Apr-2020 on or prior to 20-Apr-2020. The order placed for squaring off an open position is called a cover order.

. 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 commodity. It may so happen that you have taken your position and Rs. 90000 margin is taken for the same. But later on due to the increased volatility in the prices, the margin is increased to Rs. 95000. In that scenario, you will have to Add Margin or allocate additional funds to continue with open position. Otherwise it may come in MTM loop and may 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.

. 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.

. Can I modify my square off order placed in disabled underlyings?

Yes. You may visit the online order book to modify details of your pending square off order under disabled underlying. However, you cannot modify details of pending square off order under disabled contract. Please note you will be able to modify the quantity downwards and upwards only up to the net open position considering the square off orders already placed for such position.

Example: 1) You have a position of 1000 quantity in CRUDE which is a disabled underlying and you have two pending square off orders of 500 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 1000 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 1000 quantity in CRUDE which is a disabled underlying and you have one pending square off order of 500 quantity. You can modify all eligible details of this pending square off order and the quantity can be modified upwards only upto 1000 i.e. to the extent of net position quantity.

. 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.

. Where and how is my margin calculated displayed for each commodity?

Margins are calculated taking the entire orders/positions i.e. all Commodity options pending order(s) and open position(s) under a specific underlying portfolio and not for each Commodity options contract. Hence, one consolidated margin amount would be displayed against each underlying portfolio on your open positions page under the Commodity trading section of www.icicidirect.com

. How do I see my open positions in Commodity options contracts?

You can view all open commodity derivative positions by clicking on Commodity > Open Position where you will be able to see FUT/OPT product tab which will display both Futures and Options position. The commodity open positions page gives details such as contract details, Position, open position quantity, Quantity unit , pending Buy/Sell order quantity, Last Traded price, Trigger Price , Actions , total margin blocked, Available Margin , Devolvement Margin Blocked / required, minimum margin required and available margin at underlying portfolio-group level. Further under Action column you will have the links namely Square off, Square off at Market, My MTM and Add Margin.

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

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

For Options:
Average price column will always display the weighted average trade price of the options contract position irrespective of whether position taken during the day or carried forward as open position on next day.

. 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" or “Square off at Market” on the "Open Position" page.

. What is meant by Minimum Margin?

Minimum Margin is the margin amount, you should have available with us 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.

. 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 commodity separately.

. 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 Commodity Futures contract positions and short option contract positions within an underlying would be considered for computing the available margin at an underlying portfolio level.

. 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 Commodity section.

. What would be the suitable time to check required margins*?

Margins should be checked regularly during the trading day and in case a position is carried forward to next trading day then it could be checked prior to opening of the market. For a carried forward position, it could be checked prior to opening of the trading in commodities market, say between 8:30 AM and 9:00 AM. A customer can check the available margin and minimum margin along with the trigger price. *Margin may differ subject to receipt of file from exchanges and other system related issues.

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

If available margin on any open position is highlighted in red colour, it indicates that the available margin on that position has fallen and is very close of breaching the minimum margin requirement. If available margin falls below the minimum margin required on that position, then such 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, on best effort basis. 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 as the Available Margin is subject to change on every change in CMP. Once the position gets displayed in red colour, colour of such position shall be updated only after intraday MTM process is run by I-Sec or by client.

. What is My MTM link given on Commodity 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 Commodity open positions page to check whether your position is likely to get squared off during the intraday 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 intraday MTM square off process is run by I-Sec. If your Available Margin is more than Minimum Margin, then no action will be taken on your commodity underlying portfolio on clicking the My MTM link.

. 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.

. 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 orders in that underlying-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.

1. Cancel all pending orders in that underlying portfolio-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 and/or at the discretion in near month contract first in that underlying portfolio 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 portfolio 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 portfolio group are 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.

. 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.

. What is the Trigger price displayed on Open Position page for option 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. Please note, Trigger Price would be displayed on Open position page only in case there is marginable position in a single contract in an underlying. However, you can continue to track your positions for intraday mark to market process at portfolio level on the basis of Available Margin and Minimum Margin. Accordingly, you can allocate additional funds if Available Margin amount is displayed with red colour. Trigger price is a price displayed for ease in tracking the position for any mark to market margin shortfall and will be just an indicative that your position may likely to come under the mark to market process and may get squared off if LTP breaches the indicated trigger price.

. Will the Trigger Price be displayed against all the Open positions?

Trigger Price would be displayed only in case there is marginable position in a single contract in an underlying. Hence, Trigger Price may not be displayed against all Options open positions in scenarios where there is Option Buy position, when additional future or option position/order(s) is created with same/different flow in same underlying & different contract since, in SPAN there is common open positions page and also Intraday Mark to Market process is at underlying portfolio level including Futures & Short options. In such cases, 'NA' will be displayed under Trigger Price column. However, in case of Option Buy Position Trigger price column will be displayed blank.

. How is the Trigger Price calculated for Sell Call positions?

As soon as you place a Sell call order, which results in a position, a Trigger price is calculated (as per the formula given below) which is displayed in the Open positions book. This Trigger Price is just for tracking the positions and would be an indicative that whenever the Underlying price of the commodity goes above the Trigger price in case of Sell Call, the Contract may likely to come in the MTM loop. Please note, Trigger Price would be displayed on Open position page only in case there is marginable position in a single contract in an underlying. Trigger Price for Sell Call position = Selling price / Closing price of Previous day in case of carry forward position + ((Blocked Margin - Minimum Margin)/ Open Position Quantity).

For Example:

Say you have sold 100 quantity of Option- CRUDE-14-Apr-2022-9000-CE at Rs. 400 where the Margin Blocked against the position (Let’s say @ 21.5% with underlying futures trading at 9000) is 193500 and minimum margin is 180900.

Trigger Price calculation for Option Sell Positions : Selling price / Closing price of previous day in case
of carry forward position of contract + ((Blocked Margin – Minimum Margin) / Open Position Quantity).

Trigger Price = 400 + {(193500 – 180900) / 100} = 536

. 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/order quantity in same contract, partial square off of existing position quantity, change in margins by exchange, add Margin. Also, in case there is existing position with additional order(s) in same contract then Trigger Price would be recalculated on any change in margin value due to events like order modification, cancellation, rejection, order expiry etc

. What are the order types in Commodity Options?

You can place Regular and Stop Loss Order in commodity options as provided by Exchange.

. What is a Stop Loss order in commodity options?

A Stop loss order allows the client to place an order which gets activated only when the market price of the relevant security reaches or crosses a threshold price specified by the investor in the form of 'Stop Loss Trigger Price'. When a stop loss trigger price (SLTP) is specified in a limit order, the order becomes one which is conditional on the market price of the contract crossing the specified SLTP. The order remains passive (i.e. not eligible for execution) till the condition is satisfied. Cloud Order eligible for execution by being taken up in the matching process of the exchange) and then on behaves like a normal limit order. It is used as a tool to limit the maximum loss on a position.

Examples:

Stop Loss Buy Order 'A' short sells 2500 Quantity (1 lot = 2500 qty) of Copper contract at Rs 325 in expectation that the price will fall. However, in the event the price rises above his buy price 'A' would like to limit his losses. 'A' may place a limit buy order specifying a Stop loss trigger price of Rs 345, a limit price of Rs 350 and last traded price 340. The stop loss trigger price (SLTP) has to be between the last traded price and the buy limit price. Once the market price of Copper breaches the SLTP i.e. Rs 345, the order gets converted to a limit buy order at Rs 350.

Stop Loss Sell Order 'A' buys 2500 Quantity of Copper contract at Rs 325 in expectation that the price will rise. However, in the event the price falls, 'A' would like to limit his his losses. 'A' may place a limit sell order specifying a Stop loss trigger price of Rs 305, a limit price of Rs 300 and last traded price is at 310 The stop loss trigger price has to be between the limit price and the last traded price at the time of placing the stop loss order. Once the last traded price touches or crosses Rs. 305, the order gets converted into a limit sell order at Rs. 300.
Important
Please note that in a buy order the SLTP cannot be less than the last traded price. This is treated as a normal order because the condition that the last traded price should exceed the stop loss trigger price for a buy order is already satisfied. Similarly, in case of a stop loss sell order the SLTP should not be greater than the last traded price for the same reason.

. What are "Day", "Good Till Cancel”, “Good Till Date" and "Immediate or Cancel" orders?

Exchange allows different order validities for orders under commodities options segment and details are as below:

1. Day/End of Session orders are orders that remain valid only for one trading session until executed or cancelled. Any unexecuted order pending at the end of the trading is expired.

2. Good till Cancel (GTC) order will stay in system till the order is cancelled by you or by I-SEC or by Exchange for any reason. The maximum number of days for which the GTC order can remain in the system is till maximum stipulated time by I-Sec, if any or Contract Expiry whichever is earlier.

3. Good Till Date (GTD) order allows the user to specify the date till which the order should stay in the system if not executed or cancelled/closed by I-Sec or Exchange for any reason. These orders are available for execution till end of date indicated in the order or till maximum stipulated time as decided by I-Sec or till last trading day of the contract, whichever is earlier.

The order expiry on the last valid date of GTC/GTD orders may take some time on account of day-end reconciliation processes. Since there is a stray possibility that the order may actually have got 'executed' though it is showing as 'ordered' on the website, modification/cancellation of the order is permitted and the order is considered as a valid order for margin calculation purposes till the order is 'expired'.

An Immediate or Cancel (IOC) orders will be immediately cancelled if not executed once the order reaches exchange. Such orders will not remain in the exchange order book and the updated status will reflect on the online order book in your account. Partial match is possible for the order and the unmatched portion of the order is cancelled immediately.

. Will there be any early closure of my GTC and GTD Orders by Exchange or I-Sec and what are the likely reasons?

Yes, your GTC & GTD orders may get cancelled or closed earlier due to following reasons:

1) By Exchange: In case your GTC & GTD orders are outside the daily price range, self-trade or any other reason as may be deemed fit by Exchange.

2) By I-Sec: In case you have not kept sufficient margin for Margin Calls during the day, in case of EOS for early closure of position or any other reason as may be deemed fit by ICICI Securities for risk management or recovery purpose ICICI Securities may cancel your GTC & GTD orders.

. Is there any Client Wise Position Limits for Agri and Non Agri Commodities?

Yes, as mandated by Exchange, there is near month client wise position limit for agri commodities and Overall Client wise position limit applicable for both agri and non agri commodities. In case Near Month Client wise position limit is breached then I-Sec at its discretion reserves the right of not allowing fresh order placement in that particular commodity's near month contract. In case Overall Client wise position limit is breached then I-Sec at its discretion reserves the right of not allowing fresh order placement in that particular commodity.

. Is there any Commodity Wise Quantity Wise Limit across all client in Commodities?

Yes, as mandated by exchange, there is a commodity wise quantity wise limit across all clients. In case this limit is breached then I-Sec at its sole discretion reserves the right of not allowing fresh order placement in that particular underlying commodity across all clients.

e) Settlement of Commodities - Cash Settled and Physically settled

. How do I know if any Underlying Commodity is Physically Settled?

You can visit on Commodity Place Order page and post clicking on Select Contract, if 'P' is mentioned in the 'Delivery Option' then that underlying commodity is physically settled. If 'C' is mentioned, then that underlying commodity is cash settled.

. Can I take physical delivery of commodities?

There are commodities which are Cash Settled and there are commodities which are physically settled. Please note, currently ICICI Securities is offering only cash settled irrespective or cash settled or physically settled. Hence, you are requested to square off your position before the delivery gets assigned to your position. Please note, ICICI Securities Ltd. will square off your open position in the near month expiring contracts in the Underlying Commodity one day prior to beginning of the tender period start date and will be at the discretion of I-Sec basis the internal risk management policy (Physically deliverable commodities) or prior to expiry day (Cash Settled commodities), at its sole discretion based on the risk management policy.

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

1. Physical Settled: As mentioned in the above FAQ, you should square off the physically settled positions before the delivery gets assigned to your positions. Please note, ICICI Securities Ltd. will square off your open position in the near month expiring contracts in the Underlying Commodity one day prior to beginning of the tender period start date and will be at the discretion of I-Sec basis the internal risk management policy.
2. Cash Settled: In case of cash settled contracts you can square off your positions one day before expiry of the contract. ICICI Securities will run EOS as per the time prescribed by the risk management policy of ICICI Securities from time to time, one day before expiry of the contract. Margin blocked on such expired position will also be released and added into your trading limits after adjusting profit/loss on close out. However, it is at the discretion of ICICI Securities to close the position earlier than the expiry even in case of cash settled contracts where it will be a risk management call to square off the position before the expiry, the same will be notified to you from time to time.

. What can I do to my positions in expiring near month contracts eligible for physical delivery?

As mentioned above you are required to Square off your open positions likely to get marked for delivery in expiring near month contracts before the tender period or till such time I-Sec runs the End of Settlement (EOS) square off process to close all open positions on best effort basis prior to ensure that there is no delivery marked against any open position.

. What will I-Sec do if I don't take any action on my positions in expiring futures contracts eligible for physical delivery?

If you don't take any action then in order to avoid the obligation of physical delivery, I-Sec, at its sole discretion, will run the End of Settlement (EOS) process for Physical Settled delivery based Underlyings commodities and do the below on best effort basis:

a. Cancel all your fresh and cover pending orders against the expiring near month contracts in such physical settled underlying Commodities including GTC or GTD orders.

b. Square off all your near month expiring open positions in such physical settled delivery based underlying commodities.

I-Sec EOS process shall consider all open positions in the near month expiring contracts which are about to enter the tender period and try to Square off on best effort basis in case you have not already squared off your positions in such contracts. The EOS will be run one day prior to beginning of the tender period start date and will be at the discretion of I-Sec basis the internal risk management policy. You are requested to ensure prior square off of such open positions and avoid keeping positions open for delivery or for I-Sec EOS process handling for closure.

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.

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

I-Sec reserves the right to run the EOS process for one or more or all physical settled underlying commodities 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 commodity's expiring contract or run this process for all underlying commodities expiring contracts. This will depend on the liquidity and internal risk management criteria of I-Sec.

Kindly note in cases like adhoc expiry notified by exchange etc. I-Sec reserve right of running EOS process in all contracts in that particular underlying.

. How will I come to know what action I-Sec has taken on my positions in expiring contracts eligible for physical settlement?

You can find the action taken by I-Sec by viewing your Order Book and closure of position on open position page. You can refer the remarks in Order log for System placed cancellation or Square off initiated by I-Sec on your behalf.

. Post cancellation and square off action taken by I-Sec, can I again take positions in those 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.

. What will happen in case my positions remain open in expiring contracts of underlying commodities 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 commodities as required by exchange to meet the physical Settlement obligation.

f) Commodity Margin Debit/Credit Process

Top

. On what positions of commodity futures would the Margin be debited?

The Margins would be debited on your commodity Futures buy open positions, commodity Futures sell open positions.

. On what positions of commodity options would the Margin be debited?

The Margins would be debited on your commodity option sell open positions.

. When will the Margin be debited from my linked bank account?

The Margin shall be debited from your linked bank account at end of the day from your Commodity segment allocation to the extent of limit utilized.

. When can the blocked margin will get released?

At End of the day.

. Can I withdraw the margin during the day?

Yes. You can withdraw the margin amount between Monday to Friday.

. How do I withdraw my Margin amount lying with ICICI Securities?

To withdraw the deposited margin amount with ICICI Securities, you need to place the release margin request to the extent of free margin available through the link available on the "I-Sec Margin Details" page on the Commodity section of I-Direct web site. The same can be done by squaring off the open positions. The released margin amount will immediately get credited to the commodity allocation of your linked bank account.

In case if there is no margin withdrawal request placed in your account, the excess free margin available with ICICI Securities at end of day would be credited to your linked bank account on the same day.

. Where can I see the Margin amount debited from my savings account?

You can see the Margin amount on the Commodity limit page under I-Sec Margin amount in your trading account.

g) Settlement Obligation in Commodity Futures

. What kind of settlement obligation will I have in Commodity futures?

You can have following kind of settlement obligation in futures market:

1. Brokerage: Any transaction you enter into will attract brokerage. Brokerage is debited in your account at the end of the day.

2. Profit and loss on squared off position

3. Profit and loss on EOD MTM on open position

. 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.

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

Commodity 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 subsequent day.

. 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 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.

. 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.

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

Allocation has to be done separately for Equity, Equity Derivatives (F&O), Currency and Commodity market. If you have allocated some funds for Equity, F&O and Currency, you will get corresponding trading limits only in these segments separately. Please note, for trading limits in Commodities, you will have to make separate allocation under the Commodity segment by using the "Allocate Funds" page.

h) Settlement Obligation in Commodity Options

. What kind of settlement obligation will I have in Options?

1. Brokerage: Any Transaction you enter into will attract brokerage. Brokerage is debited to your account at the end of the day.

2. Premium payable or Receivable

3. Exchange Transaction Charges

4. SEBI Turnover Fees

5. Goods and Services Tax (GST) on Brokerage, Exchange transaction charges and SEBI Turnover Fees

6. Commodity Transaction Tax

7. Stamp Duty

8. Other statutory levies, if any

.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:

. What happens if I have a margin / premium obligation towards the Exchange and have open position under Options Buy Call and/or Put?

In case client does not have sufficient free limit available in such cases system may even square off Options Buy positions to recover the required margin / premium obligation amount towards Exchange.

. Where can I see my settlement obligation?

You can see your obligation on 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.

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

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

Allocation has to be done separately for Equity, Equity Derivatives (F&O), Currency and Commodity market. If you have allocated some funds for Equity, F&O and Currency, you will get corresponding trading limits only in these segments separately. Please note, for trading limits in Commodities, you will have to make separate allocation under the Commodity segment by using the "Allocate Funds" page.

i) Withheld Profits

. What is Withheld Profit amount?

As per the regulatory requirement, Commodity Futures and Options profits that are booked but unsettled (i.e. payout/credit of funds is yet to be received), cannot be used to take further exposure as margin till the time they are settled by regulators. Accordingly, such cumulative net profit amount after adjusting the losses for that day across all products is withheld from your current limits. In case there is a cumulative net loss for the day post adjustments of all unsettled profits and losses then there will not be any amount withheld from limits till you make cumulative net profits which are unsettled. You can use this withheld amount for taking further exposure once the 'Withheld Profit' amount is released/added to your current limits which is done after the EOD processing when the next trade date is greater than or equal to the funds payout date.

. What is the significance of this Withheld Profits in trading?

You will not be allowed to use the 'Withheld Profit' amount as limits for taking further exposure*, till this amount is settled. *Further exposure would mean any new orders/positions or any actions requiring add margin against your existing open positions across all products under Futures and options. In case if you exit your long/buy option positions or enter new write/short options, the proceeds or credit of option premium will be withheld and will be added to 'Withheld Profits' and will be allowed only for Option Buy Position within same segment.

. Where can I see this 'Withheld Profit' amount?

You can go to the website www.icicidirect.com and visit the 'Limits' page under 'Commodity' section to view the field 'Withheld Profits' to know if any unsettled cumulative net profit amount is withheld.

. When will the withheld profit amount be settled/released/added in my limits? What all amounts would be used to calculate cumulative net profits or losses?

If there is a cumulative net profit amount which is unsettled then such amount will be withheld and will be released/added in your limits once the profits are settled or when the next trade date is greater than or equal to the pay-out date for the profit amount, whichever is earlier. All during the day or end of day profits or losses across all products in Commodity including premiums receivable or payable for Option product will be adjusted to arrive at the cumulative net profit/loss amount

. Whether profit/ loss of all Commodity products will be impacted?

Yes, profit/ loss across all Commodity products will be impacted and considered while arriving at the withheld profit amount which is unsettled.

. How will be Withheld Profits calculated during the day and end of the day?

• During the day: All profit amount along with the premium amount receivable shall be added and all losses along with the premium amount payable shall be deducted to arrive at the withheld profit amount.
• End of the day: On similar lines of during the day adjustments mentioned above, end of day profits in case of Future & options like EOD MTM profits, exercise profit etc. which are yet to settled with actual pay-out will be considered for arriving the withheld amount post adjustment of end of day losses like EOD MTM, closed out, assignment etc.

. What if I have profit in first trade and I want to place another order, can I use that profit to place another order during the day?

No, if you have profit during the day which are unsettled and pay-out is not received from exchange, you cannot use that profit for placing second order. You will have to keep sufficient limit under Commodity during the day for placing more trades.

. Can I use Withheld or unsettled Profits to add margin requirement for my positions during the day?

No, you cannot use the unsettled withheld profit amount if there is any margin requirement on your existing positions during the day. You will need to allocate sufficient funds limits under Commodity for this purpose.

. What is 'Net Premium Receivable'?

The field Net Premium Receivable is on the Commodity Limits page and it is the difference between the realized Option Sell Premium value and realized Option Buy Premium values for the trade date which is maintained on real time basis. Net Option premium receivable can be used for taking only Buy position in Options on the same trade date. It cannot be used for taking Buy and Sell positions in Futures and Option Sell

Formula: Net Premium Receivable = Option Sell Premium receivable - Option Buys Premium payable for the trade date (realized amounts only i.e. post execution)

Example: Initially Customer's existing current limit and Revised current limit is 0, this indicates that customers do not have any limit to take any positions in Commodity.
Case 1: In first case, Customer squares off his existing future positions and receives a premium of of Rs.10000, and margin of Rs 250000 is released in Customer's current limit and also in new limit column i.e. 'Revised Current Limit' and withheld column shows premium receivable of Rs. 10000.
Case 2: Customer places fresh buy order in Options and pays premium of Rs. 20000. Rs. 20000 is deducted from Current limit column as well as Revised limit column making it Rs.230000 from 250000.
Case 3:Customer sells fresh Options where he pays margin amount Rs.125000 and receives premium Rs.25000. The withheld profit including net premium is deducted from current limit column. The effect of net premium receivable for the day Rs.5000 is added in 'Revised current limit' column and in new column named, 'Net premium receivable 'column after required adjustment. In EOD all the amount is released in the customer's account and net premium receivable column will be reset on similar lines and logic of withheld limits for next trade date also the two limits existing and revised current limit will become same.

. Can I use the Net premium receivable from the Option trades which are unsettled and withheld to place another order under Commodity?

In case the Net Premium Receivable during the day results in net proceeds or credit of option premium after the above mentioned adjustments then this amount will be withheld and will be allowed only for Option Buy Position.

. What is 'Revised Current Limit For Option Buy'?

The field 'Revised current limit for Option Buy' is on the Commodity Limits page and it is similar to the existing 'Current Limit' but only net premium receivable is added to the existing Current Limits. It will be used for taking only Buy position in Options on the same trade date. It cannot be used for taking Buy and Sell positions in Futures.
Formula: Revised current limit (for options buy only) = Total Allocation (Bank Allocation + Securities + BFT + I-Sec Margin ) +– Total settlement Amount (Including margins, profit/ loss, premium amounts and TDS or any other settlement balances as existing) – Isec Withheld Amount + Max(Net Premium Receivable ,0)

. Will there be any amount withheld if there is a cumulative net loss?

No, there will be no amount withheld in case there is a cumulative net loss after all the adjustments mentioned above.

. When will the 'Withheld Profits' get released in limits?

Any 'Withheld Profits' on T day will be released after EOD processing, in case the next trade date and settlement/payout date is same and in case there is a holiday then the 'Withheld Profit' will be release in your limits when the next trade date is equal to or greater than the Settlement/Pay out date.

. What happens if the cumulative net amount at any point is Negative or Zero?

If the cumulative net amount arrived at any point in time is Negative or zero, then in that case there will be no 'Withheld Profits' amount in your limits.

. Will I be able to use the value in the Withheld Profits column for taking positions on next trade date?

Yes, the Withheld Profits will be available in your current limits on next trading day if the pay -out date is equal to next trade then you will be able to take position on the next trade day.

j) Specific FAQ on Exchange specified Clientwise limit

. What is the maximum exchange specified Clientwise limit allowed in Commodity segment?

Exchange has specified client level position limit for each underlying/Index. In case client has breached the exchange specified clientwise position limit then exchange will charge penalty or may take any other action. Hence, if client breaches the exchange specified clientwise position limit, then I-Sec will square off the excess position on best effort basis even if the client has sufficient margin on excess position. Kindly note that the primary responsibly will remain with the client only to not exceed the exchange specified client level position limit.

Kindly note that in case exchange charges any penalty in this regard, then the said penalty amount will be passed/recovered from the client.

k) Peak Margin Changes

. Why am I not able to de-allocate from Commodity cash allocation and I am getting an error pop up as 'Debit Peak Margin Now'?

As per the regulatory requirement, Peak Margin amount during the market hours is required to be collected from all the clients. In cases where peak margin amount is blocked from your bank account in commodity cash allocation, the same cannot be de-allocated until the peak margin amount is debited for the day. Once the peak margin amount is debited only then surplus funds, if any, can be de-allocated by you. In order to avoid the error of de-allocation, you can also debit peak margin amount or release the surplus funds, if any, by using ‘Debit Peak Margin Now‘ option on ‘I-Sec & Peak Margin Details’ page under ‘Commodity’ section or you can get redirected to this page by clicking ‘Debit Peak Margin Now ’ option in the pop up message if displayed while deallocating funds. In case you have not debited the peak margin amount then the same will be debited at the End of Day (EOD) process by I-Sec on best effort basis and surplus amount, if any, blocked under Commodity Cash allocation will be released. Also, in case you have squared off your position(s) intraday where peak margin is not required to be carried forward the peak margin amount debited will be released in the EOD process by I-Sec.

. Why is my Peak Margin amount higher than value of Executed Order(s)/Open Position(s)?

Your maximum limit utilized for the Trade Date is considered as Peak Margin amount. Peak Margin Amount once calculated doesn’t get reduced for the Trade Date (including cases of Limits released by order status change). E.g. Once you place the order, the limit gets utilized and considered in calculation of Peak Margin. Then even if this order gets cancelled/rejected/position is squared off and limits are released but Peak Margin Amount won’t get reduced for that Trade Date.

. Why are there additional entries in my statement/Ledger/Bank Account?

In Case Peak Margin is debited by you during market hours.
In case of Customer debiting the peak margin by using “Debit Peak Margin Now” option in “I-Sec & Peak Margin Details” tab in Commodity section , the peak margin amount will be instantly debited and credited.

In case Peak Margin is debited by I-Sec at End of Day Processes.
Irrespective whether you have debited Peak Margin during market hours the bsame will be debited by the I-Sec at EOD. Peak Margin amount will be debited in I-Sec Peak Margin Debit process and the subsequent process will credit/debit back the extra margin amount, if any, in comparison to actual peak margin to be debited for you. Depending upon the nature of transactions carried out there will be corresponding entries of peak margin debit and credit. However, original single Pay-in / Pay-Out entries will continue to appear as per existing practices for obligation settlement.

. Why is my Peak Margin amount showing positive value instead of zero even though there are zero trades placed during the day?

In case you have carried forward open marginable position from previous trade date then the peak margin column will display the total margin amount utilized to maintain those positions even though there are no trades placed on trade date. However, the actual peak margin for that trade date will be displayed in “Peak Margin to be debited” column which will be updated only when any fresh trade occurs for the day.

l) Settlement of Commodity Options

. Settlement of Commodities - Cash Settled and Physically settled

. What is the process of Settlement in Commodity Options on expiry at the exchange, i.e. MCX?

On expiry of Options contract, all ITM long Call and Put position shall devolve into underlying futures contract.

• long call position shall devolve into long position in the underlying futures contract
• long put position shall devolve into short position in the underlying futures contract
• short call position shall devolve into short position in the underlying futures contract
• short put position shall devolve into long position in the underlying futures contract

. What is an EOS in Commodity Options?

End of Settlement (EOS) is a process where I-Sec squares off an open position. In commodity options, I-Sec shall square off the open positions on Expiry date of option contract. A client can also square off an open position at its convenience prior to EOS by I-Sec. I-Sec will try to close the position in EOS on best effort basis. If position remains open, below action will be taken by I-Sec

• Intention for “Do not exercise” will be given for Long Open positions on best effort basis. As a result, such positions shall not result in any P&L.
• In case of long open positions where intention for “Do not exercise” has not been given and for Short open positions, devolved positions (on exchange) will be squared offline on next trading day at market rate.
• Profit and Loss arising out of such offline square off and EOD margin shortfall penalty for such open positions on expiry day and peak margin shortfall squared off position on next day of Expiry shall be borne by the client.
• ISEC would do EOS (End of Settlement) on best effort basis. In case, any of ITM positions remain open, we will continue and try to square off your positions till expiry of Option Contract. If ITM positions remain open at expiry of contract, same will be closed in DNE. For positions closed in DNE (Including deep OTM contracts) exchange doesn’t give any payouts.

.Does I-Sec offers devolvement of commodity Options?

No, Currently, I-Sec does not offer devolvement of Options into futures.

. Is there any margin requirement on maintaining all the Long Option positions all the way till expiry?

No, there is no margin requirement for maintaining all the long Option position.

. How are ITM Options open position identified?

ITM long Option positions are identified comparing the prevailing Last Traded Price (LTP) of the Futures contract and strike price of the long Option contracts as follows:

• i.(Long) Call: SPOT price > Strike price of the Options contract.
• ii.(Long) Put: SPOT price < Strike price of the Options contract.

. How could an open position in commodity Options be squared off on expiry?

Your position could be squared off before expiry by you or I-Sec on best effort basis (as mentioned in above FAQ).

. Post EOS done by I-Sec, can I again take positions in those contracts?

No. You cannot take any position in such commodity Options, as they will be disabled for trading for the entire further period till market close on the expiry day. However, you can take position in next expiry.

. Will my long ITM Options positions be squared off if devolvement margin is not available?

There is no requirement of allocating devolvement margin to maintain the positions .

. Can I square off my position in eligible Long Options position?

Yes, you can square off your long Option position.

. 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.

. How will I come to know if my position is ITM ?

You can monitor your position from open position page and compare the prevailing Futures LTP of the underlying with your contract strike price. Position is ITM in case:

• i.(Long) Call: SPOT price > Strike price of the options contract.
• ii.(Long) Put: SPOT price < Strike price of the options contract.

You are requested to keep sufficient limits, from 4 days before expiry to maintain the increased devolvement margin requirement, if applicable and safeguard your positions.

m) Shares as Margin

. Shares as Margin - SAM in commodity segment

. What forms of Margin are acceptable for taking Commodity positions?

For Commodity positions, margin can be given in the following forms:

a) Cash (by way of allocation of funds from your bank account)

b) Specified securities (by way of pledging securities allocated from your demat account in favor of I-Sec)

The limit granted is a sum of (a) & (b) and the margin is blocked on the individual positions on the overall basis and not in any proportion of (a) & (b).

Though securities limit is granted for exposure to Commodity positions, actual payment is required for settlement dues arising from mark-to-market losses on futures positions, premium payments for options bought, square off losses on futures, options positons and brokerage applicable on the transactions.

.When should cash be made available for settlement dues?

All futures obligations are settled by exchange on T+1 basis but the scheduled date of debit from your bank account is day T itself accordingly the cash needs to be made available for meeting any settlement dues

.What happens if cash is not made available for any settlement dues?

Pay-in is normally made from your allocation to Commodity segment from your bank account. In case this allocation is insufficient, ICICI Securities reserves the right to debit even unallocated clear funds available in the bank account.

In case the allocation for Commodity from your bank account is not sufficient to meet the pay-in obligations, ICICI Securities can sell appropriate quantity of securities pledged as margin. The proceeds of the securities sold on invocation will then be utilized to meet the pay-in obligations. i.e After sale of shares the funds will be first used to settle F&O dues followed by Equity Obligation then currency and then commodity.

.How do I deposit Securities as Margin?

Click on the 'Pledge & Create Limit' link on the 'Shares as Margin' Page available under the Commodity section, you will find all your securities available in your demat which are free to be pledged there. You can specify the quantity you wish to pledge and place a pledge request. After placing the pledge request, you will receive a link from the depository on your registered mobile number and email id, you can confirm and authenticate your pledge request through the OTP provided to avail your SAM limit.

.On depositing securities as margin, when do limits become available there against?

Limits become available against the shares deposited as margin after your pledge request has been successfully confirmed. You will be able to Move free securities limit directly from one segment to another i.e., any combination in Equity,F&O,Currency ,commodity from the 'Allocate Limit' link under the 'Shares As Margin' page.

.After depositing securities as margin, by how much do limits increase? Where can I view all securities deposited as margin?

On depositing securities, Commodity limits increase after your pledge request has been successfully confirmed by the 'Limit to be created' indicated on the 'Pledge & Create Limit' page. This is arrived at for each security as per the following formula:

(Quantity of the stock deposited * Valuation Price of the stock ) * (1 - Haircut% for the stock)

The valuation price and haircut% are specified by ICICI Securities. Generally, the previous day closing price is specified as the valuation price. The haircut% for all eligible stocks can be seen in the 'Stock List' page in the (Equity ,F & O ,Currency & commodity) section. The valuation price and the haircut% for all stocks available for deposit can also be seen in the ''Pledge & Create Limit' page.

The limit arising out of securities deposited can be seen in the Commodity page. Limit would be arrived by aggregating.

Commodity free limits = Allocation + BFT + ISEC Margin + Securities Allocation +/- Settlement obligation amount - Withheld profit amount

.What does "Pledge & Allocate to Commodity on the 'Pledge & Create Limit' page mean?

If you click on Pledge & Allocate to Commodity while placing pledge request, the limits will be allocated to Commodity Segment after the pledge request is confirmed.

.The limit arising out of securities deposited as margin changes every day and sometimes during the day also. Why?

This is because it is dependent on the valuation of the securities deposited as margin. The Commodity limits arising out of securities deposited as margin is arrived at as the summation of :

(Quantity of the stock deposited * Valuation Price of the stock ) * (1 - Haircut% for the stock)

Generally, the previous day closing price of a stock is specified as the valuation price. Hence, the limit arising out of securities deposited as margin is recalculated every day as per previous day closing price of the securities. Limit may also change on account of changes in haircut% effected by ICICI Securities. In some cases, the above changes may be carried out during trading hours also. These may lead to either an increase or a decrease in the limit arising from securities deposited as margin. ICICI Securities also reserves the right to withdraw the limit arising from any one or more of securities deposited as margin without assigning any reason.

Where the limit arising from securities deposited as margin reduces on account of the above, the margin available against the Commodity positions/orders is reduced from any one or more positions/orders at the discretion of ICICI Securities. This may result in some positions having less than the minimum margins in case of futures positions leading to square off of the futures positions/cancellation of the orders. The trigger price for squaring off the option positions is also recalculated leader to earlier squaring off of option positions/cancellation of option orders.

Therefore, where you have taken Commodity positions on the basis of limits arising from securities deposited as margin, you are advised to track the prices of such securities closely and ensure that sufficient margin is always made available for the positions/orders.

.What happens to the securities pledged as margin?

When you create a pledge on securities in favor of I-Sec, a separate request is created to pledge each security. The status of these requests can be tracked in the 'Status Book' sub-link under the 'Shares as Margin' link in the F&O and Equity, commodity and currency section. Till such time that the pledge creation is actually initiated by ICICI Securities on your behalf (i.e. the status changes from 'Requested' to 'In Process' status), the requested quantity appears as 'Pledge Requested Quantity' in the 'Demat Allocation' page in the Commodity section.

In case you make a further deposit of the same security before the pledge request is initiated on your behalf (i.e. is in 'Requested' status), only the pledge request quantity is increased instead of creating a new pledge request.

You can view the pledge order no. allotted by the Depository for each pledge creation here in the Status Book.

.How do I revoke securities pledged as Margin?

A link for 'Unpledged' appears against the 'Quantity Pledged' in the 'Pledged Securities' link under The 'Shares as Margin' page. You can click on the link and specify the quantity to be withdrawn. In case, in the 'Status Book' sub-link under the 'Shares as Margin' link in the Commodity section, there is already a 'Withdrawal' request pending to be initiated (i.e. in 'Requested' status), you will not be permitted to place a fresh withdrawal request; you can only increase the quantity to be withdrawn

In either case, note that Withdrawal is:

• (i).permissible only if the reduction in Securities limit arising out of reduction in the quantity deposited as margin is not beyond the current Commodity limit
• (ii).permitted only to the extent of quantity deposited has not already been sold either by ICICI Securities or by yourself (appearing as 'Block for Sale' in the 'Deposited Securities' page in the commodity section)

.After revocation of pledge, by how much do limits decrease?

On revocation of securities deposited as margin, commodity limit decreases immediately after successful withdrawal, by the

(Quantity of the stock being withdrawn* Valuation Price of the stock ) * (1 - Haircut% for the stock)

.What happens to the securities on revocation of pledge?

A separate request is created to initiate the revocation of the pledge(s). The status of this request can be tracked in the 'Status Book' sub-link under the 'Shares as Margin 'link in the Commodity section. However, the quantity revoked is immediately reduced from 'Quantity' in the 'Pledged Securities' page in the Commodity section. As a result, the securities limit also reduces.

Multiple pledge revocation may have to be initiated in case separate pledge order nos. by the Depository as a result of pledges being created at various points of time earlier. Once revocation is initiated (i.e. the status changes from 'Requested' to 'In Process' status), the same appear(s) in the 'Status Book' sub-link under the 'Shares as Margin' page in the Commodity section. Here, you can view the final status of the pledge closure(s) initiated. Once, the pledge closure(s) are completed, the quantity closed will reflect as free balance in your demat account. The withdrawn securities will be available for sale or transfer on the next day of the withdrawal.

.How does ICICI Securities go about selling my pledged securities in case I do not make cash available for any settlement dues?

ICICI Securities would invoke a pledge and place a 'Spot sell' order at 'market' for the required quantity of securities deposited as margin.

The sale proceeds of this sale will be utilized to meet the pay-in shortfall. Any excess realization will also be allocated for Commodity subject to the provisions of circulars, rules, regulations, Acts, FAQs etc. as laid down by exchanges/ SEBI/ depository from time to time. However, you can reduce the same if required. Normal 'spot' brokerage is applicable for such sales. Such orders can be viewed in the Commodity Order book (they will be identified as). The quantity so sold will appear as 'Block for Sale' in the 'Pledged Securities' page in the Commodity section.

ICICI Securities would invoke the securities pledged in favor of ICICI Securities to debit the shares from your demat account and meet the obligations to pay-in the securities. On invocation, the 'Quantity' in the 'Pledged Securities' page will reduce. Details of such invocations would appear in the 'Status Book' sub-link under the 'Shares as Margin' link in the Commodity section.

However, ICICI Securities may not resort to selling the deposited shares at its discretion including for reasons that the pay-in shortfall is insignificant.

.For a given shortfall which is less than potential sale proceeds of the entire securities deposited as margin, how does ICICI Securities determine which of the deposited securities to sell and how much?

To minimize the no. of sell orders, orders are first placed in respect of stocks which have the highest value (arising from greater quantity or greater prices). If the sale proceeds of the highest value stock does not appear to be sufficient to meet the pay-in obligations, the next highest value stock is taken up for sale.

For determining the quantity to be sold, the securities deposited as margin are valued at current market price.

For determining the quantity to be sold, the target amount to be realized is assumed to be higher by a sale margin to allow for possible price losses till the order reaches the market. The sale margin is standard for all the scrips enabled for 'Shares as Margin'

The quantity determined is rounded off to the nearest higher integer

For example,

Sale margin is specified as 2%
Client has a shortfall of pay-in Rs 3,00,000/-

Value of shares to be invoked will be 3, 06,000/-.

You have pledged the following shares :

In the above case, the following shares would be selected for invocation

.Can I also sell securities pledged as margin for eg. In case prices of the securities are going up?

Yes, you can.

'A link for 'Spot Sell' appears against the 'Quantity' In the 'Pledged Securities' link under 'Shares As Margin' page. You can click on the link and then place a spot sell order. These orders can also be limit orders. In this case, the sale proceeds will be allocated automatically for Commodity (you can reduce the same if required). Because of this, no reduction in securities limit occurs on placing the order. The quantity ordered to be sold will appear as 'Block for Sale'.

Of course, the sale is permitted only to the extent of quantity pledged that has not already been sold either by ICICI Securities or by yourself (appearing as 'Block for Sale' in the 'Pledged Securities ' page in the commodity section). However, if there is pending ''Revocation of pledge' request out of the 'pledged quantity', the quantity in that request is not permitted to be sold.

Spot brokerage is applicable on these sales. Such orders can be viewed in the Equity Order book (they will be identified as ) and modified/cancelled like other Equity orders.

ICICI Securities would invoke the securities pledged in favor of ICICI Securities to debit the shares from your demat account and meet the obligations to pay-in the securities. On invocation, the 'Quantity' in the 'Pledged Securities ' page will reduce. Details of such invocations would appear in the 'Pledge Book' sub-link under the 'Shares as Margin' link in the Commodity section.

.Are there any separate charges for the above transactions?

Yes, below pledge charges will be charged in accordance with depositories NSDL and CDSL. These charges are applicable on a per-ISIN basis in each instruction.

Type of Instruction	Pledging Charges in Rs. (Per ISIN in an instruction)
Shares as Margin : Margin Pledge Initiation/Closure/Invocation	20

.Can I place revocation and invocation of pledge requests simultaneously for the same scrip on the same date?

Yes, provided the status of first request (which can be either revocation or Invocation) is not shown as 'Requested/In process' in the Status Book.

.Can I place multiple revocation of pledge requests against the same scrip on same date?

Yes, you can place further revocation of pledge requests if the earlier request(s)do not show the status as �In Process". The system will not allow you to place further revocation of pledge request(s) till the processing is completed.

.How the delivery towards sell of SAM (Shares as Margin) Funded shares will be effected?

In case you sell the shares which are provided as Margin, ICICI Securities (I-Sec) shall invoke the pledge on such shares for meeting delivery obligation on sell transaction. This process will be followed irrespective of the fact whether the shares are being sold either by you /dealer or by risk trigger processed by I-Sec.

.How is Commodity free limits calculated?

Commodity free limits = Allocation + BFT + ISEC Margin + Securities Allocation +/- Settlement obligation amount - Withheld profit amount-Blocked Margins on positions or overnight order placement.

.Can I move my Securities (Allocation) from Commodity to other segments?

Yes, you can move your Securities (Allocation) from Commodity to other segments i.e. Equity, F&O or currency using ‘Move to’ functionality on Free limits page after selecting the segment and entering amount.

.There is no option of Net Withdrawal Balance (NWB), where can I keep my excess Securities Allocation?

Since, the Net Withdrawal Balance (NWB) functionality has been discontinued, you can keep your excess Securities Allocation in any segment using ‘Move to” functionality on Free limits page.

. I have sufficient Free limits balance in ‘Commodity’ segment but I am unable to move to other segment from Commodity Securities Allocation. Getting error as ‘Cannot de-allocate. Insufficient limits:’

The balance shown under Free limits is combined balance of Bank allocation and Securities Allocation. So, you can move only up to the Securities Allocation done by you in Commodity segment from Securities balance in Commodity free limits

n) Basket Order feature

. What is Basket Order?

A basket order is a facility provided to you which enables you to save orders in a Basket post entering the required order details and use each created basket to place multiple orders under same/different products at one go. Customers can create and save orders in baskets anytime post market or before market hours or even during market hours which can be used later for placing orders till expiry of the contracts. It is beneficial for the customers who wants to place a group of orders for different product type at one time and will also save customer's time as he need not enter all the order details each and every time he places an order. In addition, margins for saved order in the basket will also be displayed on the Basket order window itself which will be useful for customers who wants to check the margin upfront for the orders .

. In which products can I save and place Basket order?

You can save and place Basket Orders in Future,Options contracts of All Commodity underlying enabled for trading.

. At what time can I add Order in Basket?

You can add orders in Basket anytime during market hours as well as before or after market hours.

. How do I create and place Basket orders?

You can create and place Basket Orders as follows:

1. Click on 'Basket Order' tab under Commodity segment.
2. To create your Basket, click on 'Create Basket' button on 'Baskets' page.
3. Enter the Basket Name you wish to save in the 'Create New Basket' pop up and click on 'Proceed' button. This will open order entry window where you can Save the orders post entering the Order details.
4. Additional orders can be added in your Basket by using 'Add to Basket' button on basket order page.
5. You can Click on 'Place Order' button available on basket order page so as to proceed with placing orders which are saved in the Basket.

Please note, if you wish to place orders saved in the basket order sometime later then you can click on 'Save Basket' available on basket order page.

. What details will be displayed on the 'Baskets' Page?

Below details will be displayed on 'Baskets' page once the Basket is created:

1. 'Basket Name' as saved by you.
2. 'No of Contracts' to give the count of contracts/Orders saved in the basket.
3. 'Created on' will display the Date on which the Basket was created.
4. 'Delete' option.

. Can I delete an earlier created Basket(s)?

Yes, you can delete your saved Basket(s), by clicking the delete icon given on 'Baskets' page.

. Can I modify an earlier created Basket?

Yes, you can modify an earlier created Basket by clicking on the basket name displayed on the 'Baskets' page.

. How many Baskets can I create?

A maximum of 20 baskets can be created.

. How many orders can I add in one basket?

A maximum of 20 orders can be added to a particular basket.

. What is Required Margin and Final Margin displayed on Basket Order Page?

Required Margin: Required margin will display the margin which will be required to place all/selected orders in the Basket on clicking the View Margin link. This margin will not include any spread or hedge benefit.

Example: If you have added 1 lot Buy of FUT-CRUDE-17-Feb-2023 @ 6507 and 1 lot Sell of FUT-CRUDE-20-Mar-2023 @ 6555 in this case the required margin will display the order level margin required for placing these orders. Hence, the required margin will be calculated as follows: Total SPAN Margin required without considering hedge benefit for placing the orders is 430100 and Initial Exposure Margin % is 2.25% , 3.50% for FUT-CRUDE-17-Feb-2023 , FUT-CRUDE-20-Mar-2023 respectively with additional flat value margin sell of rs 10000 on FUT-CRUDE-20-Mar-2023. Initial Exposure Margin = ((100*6507)*2.25% + (100*6555)*3.5%) = 37583.25 So the required margin displayed for the above basket orders will be = 430100+10000+37583.25 = 477683.25 INR

Final Margin: Final margin is the position level margin including spread benefit or hedge benefit that will be eventually blocked after the order execution at the traded/executed prices.

Example: If you have added 1 lot Buy of FUT-CRUDE-17-Feb-2023 @ 6507 and 1 lot Sell of FUT-CRUDE-20-Mar-2023 @ 6555 in a basket, so in this case the final margin will be displayed with the spread/hedge benefit which will be received on execution of the orders. Hence, the final margin in case of SPAN accounts will be calculated as follows: Total SPAN Margin required is 270357 and Initial Exposure Margin % is 2.25% , 3.50% for FUT-CRUDE-17-Feb-2023 , FUT-CRUDE-20-Mar-2023 respectively with additional flat value margin sell of rs 10000 on FUT-CRUDE-20-Mar-2023. Initial Exposure Margin = ((100*6507)*2.25% + (100*6555)*3.5%) = 37583.25 So the required margin displayed for the above basket orders will be = 270357+10000+37583.25 = 317940 INR

Please note, Option Buy Premium will be included in the Required margin and Final margin value. Also, adding long option positions might have margin benefits on futures and short option positions which will be reflected in Final Margin value.

. What is 'View Margin' link on basket order page?

You can click on 'View Margin' link available on the Basket order page in order to view the 'Total Required Margin' and 'Final Margin' and can also be used in order to view the updated values of margin required & final margins post modification or deletion of orders in the basket.

. Do I need to place all the orders saved in the Basket?

You can select the orders out of the saved orders in the basket which you wish to place. This can be done using the checkbox available against each saved order under 'Select All' column. You can untick the checkbox to unselect the order and tick the check box to select the Order. Also, you can select all the orders using the checkbox available under the 'Select All' column header.

. Can I modify the orders previously saved in the basket?

Yes, you can modify the orders previously saved in the Basket using the edit icon under 'Action' column available on basket order page.

. Can I delete the orders previously saved in the basket?

Yes, you can delete the orders previously saved in the Basket using the delete icon under 'Action' column available on basket order page.

. Which Underlyings are eligible for Basket Orders?

All the underlying enabled for trading in Commodity segment are enabled for Basket Orders.

. Where can I view my saved Baskets?

The saved Baskets can be viewed under the 'Basket Order' tab link in the Commodity segment.