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    FAQ(Global Indices)    Specific FAQs on BSE

. What is Futures Trading at ICICIDirect.com?

As a customer of ICICIdirect now, you can trade on index futures on NSE or BSE and stock futures on NSE. It comes with a comprehensive tracking cum risk management solution to give you enhanced leveraging on your trading limits.

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

To take the buy/sell position on index/stock futures, you have to place certain % of order value as margin. 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.


. On which exchanges will I be able to buy and sell in futures market?
ICICIdirect offers its customers execution capability on the National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange (BSE). Please refer the last section on Specific FAQs with regards to BSE to know the main differences with regards to F&O trading on BSE.


. How is futures trading different from margin trading?

While buy/sell transactions in margin segment have to be squared off on the same day, buy/sell position in the futures segment can be continued till the expiry of the respective contract and squared off any time during the contract life.

Margin positions can even be converted to delivery if you have the requisite trading limits in case of buy positions and required number of shares in your DP in case of sell position. There is no such facility available in case of futures position, since all futures transactions are cash settled as per the current regulations. If you wish to convert your future positions into delivery position, you will have to first square off your transaction in future market and then take cash position in cash market.

Another important difference is the availability of even index contracts in futures trading. You can even buy/sell indices like NIFTY in case of futures in NSE, whereas in case of margin, you can take positions only in stocks.


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

At present, we have enabled selected stocks for trading in the futures segment. Only those stocks, which meet the criteria on liquidity and volume have been considered for futures trading.


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

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


. Can an enabled contract be disabled later ?

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


. 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 Banned underlyings?

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

. Where can I view futures contracts?

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


. How is the futures contract defined?

ACC future contract expiring on 27th Feb, 2002 is defined as "Fut-ACC-27-Feb-2002". Wherein "Fut" stands for Futures as derivatives product, "ACC" for underlying stock and "27-Feb-2002" for expiry date.

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

An index or stock enabled for trading on futures is called an "Underlying" e.g. NIFTY (index) and ACC (stock). There may be various tradable contract for the same underlying based on its different expiration period. For example Fut - ACC - 27 Feb 2002, Fut - ACC - 27 Mar 2002 and Fut - ACC - 27 Apr 2002 are "contracts" available for trading in futures having ACC as "underlying".


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

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


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

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


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

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


. Is the margin % uniform for all stocks?

It may not be so. Margin percentage may differ from stock to stock based on the risk involved in the stock, which depends upon the liquidity and volatility of the respective stock besides the general market conditions. Normally index futures would attract less margin than the stock futures due to comparatively less volatile in nature. But all contracts within the same underlying would attract same margin %.


. Can margin be changed during the life of contract?

Yes, margin % can be changed during the life of the contract depending on the volatility in the market. It may so happen that you have taken your position and 25% margin is taken for the same. But later on due to the increased volatility in the prices, the margin % is increased to 30%. In that scenario, you will have to allocate additional funds to continue with open position. Otherwise it may come in MTM loop and squared off because of insufficient margin. It is advisable to keep higher allocation 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 futures position. For example, if you have futures buy position of 500 Reliance expiring on 27th Feb 2002, squaring off this position would mean taking sell position in 500 Reliance expiring on 27th Feb 2002 on or prior to 27th Feb 2002. The order placed for squaring off an open position is called a cover order.


. 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, value of all buy orders and sell orders (in the same underlying-group) is arrived at . Margin is levied on the higher of two i.e. if buy orders value is higher than sell order value, only buy orders will be margined and vice versa. In other words, margin is levied at the maximum marginable order value in the same underlying.

For example, you have placed the following buy and sell orders.

Contract Details

Buy Orders

Sell Orders

 

Qty

Rate

Order Value

Qty

Rate

Order Value

Fut - ACC- 27 Feb 2002

100

100

10000

     

Fut - ACC- 26 Mar 2002

100

155

15500

200

160

32000

Fut - ACC- 29 Apr 2002

     

100

16

16300

Total

200

 

25500

300

 

48300

As mentions above, the higher of buy and sell order value is margined. In the above given example, sell order value is greater than buy order value. Hence margin would be levied at specified margin % on Rs. 48300.

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

In such case, first the marginable buy/sell order quantity has to be arrived at. Marginable buy order qty is arrived at by deducting the open net sell position at underlying-group level from the buy order quantity at underlying-group level. Similarly marginable sell order qty is arrived at by deducting the open net buy position at underlying-group level from the sell order quantity at underlying-group level. Marginable buy / sell order value is then arrived at by multiplying the respective buy / sell order weighted average price with marginable buy / sell quantity. For order level margin, marginable buy order value and marginable sell order value would be compared and higher of two would be margined.

For example, there is an open sell position of 100 shares in "Fut - ACC- 29 Apr 2002". Marginable buy and sell order quantity would be 100 and 300 respectively. Marginable buy and sell order value would be Rs. 12750 and Rs. 48300 respectively.


.How is the initial margin (IM) on open position is maintained?

The same margin % applicable for orders will be levied at position level also. Position level margin is arrived at by applying the IM% on the value of net open position.

For example, you have open buy position in Fut - ACC- 26 Mar 2002 for 100 shares @ 150 and IM % for ACC is 25%. In that case, margin at position level would be 15000 * 25% = 3750/-. Moreover, benefit of calendar spread margin may also be available to you in case of spread position.

. What is meant by calendar spread?

Calendar spread means risk off-setting positions in contracts expiring on different dates in the same underlying. For example, you take buy position for 200 shares in Fut - ACC- 26 Mar 2002 @ 150 and sell position for 100 shares in Fut - ACC- 29 Apr 2002 @160. 100 buy position in Fut - ACC- 26 Mar 2002 and 100 sell position in Fut - ACC- 29 Apr 2002 forms a spread against each other and hence called spread position.This spread position would be levied spread margin % for margin calculation instead of IM%. In this example, the balance 100 shares buy position in Fut - ACC- 26 Mar 2002 would be non-spread position and would attract initial margin.

. How is the margin calculation done in case of calendar spread?

Spread position value is calculated by multiplying the weighted average price of position in far month contract and spread position quantity. Spread margin % is then applied to spread position value to arrive at spread margin.

In the above mentioned example margin position of 100 shares in Future - ACC- 26 Mar 2002 will be subjected to IM% and 100 spread position quantity would attract spread margin %. However, you will able to view only overall margin figure on open position page. Assuming IM and spread margin at 20% and 10% respectively, overall margin to be calculated as follows:

(a) Spread Margin

100*160*10%

Rs. 1600

(b) Non-Spread Margin

100*150*20%

Rs. 3000

(c) Overall Margin

a+b

Rs. 4600

. Can spread position be formed among all the contracts in existence?

ICICIdirect would decide the contracts, which can form spread positions against each other. Only those contracts, which meet the criteria on liquidity and volume will be considered for spread positions. Technically, the stocks having low impact cost are included in spread definition. Separate margin is maintained and displayed for spread and non-spread contracts.

Lets assume that Future - ACC- 27 Feb 2002 and Future - ACC- 26 Mar 2002 are included in spread definition and Future - ACC- 29 Apr 2002 is kept out of spread definition. If you take buy position for 200 in Future - ACC- 27 Feb 2002 and sell position for 100 in Future - ACC- 26 Mar 2002, 100 buy position and 100 sell position would form spread. If you take buy position for 200 in Future - ACC- 26 Mar 2002 and sell position for 100 in Future - ACC- 29 Apr 2002, it will not form spread and margin at IM% would be levied on both 200 buy and 100 sell position.

The same rule applies even at order level. If you place buy order for 100 in Future - ACC- 27 Feb 2002 and sell order for 100 in Future - ACC- 26 Mar 2002, order having larger value would be margined. If you place buy order for 100 in Future - ACC- 26 Mar 2002 and sell order for 100 in Future - ACC- 29 Apr 2002, both buy order and sell order would be margined at IM%.

ICICIdirect allows the spread position between near month and middle month contract only.

1 working day prior to the expiry of the contract, ICICIdirect will remove the expiring contract from the spread benefit.
At this stage the client will have to provide complete margin required on the positions taken in the near month contract (expiring one). If limit is found insufficient then the position may come into the intra day MTM loop.

. 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), the margin blocked gets appropriately adjusted for the difference, if any, in the order price at which the margin was blocked and the execution price. Accordingly the limits are adjusted for differential margin.

If it is an execution of a cover order (order which would result into square off of an existing open position), the following impact would be factored into the limits:

a) Release of margin blocked on the open position so squared up.

b) Effect of profit & loss on the square off of such a transaction.

If an execution of an order resulting into building up spread position, impact on limits would be in terms of release of differential margin.

For example, you are taking an open buy position for 100 shares in Future - ACC- 27 Feb 2002 @ 150 and IM is 20%. Rs 3000/- would be blocked as an initial margin. Thereafter you take a sell position for 100 shares in Future - ACC- 26 Mar 2002 @ 160 and spread margin is 10%. Hence the execution of Future - ACC- 26 Mar 2002 order is resulting into spread position. As explained above, margin required would be 100*160*10% = 1600/- now. Hence the excess margin of Rs 1400/- (3000-1600) would be released and added into your trading limits.

Continuing the above example, if you place an sell order for 100 shares in Future - ACC- 27 Feb 2002 @ 170, margin of Rs. 3400/- would be required to place this order. This margin would be required despite being a cover order to square off the open position in the same contract. Reason for the same is that the order now being placed by you would result into the increased risk exposure since the buy position of 100 shares in Futures - ACC - 27 Feb 2002 has already been considered as position building up spread position. If buy position of 100 shares in Futures - ACC - 27 Feb 2002 is squared off, sell position of 100 shares in Future - ACC- 26 Mar 2002 @ 160 would become non-spread position and subjected to margin at 20 % IM.

. How to square off open position which is part of spread position and there is not enough trading limits to place a cover order?

In such a scenario, you will have to square off both buy as well sell position forming spread position. Facility to place such an orders is available in open futures Position page against the respective net position at underlying - group level in the form of a link called "Joint square off". This joint square off link is different than square off link available against each contract position. On clicking the same, position in all contracts within spread definition would be displayed. You can then specify the quantity for any two positions. One has to be buy and other should be sell. Your orders will go at market rate.

. How What is meant by 2L and L order placement?

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

Orders can be placed in the same underlying contract or different underlying contracts as well. Orders in the same underlying contract can be placed using the 'Place 2L & 3L orders' link. Whereas orders in different underlying contract can be placed through 'My Favorites'. The execution of orders takes place in the same ratio in which the order was placed. It can be understood by the following example.

Contract

Minimum Lot

Order Flow

Order Qty

Available Qty

Fut-ACC-28 Feb 2002

1500

Buy

3000

3000

Fut-Nifty-28 Feb 2002

200

Buy

400

200

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

If order qty for Fut-ACC-28 Feb 2002 is 1500 instead of 3000, execution will take place for 1500 Fut-ACC-28 Feb 2002 and 200 Fut-Nifty-28 Feb 2002. Remaining 1500 Fut-ACC-28 Feb 2002 and 200 Fut-Nifty-28 Feb 2002 unexecuted orders will be cancelled by the exchange.

. How do I see my open positions in Futures?

You can view all open futures positions by clicking on "Open Positions" and thereafter selecting "Futures" as product. The futures positions table gives details such as underlying, contract details, buy/sell position, open qty, cover order qty, base price, current market price, total margin blocked on the open position and order level margin at underlying-group level. Positions in contracts forming spread and non-spread are shown in separate groups. Contracts forming part of the same group will form spread against each other.


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

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


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

Execution price of cover order is compared against the weighted average price at which the position was built up / previous trading day EOD MTM price (as shown in the "Open Positions - Futures" table) and profit/loss is calculated therefrom.

For example, say you have a futures position - 'Buy 200 Reliance Shares' in contract Futures - ACC- 27 Feb 2002 at an average price of Rs. 300 per share created through the execution of two orders - 'Buy 100 @ Rs. 310 per share' and 'Buy 100 @ Rs. 290 per share'. If you square off a part of the position by selling 50 Reliance Shares @ Rs. 305 per share, the profit on such square off would be calculated as:

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

50 * (305 - 300) = 250

Profit or Loss for all your trading transactions can be checked from the "Portfolio Details" link on the FNO trading page/


Mark To Market (MTM). 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 deducting MTM loss from margin blocked at position level.

. Where can I see my Available Margin on site?

Your Available Margin will be displayed on your Open Positions Page under 'Futures' product type in the F&O section.


. How do you calculate Minimum Margin?

Minimum Margin is calculated by taking MM % instead of IM%. For spread position, Spread minimum margin % would be applied.


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

In that case, margin required on executed position is re-calculated by taking CMP of respective position and IM % and spread margin % as the case may be. Available margin as calculated above should now be compared with the required margin and amount for additional margin call is arrived at.

For example say you have bought 100 shares of Futures - ACC - 27 Feb 2002 at Rs.150 and IM is 20% and minimum margin is 10%. You would be having a margin of Rs.3000 blocked on this position. The current market price is now say Rs.130. This means the effective available margin Rs. 1000/- which is less than the minimum margin of Rs 1500/- and hence additional margin to be called in for. Additional margin to be calculated as follows:

(a) Margin available

Rs.3000

(b) Less : MTM Loss

(150-130)*100

Rs.2000

(c) Effective available margin

(a-b)

Rs.1000

(d) Minimum Margin

100*150*10%

Rs.1500

(e) Re-calculated margin

100*130*20%

Rs. 2600

  1. Additional margin Call

(e-c)

Rs. 1600



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

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

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

For SPAN customers, 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.


. 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 spread recognition) 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-group and see if limits are now sufficient to provide for additional required margin. If yes, block the additional margin, else go to step (2).

2. Square off in Lot size of the near month contract in that underlying and group and see if limits are now sufficient to provide for additional required margin. If yes, block the additional margin, else go to step (3).

3. Square off in Lot size of the next month contract in that underlying and group and see if limits are now sufficient to provide for additional required margin. If yes, block the additional margin, else carry on the process in the same way till all the positions in that underlying and group is totally squared off.

However, it is clarified that if, for any reason, the risk monitoring system/team does not square off the open position even in a situation where the limits are not sufficient to meet additional margin requirements, it is ultimately the customer's responsibility to square off the open position on his own to limit his losses.

Once a position has been created by the customer, he is solely responsible for the profits or losses emanating from such position. ICICI Securities Ltd is under no obligation to compulsorily square off any open position and in no circumstances, can be held responsible for not squaring off open positions or for resulting losses therefrom.

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

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

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


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

Yes, you can always allocate additional margin, suo moto, on any open margin 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 unfavorably volatile with respect to your position. You can add margin to your position by clicking on "Add Margin" on the "Open Position - Futures" page by specifying the margin amount to be allocated further. However, you should keep in mind that whatever margin you add during the day will remain there only till the end of day mark to Market (EOD MTM) is run or upto the time you square off your position in that underlying and group completely. Next day if you want some more margin to be added towards the same open position, you will have to do 'Add Margin' again.


. 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) is possible 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 case of futures. Every day the settlement of open futures position will take place at the closing price of the day. The base price as shown in the Open Position - Futures page is compared with the closing price and difference is cash settled. In case of profit in EOD MTM, limits are increased by the profit amount and in case of loss, limits are reduced to that extent. Next day the position would be carried forward at the previous trading day closing price at which last EOD MTM was run. Closing price for all the contracts are provided by exchange after making necessary adjustment for abnormal price fluctuations. It is different than LTP.

. What would be the effect of EOD MTM on margin blocked at position level?

Yes, EOD MTM does have its impact on margin at position level. Margin is re-calculated at the closing price at which EOD MTM was run and differential margin is blocked or released as the case may be. For margin calculation, the presentsame IM% and spread margin % is taken. To provide sufficient margin on open position after EOD MTM, ensure that suffecient allocation is available under F&O segment. You must visit the allocation amount for F&O on daily basis and allocate further if present allocation is found insufficient.

Due to daily MTM and payin/payout, allocation amount for F&O may come down over a period of time and because of the same, open position may fall in MTM loop and may get squared off unless you allocate fresh amount for F&O. Payin amount is debited from allocation you make for F&O but payout credit is always given in your clear balance. . What is meant by "Split of Contract"?

Seven calender days prior to the expiry of contract, open position of that contract would be taken out of spread definition and subjected to normal IM margin %. Position in such separated contracts would be shown separately. Limits would be reduced appropriately to ensure the IM% on near month contract. If limits are falling short to provide the same, the margin available in a group from which the near month contract was moved will also be utilised to make good the short fall. After moving the near month contract from the existing group to separate group, margin for the existing group will be re-calculated and limits would be reduced appropriately.

For example, you take buy position for 100 shares in Future - ACC- 27 Feb 2002 @ 150 and sell position for 100 shares in Future - ACC- 26 Mar 2002 @ 160. 100 buy position and 100 sell position would form spread. At 10% spread margin, margin blocked is Rs 1600/-. IM is 20%. Now position in Future - ACC- 27 Feb 2002 is taken out of spread. Following would be the margin requirement.

  1. Limits

    Rs 20000

  2. Margin on Future - ACC- 27 Feb 2002 - Group A

    100*150*20%

    Rs3000.00

  3. Remaining limits

    (a-b)

    Rs. 17000

  4. Margin on Future - ACC- 26 Mar 2002 - Group B

    100*160*20%

    Rs 3200

  5. Remaining limits

(c)-(d - 1600)

Rs 15400

. Can a non- spread contract be moved to spread group?

Yes,on the expiry of near month contract, far month contract would be moved to spread group. New contract now introduced will now be non-spread contract. . Is it compulsory to square off the position within the life of contract?

No. You may not square off the position till the contract expires. In that case, ICICIDirect as well as Exchange would expire your position on the last day on contract after running EOD MTM and your position would be closed at the closing price of the spot (equity) market as per the current regulations. Margin blocked on such expired position will also be released and added into you trading limits after adjusting profit/loss on close out.


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

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


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

Good Till Day (day order) orders are orders remains valid only for one trading session. Any unexecuted order pending at the end of the trading session is expired.

Good Till Date (GTD) order allows the user to specify the date till which the order should stay in the system if not executed. The maximum number of days for which the GTD order can remain in the system is notified by the Exchange from time to time after which the order is automatically cancelled by the Exchange system. The days counted are inclusive of the day/date on which the order is placed and are inclusive of holidays.

The order expiry on the last valid date of the order 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) order allows the user to buy or sell a security as soon as the order is released into the system, failing which the order is cancelled from the system. Partial match is possible for the order and the unmatched portion of the order is cancelled immediately.


GTD orders can be placed for earlier of the following two dates.

  1. A maximum number of days as notified by the exchange i.e. 7 days
  2. Contract expiry date

For example, exchange allows GTD orders for 7 days. There are following three contracts available for trading in futures market.

  1. Fut - ACC - 27 Feb 2002
  2. Fut - ACC - 26 Mar 2002
  3. Fut - ACC - 29 Apr 2002

In this example, on 17th February 2002, you can place a GTD order for earlier of the following two dates.

  1. 7 days from the placement date i.e. 23rd Feb 2002.
  2. Respective expiry dates.

Hence on 17th Feb, GTD order in any of the three contracts can be placed maximum for 23th Feb 2002.

Currently GTD orders are disabled by the exchange.

Settlement Obligation

. What kind of settlement obligation will I have in 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?

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

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 recoved or paid. In cash projection, distinct particulars would be given for payin/payout internally settled and settled by way of debit/credit in bank. Setting Trading Limits

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

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

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

 Yes, In case the market wide open position for an underlying reaches a particular percentage specified by exchanges (NSE or BSE), the trading in that particular underlying is disabled by the exchanges. Accordingly ISEC would also disable the trading in that particular underlying during market hours.

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

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

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

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

.Is there any hedging benefit between Futures and Options?

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

. When do orders in Futures get freezed?

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

  1. Price Freeze - In case of Stock Futures orders are freezed by exchange, if the price range specified is beyond ± 20% of base price i.e. previous days closing price. In case of Index Futures or Basket Futures orders are freezed by exchange, if the price range specified is beyond ± 10% of base price i.e. previous days closing price. However, the above price ranges may be changed depending upon the market volatility.
  2. Quantity Freeze - In case of Stock Futures the quantity for each stock is specified by exchange from time to time and single order value should not normally be beyond Rs. 4 Crores. In case of Index Futures the quantity should not be beyond 15000. For further details on the respective quantities for each stock please refer NSE site http://nseindia.com/content/fo/qtyfreeze.xls

. Where can I see that my order is freezed?

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

. 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.


Convert to FuturePLUS


. What is meant by 'Convert to FuturePLUS'?

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

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

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

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

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

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

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

. How does 'Conversion to FuturePLUS' impact limits?

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

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

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

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

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

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

For Example, consider the following scenario for Future Buy case,
Particulars Contract Qty Base Price IM% MM%
FuturePLUS FUT-RELIND-26-April-2012 250 1000 6.00% 4.00%
Future FUT-RELIND-26-April-2012 250 1000 11.00% 8.00%

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

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

The two scenarios that arise are:

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

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

Loss = (1000-980) *250 = Rs. 5000.

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

Thereby, after taking the FuturePLUS position,

Blocked Margin = Rs. 20000

Minimum Margin = Rs.10000

Available Margin = Rs.15000 i.e. (20000-5000)

Additional releasable Margin added to limits = Rs. 7500

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

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

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

Loss = (1000-945) *250 = Rs. 13750.

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

Thereby, on conversion to FuturePLUS position,

Blocked Margin = Rs. 27500

Minimum Margin = Rs.10000

Available Margin = Rs.27500-13750=13750

Additional releasable Margin added to limits = Rs.0

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

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

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




Research And Other Trading Tools


. What other resources will the site offer me to help in taking smarter decisions for online futures trading?

 Our site offers you a comprehensive set of resources like Derivatives School, My Index and Futures Pricing calculator to help you in making better decisions.

In "Derivatives School" you can get whole lot of information like introduction to futures and options, its application, pricing, various trading strategies etc.

"My Index" allow you to change the price of selected stocks and see its impact on index.

"Futures Pricing" facilitate you in finding the arbitrage opportunities. If futures price moves away from the fair price valuation, arbitrage opportunities will exist.

"I CLICK-2-GAIN" provides you tips for taking informed trading decisions



FAQ (FUTURES ROLLOVER)      FAQ (FUTURES)      FAQ (FuturePLUS Normal Margin)     FAQ (FuturePLUS Stop Loss Limit Margin)      FAQ (OPTIONS)      FAQ (OptionsPLUS)      FAQ (SHARES AS MARGIN)     FAQ (FNO MARGIN DEBIT /CREDIT PROCESS)
    FAQ(Global Indices)    Specific FAQs on BSE

. What is Rollover?

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

. Can I place rollover for both Future and Options product?

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

. Can Rollover order be placed for positions in all expiring contracts?

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

. On which exchanges will I be able to use the Rollover facility ?

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

. From where can I place Rollover orders?

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

. How will the Rollover facility work?

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

. Can I place Market and Limit orders under the Rollover facility ?

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

. Can I place Rollover order for more than open position Quantity?

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

. Can I place part Rollover order against the open position quantity ?

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

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

. If I have placed cover order then will I be able to place rollover order?

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

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

. Is Rollover facility available for both buy as well as sell position?

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

. How can I distinguish between Rollover orders from other orders?

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

. Will my Rollover orders always get executed?

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

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

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

. Can I Place Rollover orders after market hours?

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

. Will I be able to do rollover in any contract?

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

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

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

. If I am a Non-SPAN customer then how will margining be done for Rollover?

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

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

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

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

Then in the above example;

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

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

. Can I place rollover order for my spread position?

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

. Are there any additional charges for Rollover?

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



FAQ (FuturePLUS Normal Margin)      FAQ (FuturePLUS Stop Loss Limit Margin)      FAQ (FUTURES)      FAQ (FUTURES ROLLOVER)      FAQ (OPTIONS)      FAQ (OptionsPLUS)      FAQ (SHARES AS MARGIN)     FAQ (FNO MARGIN DEBIT /CREDIT PROCESS)
    FAQ(Global Indices)    Specific FAQs on BSE

1.Why Future Plus

. What is FuturePLUS product on ICICI direct?

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

. How is FuturePLUS different from trading in Futures?

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

. Why should I trade in FuturePLUS?

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

2.Get started with FuturePLUS

. How can I get started in FuturePLUS?

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

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

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

. When can I start trading in FuturePLUS?

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

3.Trading in FuturePLUS

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

ICICIdirect offers you execution capability on the National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange (BSE). Please refer the last section on Specific FAQs with regards to BSE to know the main differences with regards to F&O trading on BSE.

. Can I place transaction in FuturePLUS through Call Centre?

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

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

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

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

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

. Can an enabled contract be disabled later ?

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

. 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 Banned underlyings?

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

. Where can I view FuturePLUS contracts?

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

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

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

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

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

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

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

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

There are different order books for Future and FuturePLUS orders respectively. The difference in these order books is the appearance of background colour in FuturePLUS order.

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

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

. Is the margin % uniform for all stocks?

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

. Can margin be changed during the life of contract?

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

. Is margin blocked on all FuturePLUS orders?

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

For example, you have placed the following buy and sell orders:

Contract Details

Buy Orders

Sell Orders

 

Qty

Rate

Order Value

Qty

Rate

Order Value

Fut - ACC- 26 Jun 2008

188

760

142880

     

Group Total(Highest order value to be margined)

188

 

142880

 

 

 

Fut - ACC- 31 Jul 2008

188 755 141940

188

763

143444

Group Total(Highest order value to be margined)

 

 

 

188

 

143444

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

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

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

Contract Details

Buy Orders

Sell Orders

 

Qty

Rate

Order Value

Qty

Rate

Order Value

Fut - ACC- 31 Jul 2008

188

755

141940

376 763 286888

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

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

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

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

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

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

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

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

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

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

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

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

If it is an execution of a fresh order (i.e. an order which would result into building up an open position), the margin blocked gets appropriately adjusted for the difference, if any, in the order price at which the margin was blocked and the execution price. Accordingly the limits are adjusted for differential margin. If it is an execution of a cover order (order which would result into square off of an existing open position), the following impact would be factored into the limits:


a) Release of margin blocked on the open position so squared up.
b) Effect of profit & loss on the square off of such a transaction.

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

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

. How do I see my open positions in FuturePLUS?

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

. What is meant by 'Convert to Future?

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

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

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

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

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

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

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

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

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

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

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

. How does 'Conversion to Future' impact limits?

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

1. If AM>=MM,of proposed Future position then additional margin required will be,

Initial Margin % required for Future position on Base price i.e.weighted average price of existing FuturePLUS position - Blocked Margin for existing FuturePLUS position.

2. If AM<MM, of proposed Future position then additional margin required will be,

Initial Margin required for future position on Base price i.e.weighted average price of existing FuturePLUS position - Available Margin for existing FuturePLUS position.

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

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

For, example, consider the following scenario,
  
Particulars Contract Trade Flow Qty Base Price IM%
FuturePLUS FUT-RELIND-26-April-2012 Buy 250 1000 6.00%

Current limit available = Rs.50000/-

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

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

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

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

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

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

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

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

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

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

FuturePLUS Available Margin = 15000-12500 = 2500.

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

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

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

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

. What is meant by Minimum Margin?

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

. How do you calculate Minimum Margin for FuturePLUS?

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

. How do you calculate available margin?

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

.How do you calculate additional margin required for FuturePLUS positions when the available margin is below the minimum margin required?

In that case, margin required on executed position is re-calculated by taking CMP of respective FuturePLUS position(s) and the FuturePLUS IM % . Available margin as calculated above should now be compared with the required margin and amount for additional margin call is arrived at.
For example say you have bought 100 shares of Futures- ACC-26-Jun-2008 at Rs.150 and FuturePLUS IM is 20% and minimum margin is 10%. You would be having a margin of Rs.3000 blocked on this position. The current market price is now say Rs.130. This means the effective available margin Rs. 1000/- which is less than the minimum margin of Rs 1500/- and hence additional margin to be called in for. Additional margin to be calculated as follows:
(a) Margin available
Rs.3000
(b) Less : MTM Loss
(150-130)*100
Rs.2000
(c) Effective available margin
(a-b)
Rs.1000
(d) Minimum Margin
100*150*10%
Rs.1500
(e) Re-calculated margin
100*130*20%
Rs. 2600
a. Additional margin Call
(e-c)
Rs. 1600


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

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

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


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

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

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

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

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

Yes, you can always allocate additional margin, on any open position. Since the Intraday MTM process is triggered when minimum margin required is more than available margin, having adequate margins can avoid calls for any additional margin in case the market turns unfavorably volatile with respect to your position. You can add margin to your position by clicking on "Add Margin" on the "Open Position - FuturesPLUS" page by specifying the margin amount to be allocated further. time you square off your position in that underlying.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

. Can the FuturePLUS product be disabled?

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

. Is there any hedging benefit between Futures and Options?

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

. Can I do Shares as Margin for FuturePLUS?

Yes. Shares as Margin facility is available for FuturePLUS. For more details you can refer FAQs on Shares as Margin.

. When do orders in Futures Plus get freezed?

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

  1. Price Freeze - In case of Stock Futures orders are freezed by exchange, if the price range specified is beyond ± 20% of base price i.e. previous days closing price. In case of Index Futures or Basket Futures orders are freezed by exchange, if the price range specified is beyond ± 10% of base price i.e. previous days closing price. However, the above price ranges may be changed depending upon the market volatility.

  2. Quantity Freeze - In case of Stock Futures the quantity for each stock is specified by exchange from time to time and single order value should not normally be beyond Rs. 4 Crores. In case of Index Futures the quantity should not be beyond 15000. For further details on the respective quantities for each stock please refer NSE site. http://nseindia.com/content/fo/qtyfreeze.xls

. Where can I see that my order is freezed?

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

. 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.

4. Brokerage Charges

. What are brokerage charges for FuturePLUS?

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

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

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


FAQ (OPTIONS)      FAQ (FUTURES)      FAQ (FUTURES ROLLOVER)      FAQ (FuturePLUS Normal Margin)     FAQ (FuturePLUS Stop Loss Limit Margin)      FAQ (OptionsPLUS)     FAQ (SHARES AS MARGIN)     FAQ (FNO MARGIN DEBIT /CREDIT PROCESS)
    FAQ(Global Indices)    Specific FAQs on BSE

. What is Options Trading at ICICIDirect.com?

As a customer of ICICIdirect now, you can trade on index options on NSE or BSE and stock options on NSE. It comes with a comprehensive tracking cum risk management solution to give you enhanced leveraging on your trading limits.

In options trading, you take buy/sell positions in index or stock(s) contracts expiring in different months with various Strike Price. If, during the course of the contract life, the price moves in your favor, you make a profit. In case the price movement is adverse, you incur a loss. To take the buy/sell position on index/stock options, you have to place certain % of order value as margin. With 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 downpayment the Buyer of Call or Put is required to make for entering the options agreement.

. What is a European option?

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

. What is an American Option?

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

. On which exchanges will I be able to buy and sell in Options market?

ICICIDirect offers its customers execution capability on the National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange (BSE). Please refer the last section on Specific FAQs with regards to BSE to know the main differences with regards to F&O trading on BSE.

. 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.

. How is Options Contract Defined?

An European Put ACC Options expiring on 30 May 2002 with a strike price of 150 is described as OPT-ACC-30-May-2002-150-PE.

OPT denotes Option, ACC is the underlying, 30 may 2002 is the expiry date of the contract, 150 is the strike price and PE denotes it is an European Put option.

C would denote Call and E would denote European and CE would denote it is an European Call Option. Currently, in India index and stock options are European in nature.

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

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

. Can an enabled contract be disabled later ?

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

. 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 Banned underlyings?

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

. Where can I view Options contracts?

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

. Would Different Margin percentage be applicable to Different underlying Stocks?

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

Thus all ACC stock options would be marginable say at 30%, whereas all BHEL options would be marginable say at 25%.

Can margin be changed during the life of contract?

Yes, margin % can be changed during the life of the contract depending on the volatility in the market. It may so happen that you have taken your position and 25% margin is taken for the same. But later on due to the increased volatility in the prices, the margin % is increased to 30%. In that scenario, you will have to allocate additional funds to continue with open position.

. 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-ACC-30-May-2002-150-PE for 1500 quantity at a Limit price of 20 would attract margin of Quantity * Price at Rs 30,000/-.

. 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 calculation is slightly different as compared to Buy orders. ICICI direct would specify a Margin percentage as it feels is commensurate with the volatility and the current position of the Stock or the Index. This percentage would be applied to the Current Market Price (CMP) of the shares/Index in the Underlying Market.

. Would In-the-Money or Out-of-Money be considered for Margin calculation in case of Sell Orders?

Yes, In-the-Money or Out-of-Money would be considered while calculating the Margin on Sell orders. In case of In the Money, the seller of the option would be required to bring in additional amount equal to the difference between CMP and the Strike price in case of Call and difference between Strike price and the CMP in case of Put. In case of Out of money, the seller of the Option is given the benefit and would be required to bring in lesser amount equal to difference between Strike price and the CMP in case of Call and difference between CMP and the Strike price in case of Put.

The Margin so arrived is compared with a Minimum Margin (SOMC margin) i.e the Short option margin Percentage, the higher of the two percentages is taken into account.

. 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 withdrawn since the Premium is now a crystallized entry for which you would get the Payout on the Indicated payout date. Now the entire margin amount is blocked from the limits. The following Illustration shows how margin is calculated on sell orders (Applicable to both Call and Put orders)

You place a sell order in OPT-ACC-30-May-2002-150-CE, for 3000 quantity at a limit price of 20/-

Current Market price of ACC is 140.

Initial margin on ACC is 30%.

The Buyer Out of the Money in this case and the seller gets benefit of this.

(a) Margin

3000 * (140*30% - (150-140)) = Rs 96000

Margin on Order would be =Rs 96000

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

No, margin is blocked on the order, which attracts higher Margin out of the Buy or Sell order.

If you have placed both a buy and sell order in the same contract Margin blocked would be the maximum of the two orders.

Illustration

As in the above illustration the sell order attracts a margin of

(a) Rs 96000/-.

If you place a Buy order in the same Contract OPT-ACC-30-May-2002-150-CE 3000 at Rs 20/- it would attract margin of

(b) Rs 60,000/-.

Margin blocked would be the higher of the two margins (a) or (b) i.e. Rs 96,000/-.

. 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. If a Position of opposite nature is present then the Order is reduced by the opposite position, if the opposite position is greater than the order, then the order is not margined at all. For e.g.

a) if you have a Buy position of 4500 in OPT-STABAN-25-Jul-2002-210-CE, and you place a sell order of 3000 then the sell order becomes non-marginable.

b) If you have a sell position in OPT-NIFTY-27-May-2004-1700-CE, and the margin blocked is Rs.45,500.00 and a cover buy order is placed which requires total premium of Rs.65000.00, then extra margin to the extent of Rs. 14500.00 (65000-45500) is required.

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

In both cases buy and Sell, the Marginable Buy order or Marginable Sell order is arrived at the Contract level. Marginable Buy order is calculated by deducting Net Sell Position from the Total Buy orders

Marginable Sell order is calculated by Deducting Net Buy Position from the Total Sell orders

Margin is recovered only on the Marginable Buy/Sell order Quantity.

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

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

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

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

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

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

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

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

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

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

. What is the Effect of Exercise?

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

. How is Profit calculated on Exercise?

In case of Exercise the profit is calculated as the difference between the Exercise Settlement price of the Underlying shares in the cash market and the Strike price of the contract. This is then multiplied by the exercised quantity and reduced by the applicable brokerage charges, statutory levies and taxes.

. Is exercise quantity considered for Margin calculation?

Yes, the exercised quantity is reduced from the open positions in the Marginable sell order quantity calculation. Hence the sell order placement would be marginable if the quantity of sell order exceeds the difference between the executed Buy position and the exercise request quantity i.e. Sell order Qty is greater than (Buy Position Qty - Exercised Qty).

. Is part exercise possible by the exchange?

No, only full quantity will be exercised by exchange.

. What is assignment?

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

. How do I know I have been assigned?

The Assignment book will reflect the assigned quantity in the contract; the Limits page will also accordingly reflect the Payin dates on which the assignment obligation is payable.

. Do I have any control over Assignment?

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

The Assignment process is completely decided by the exchange.

. Is there a Daily EOD MTM just like Futures?

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

. Is MTM done in case of options?

Yes, but it is applicable only in case of Short Positions i.e. Sell Call and Sell Put.

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

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. Whenever the Underlying price of the shares goes above the Trigger price in case of Sell Call, the Contract would be in the MTM loop. First the Additional margin recalculated as per the new scenario due to price rise is blocked; if Additional margin is found to be insufficient then the orders in the same contract are cancelled. If both these measures fail, then the position is squared off by the ICICIdirect.com.

    (Strike Price + Margin Amount)
Trigger Price for Sell Call position = -------------------------------------
    (1 + Minimum Margin %)

For Example:

You have a sell position in OPT-ACC-30-May-2002-150-CE

Current Market price of ACC is 140.

Initial margin on ACC is 30%.

Initial Margin = (140*30% - (150-140)) = Rs 32

Minimum Margin on ACC is 10%.

Trigger Price for Sell Call Position = (150 + 32) / (1+ 10%) = 165.45

When the ACC price would rise above 165.45 the sell position in OPT-ACC-30-May-2002-150-CE would be in the MTM Loop.

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

As soon as you place a Sell Put 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. Whenever the Underlying price of the shares goes below the Trigger price in case of Sell Put, the Contract would be in the MTM loop. First the Additional margin recalculated as per the new scenario due to price fall is blocked; if Additional margin is found to be insufficient then the orders in the same contract are cancelled. If both these measures fail, then the position is squared off by the ICICIdirect.com.

    (Strike Price - Margin Amount)
Trigger Price for Sell Put position = -------------------------------------
    (1 - Minimum Margin %)

For Example:

You have a sell position in OPT-ACC-30-May-2002-150-PE

Current Market price of ACC is 160.

Initial margin on ACC is 30%.

Minimum Margin on ACC is 10%.

Initial Margin = (160*30% - (160-150)) = Rs 38

Minimum Margin on ACC is 10%.

Trigger Price for Sell Put Position = (150 - 38) / (1- 10%) = 124.44

When the ACC price would fall below 124.44 the sell position in OPT-ACC-30-May-2002-150-PE would be in the MTM Loop.

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

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

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

. If limits are found to be insufficient is the whole position sent for square off in both cases of sell call and sell put?

No, Square off is done in both cases in lot size of the contract. On acceptance of the square off placed, the new trigger price is calculated and whole process as explained above for sell call and sell put is repeated. This goes on till either sufficient margin is available or the complete position is squared off whichever is earlier.

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

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

. How is brokerage calculated in case of options?

Brokerage in options is calculated on per lot/contract basis. Please refer Fee schedule on Customer Service page for more details

Settlement Obligation

. 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. Profit on Exercise
  4. Loss on assignment

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

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

Condition

Obligation Settlement

Option Premium Receivable

T+1

Option Premium Payable

T

Exercise Profit in case of Stock / Index

T+1

Assignment Loss in case of Stock / Index

T

Brokerage

T

. 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.

. What is meant by 2L and 3L order placement?

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

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

Contract

Minimum Lot

Order Flow

Order Qty

Available Qty

OPT-ACC-30-May-2002-150-CE

1500

Buy

3000

3000

Fut-ACC-28 Feb 2002

200

Buy

400

200

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

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

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

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

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

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

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

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

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

Orders in Options may get freezed at the exchange end. There is only quantity freeze (no price freeze) in case of options. In case of Stock Options single order value should not be beyond Rs. 5 Crores and the quantity for each stock is specified by exchange from time to time. In case of Index Options the quantity should not be beyond 15000. For further details on the respective quantities for each stock please refer NSE site http://nseindia.com/content/fo/qtyfreeze.xls

. Where can I see that my order is freezed?

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

. 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 hedging benefit between options?

No. Currently ICICIdirect is not offering any hedging/spread benefit within Options. Thereby customers are advised to monitor all the options positions as independent positions and allocate margin for all individual open Option positions (if additional margin is required).

FAQ (OptionsPLUS)     FAQ ( FUTURES )     FAQ (FUTURES ROLLOVER)      FAQ (FuturePLUS Normal Margin)     FAQ (FuturePLUS Stop Loss Limit Margin)      FAQ (OPTIONS)    FAQ (SHARES AS MARGIN)    FAQ (FNO MARGIN DEBIT /CREDIT PROCESS)
    FAQ(Global Indices)    Specific FAQs on BSE

. What is OptionPLUS?

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

. What is fresh order?

The order which is placed for creating the position is called fresh order. The fresh order is always a Market order.

. Can I place a limit fresh order?

No, fresh order is always a market order and limit fresh order under this feature is not allowed.

. What is a cover order?

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

. Can I place a cover profit order?

No, currently this feature is not available in OptionPLUS product.

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

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

. In which Exchanges shall I be able to place orders in OptionPLUS?

Presently, OptionPLUS facility is available only in NSE.

. Can I place OptionPLUS orders in all underlyings?

Only select underlyings have been enabled for trading under the OptionsPLUS product which meet the internal criteria on liquidity and volumes.

. Can I place OptionPLUS orders in all contracts?

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

. From where do I place OptionPLUS orders?

You can place orders in OptionPLUS product by visiting the existing 'Place Order' link by choosing the product type as 'OptionPLUS' under the F&O trading section. Alternatively, you may also place orders in OptionPLUS by directly selecting 'OptionPLUS Order' under the F&O trading section. In case this selection is done then both Fresh and Cover SLTP orders can be placed simultaneously from a single order entry page.

. What is a Cover Stop Loss order?

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

Examples:

Cover Stop Loss Buy Order

'A' takes a short (sell) Option Call position in underlying NIFTY which is trading at a LTP of Rs 300/- with strike price of Rs 6000 in expectation that the price will fall. However, in the event the price rises above his sell price, 'A' would like to limit his losses. 'A' may place a limit buy order specifying a Stop loss trigger price of Rs.350/- and a limit price of Rs. 360/-. The stop loss trigger price (SLTP) has to be between the last traded price and the buy limit price. Once the market price of NIFTY call with strike price of Rs 6000 touches or crosses the SLTP i.e. Rs. 350/-, the order gets converted to a limit buy order at Rs. 360/-.

Cover Stop Loss Sell Order

'A' takes a long (buy) Option Put position in underlying NIFTY which is trading at a LTP of Rs. 20/- with strike price of Rs 6000 in expectation that the contract price will rise. However, in the event the price falls, 'A' would like to limit his losses. 'A' may place a limit sell order specifying a Stop loss trigger price of Rs. 15/- and a limit price of Rs. 10/-. 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. 15/-, the order gets converted into a limit sell order at Rs. 10/-.

Important note:

Please note that in a buy order, the SLTP should be a price lower than the buy price i.e less than the last traded price. A SLTP cannot be placed for a price that has already been surpassed by the market when the SLTP is being placed. Similarly, in case of a stop loss sell order the SLTP should be greater than the sell price of fresh order i.e. higher than the last traded price.

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

Following details should be provided to place a fresh order;

  • Exchange
  • Stock Code
  • Contract Details
  • Option Type
  • Action (Buy/Sell)
  • Quantity
  • Order Type - Market

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

Yes, it is mandatory that both the fresh and cover orders under OptionPLUS product be placed together.

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

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

. What are the details for a cover SLTP order?

The details for a cover SLTP order are as follows:

  1. Exchange
  2. Contract Details
  3. Action (Buy/Sell)
  4. Quantity
  5. Order Type - Limit
  6. Stop Loss Trigger Price
  7. Limit Price

The first 5 values would be automatically picked up from the Fresh order details. The Stop Loss Trigger Price value is required to be entered by you which would be the trigger price and the order gets activated once the market price of the relevant security reaches or crosses this threshold price. The value for limit price would automatically appear in the Limit Price field based on the margin requirement for the stock between the Limit Price compared to the Stop Loss Trigger Price (SLTP). Please visit the Stock list page of OptionPLUS product to see details on the margin requirement for your respective transaction.

. Can I cancel the cover SLTP order?

No, cover SLTP order cannot be cancelled.

. Can I modify the cover SLTP order?

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

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

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

The maximum quantity that can be submitted for fresh orders is the total of best 5 Bid/Offer quantities that is available in the best bids and offers. If the quantity that you input is greater than the quantity available in the best 5 bids and offers then the order will not go through.

Assuming that you want to place a buy order for 5000 quantity @ 100, and the first 5 offer quantity available for the buy order are as under:

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


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

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

For fresh orders the price would be calculated based on the weighted average price of the best 5 bids and offers available for calculating the margin requirement. If the following offers are available in the best 5 bids and offers and the client places a Buy order for quantity of 600.

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


Calculation of Buy price

Qty Price Value
150 11 1,650
150 11.5 1,725
300 12 3,600
600 - 6,975


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

. What is the margin that is charged on the fresh order?

Margin in case of fresh order is charged to the extent of maximum possible loss that you may incur plus an additional margin calculated at the OptionPLUS margin % specified, if any, for the underlying in the stock list page. It is calculated as {(Weighted average price of fresh order - limit price of cover SLTP order) * Quantity of shares} + {(Weighted average price of fresh order * quantity of shares) * OptionPLUS margin %, if any, for the stock} Margin is blocked as per the above formula on order placement and adjusted further based on the actual execution price.

Assume you take a buy position for the fresh order of 1000 quantity at current market price of 100/-. Simultaneously you also place the Sell (cover SLTP order) of 1000 quantity as Limit price 90/- and SLTP 95/-. The OptionPLUS margin % for the scrip is either 0 or 10%.

In this case margin amount would be blocked as (Weighted average price of fresh order * quantity of shares)* OptionPLUS margin% +( weighted average price of fresh order - limit price of cover SLTP order)* quantity of shares

In case the OptionPLUS margin % is 0%
(100*1000)*0%) +(100-90)*1000) = 10,000/-

In case the OptionPLUS margin % is 10%
(100*1000)*10%) +(100-90)*1000) = 20,000/-

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

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

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

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

In the above example where OptionPLUS margin % is 10%, if you modify the SLTP to 98/- and limit price to 92/-.
The amount to be blocked would be recalculated as: (100*1000)*10%) + (100-92)*1000) = 18000/-
The excess amount of 2000/- would be released and added in your limit.

In the above example where OptionPLUS margin % is 10%, if you modify the limit price of your cover SLTP order to 88/- difference amount would be recalculated as (100*1000)*10%) +(100-88)*1000 = 22000/-

Additional amount of 2000/- would be blocked. If limits are insufficient then you will be unable to modify the order.

. What is SLTP - Limit price difference % on stock list page?

SLTP - Limit price difference % is the difference percentage defined between the SLTP and Limit price of your cover order. For example: SLTP - Limit price difference % is defined as 10% and you want to place call long (buy) order for 100 quantity in NIFTY underlying at Rs. 1200/- with strike price of Rs 6000/-. You specify the sell order (Cover SLTP order) for 100 quantity at SLTP of 1150/-. Since this is a sell cover SLTP order the limit price would be lower than the SLTP. Limit price of Rs 1035/- = (1150-(1150*10%)) will automatically appear in the Limit Price field.

. Is the 'Minimum SLTP - Limit price difference %' different for different underlying?

Yes, I-Sec may define different Minimum SLTP - Limit price difference % for different underlying depending upon the volatility and market conditions of the stock.

. Is the 'Minimum SLTP - Limit price difference %' different for contracts in the same underlying?

I-Sec may define 'Minimum SLTP - Limit price difference %' for different SLTP range at underlying level depending upon the volatility and market conditions of the stock. However, it is possible to have different 'Minimum SLTP - Limit price difference %' for different ranges of SLTP for same contracts even within the same underlying. This would mean that different orders placed even within the same contract but with different SLTP may have different 'Minimum SLTP - Limit price difference' applied depending on the price range in which the Client specified SLTP falls.

Assume you want to take Put long (buy) position for 1000 quantity in NIFTY underlying at Rs. 100/- with strike price of Rs 6000/-. Simultaneously you also want to place the Sell (cover SLTP order) of 1000 quantity with SLTP ranges for NIFTY underlying defined as follows. The OptionPLUS margin % for the scrip is 0%. Suppose following is the Minimum SLTP- Limit Price difference specified by I-Sec:

SLTP Range (in Rs.) Minimum SLTP - Limit Price difference %
0 upto 2 NA
2 upto 10 100%
10 upto 40 70%
40 upto 80 40%
80 upto 120 20%
120 upto 200 10%
SLTP > 200 5%


In the above example if you place cover Sell order with SLTP as Rs. 95/-, it will fall in SLTP range of Rs. 80-120 and 20% as SLTP - Limit price difference % will be considered for calculating limit price as shown below

Limit Price = (95-( 95)*20 %) = 76/-.

Further if you wish to place cover order with different SLTP price as per below table then different Minimum SLTP - Limit Price difference % will be considered as defined for that range under a particular underlying.

.Will order be allowed to be placed in all SLTP ranges defined for an underlying? What is the maximum percentage that can be defined for SLTP range?

If for a particular SLTP range the Minimum SLTP - Limit Price difference % defined is:

  1. NA (Not Allowed): Orders will not be allowed with SLTP prices falling under such range defined as NA. Example: In the above table if any order is placed in this underlying contract with SLTP falling in the range Rs. 0 upto 2 then such orders will be rejected.
  2. Maximum 100% : If for a particular SLTP range the Minimum SLTP - Limit price difference percentage is defined as 100% then;
    1. In case of Fresh Buy, limit price of your cover SLTP order will always be default auto populated as Re. 0.05 and full premium will be blocked as margin for such cases.
    2. ii. However in case of Fresh sell, limit price of your cover SLTP order will be auto populated considering '100% SLTP - Limit price difference %' or 'Minimum SLTP - Limit Price value' (only in case of Fresh Sell), whichever is higher. Complete margin will be blocked as explained in below FAQs.

. How is limit price of cover order for a Fresh Buy order/position calculated and populated considering the Minimum SLTP-Limit price difference?

You may refer the below table for better clarity on the Limit Price calculation in the last column based on the SLTP range and the Minimum SLTP - Limit Price difference for Fresh Buy orders.

SLTP SLTP Range Minimum SLTP - Limit Price difference % Limit Price (Auto calculated & populated)
85 80 upto 120 20% (85 - 85*(20%)) = 68
65 40 upto 80 40% (65 - 65*(40%)) = 39
40 40 upto 80 40% (40 - 40*(40%)) = 26
39 10 upto 40 70% (39 - 39*(70%)) = 11.7
5 2 upto10 100% 0.05
1 0 upto2 NA -

. Is it possible to have different SLTP range and 'SLTP - Limit price difference %' of Cover SLTP order for different option types (Call and Put) in the same underlying?

No, For both option types (Call and Put) same SLTP range and 'SLTP - Limit price difference %' of Cover SLTP order will be applicable as defined for that underlying SLTP ranges on the stock list page.

. Is it possible to have different SLTP range and 'SLTP - Limit price difference %' of Cover SLTP order for Buy and Sell in the same underlying. How is the limit price of cover order for a Fresh Sell order/position calculated and populated?

Yes. I-Sec at its discretion may define different SLTP range and different 'Minimum SLTP - Limit price - difference %' for Buy and Sell at underlying level depending upon the volatility and market conditions of the stock. In case of Sell, apart from 'SLTP - Limit price difference percentage' there will be a Minimum SLTP - Limit price Value in absolute Rupees terms defined against each range and the same can be seen by visiting the Stock list page under the F&O trading section by selecting the product as OptionPLUS. This value will be compared with SLTP - Limit price difference percentage and higher of the two will be considered for limit Price computation of the cover SLTP order while order placement.

Underlying: NIFTY
Cut Off Premium Price: 2.00
FRESH BUY FRESH SELL
SLTP Range SLTP - Limit
price difference %
SLTP Range Minimum SLTP - Limit
price difference %
Minimum SLTP - Limit
price difference Value (Rs)
0 upto 5 NA 0 upto 3 100% 1.00
5 upto 20 100% 3 upto 20 90% 5.00
20 upto 50 50% 20 upto 50 50% 8.00
50 upto 90 20% 50 upto 120 20% 15.00


In the above example, if you want to enter SLTP as Rs. 60/- for Buy cover SLTP order against your NIFTY fresh Sell order/position. Then SLTP - Limit price difference percentage as per the range table is 20% which is Rs.12/-. However Minimum SLTP - Limit price difference value of Rs.15/- is higher than value obtained from SLTP -; Limit price difference %. Hence limit price will be calculated using minimum difference as Rs.15/- and not considering Rs.12/-. This means that always higher of the two differences based on % or absolute value would be considered for calculating the Limit Price value and margin thereon.

. What is premium cut off price on stock list page?

Premium cut off price is the LTP below or equal to which orders will not be allowed. Example: If the premium Cut off price for NIFTY underlying is set at Rs 3/-, then contracts with LTP greater than Rs 3 will be allowed whereas contracts with LTP lower than or equal to Rs 3/- will not be allowed. Following table can be referred as an example :

UnderLying Product Symbol Expiry Date Strike Price LTP Option Type Order Allowed/Disallowed
NIFTY OPTIDX 26-Dec-2013 6700 15 Call Allowed
NIFTY OPTIDX 26-Dec-2013 6800 7 Call Allowed
NIFTY OPTIDX 26-Dec-2013 6900 4 Call Allowed
NIFTY OPTIDX 26-Dec-2013 7000 3 Call Disallowed
NIFTY OPTIDX 26-Dec-2013 7100 2 Call Disallowed

. Is premium cut off price applicable for both Fresh Buy and Sell orders?

No. Premium cut off price is applicable only in case of Fresh Sell order. However, as mentioned above, Fresh Buy orders will not be allowed with SLTP prices falling under range defined as NA.

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

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

The Limit Price would automatically appear in the Limit Price field based on the SLTP - Limit price difference % or minimum absolute value difference between the Limit Price compared to the Stop Loss Trigger Price (SLTP), once the SLTP is entered by the Client.

Example: A 10% difference for a particular range of SLTP has to be maintained between the limit price and SLTP for cover SLTP order for NIFTY.

You want to take a put long (buy) fresh position for 100 quantity in NIFTY underlying at Rs. 20/- with strike price of Rs 6000/-. You specify the sell order (Cover SLTP order) for 100 quantity at SLTP of 15/-. Since this is a sell cover SLTP order the limit price would be lower than the SLTP. Limit price of Rs 13.5/- = (15-(15*10%)) will automatically appear in the Limit Price field.

. How can I modify Limit Price of the cover order?

As mentioned above, Limit Price would automatically appear in the Limit Price field based on the difference prescribed by I-Sec and SLTP set by you at the time of order placement. After order placement, you can modify the Limit Price of unexecuted cover order by visiting the Order Book page by clicking on Modify link against your cover SLTP order.

. Where can I see the Minimum SLTP - Limit price difference % or absolute value for a particular underlying?

You can view the Minimum SLTP - Limit price difference % or the absolute value between SLTP and Limit price of your cover order for various underlying by visiting OptionPLUS product in the Stock List link under the F&O trading section of www.icicidirect.com

. How does the concept of OptionPLUS work?

Example
Assume you take a sell position for the fresh order of 1000 shares at current market price of 100/-. Simultaneously you also place the SLTP buy (cover order) of 1000 shares at SLTP 108/- and Limit price 112/-.

The above example can be analyzed as follows:

Apart from OptionPLUS margin % on the fresh order value (assuming to be zero), the maximum loss amount would be blocked on the fresh order and cover SLTP order as difference between weighted average price of Fresh order and limit price of cover SLTP order. (112-100)*1000= 12,000/-. The fresh order is a market order which will get executed at the market price available at that point of time. If the order gets executed as 101/-, revised amount of 1000/- would be released. The cover order would remain in the ordered status.

Current market price rises - Position is making a loss: Once the current market price starts rising and reaches 108/-, the cover SLTP order would be triggered to a limit order with price 112/-. The cover SLTP order would get executed at the best prices available up to the limit price of 112/-.

Current market price falls - Position is making a profit: Once the current market starts falling and reaches 85/- you can choose to modify the buy cover SLTP order to a market order to immediately book profits at market price.

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

Yes, you would be able to place Cover SLTP Order from the Open Positions screen where a link named 'Place Cover Order' will appear if the same is rejected by Exchange. The Client agrees that ICICI Securities would not be liable for losses, if any, incurred on such position if Client does not re-enter a Cover Order. It shall be the responsibility of the client to monitor his/her positions and take adequate measures to safeguard himself against any such events.

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

In case of OptionPLUS product, all the positions created for the day are expected to be squared off by the customers before the market closes as this is an Intra day product. In case, if the positions still remains open at the end of day, I-Sec on best effort basis would first cancel all the pending cover orders and then initiate the Square off process at a pre determined timing at market price for all the open positions. Losses, if any, on such square off shall be payable by the client which shall be recovered from Client's linked bank/demat a/c.

If for any reason position still remains open after end of day then it will be treated as a regular open Options position by exchange and all obligations and margin as applicable to Options would apply to such open positions which shall be adjusted from your limits or debited from your linked bank a/c. If sufficient margin is not available with you towards such open positions, exchange would levy a short margin collection penalty which I-Sec shall recover from you.

. Will there be any Mark to Market process?

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

. Do I have the option of Add Margin?

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

. Where do I view my open positions?

You can view your positions on the OptionPLUS positions page of your www.icicidirect.com account. Alternatively you may also visit existing Open positions page by selecting OptionPLUS as product type to view open positions.

. Can I-Sec disable a scrip from trading in OptionPLUS during the day?

Yes, I-Sec can disable a scrip from trading in OptionPLUS product during the day.

. What will happen to the orders that I have placed in such disabled scrip's?

You will be unable to place new orders in such scrips. However, you can modify the orders already placed. To square off such positions you can modify cover SLTP order to a market order.

.Can I convert OptionPLUS position under a contract to Options position or vice versa ?

No. Presently, you cannot convert OptionPLUS position under a contract to Options position or vice versa.

. What would be the brokerage payable on these trades?

The Brokerage for OptionPLUS orders would be the existing brokerages charged currently for Options orders based on the brokerage plan opted by you. You can refer the latest brokerage schedule on our website www.icicidirect.com on the path Customer service page > Important Information > Brokerage.



FAQ (SHARES AS MARGIN)     FAQ (FUTURES)      FAQ (FUTURES ROLLOVER)      FAQ (FuturePLUS Normal Margin)     FAQ (FuturePLUS Stop Loss Limit Margin)      FAQ (OPTIONS)     FAQ (OptionsPLUS)     FAQ (FNO MARGIN DEBIT /CREDIT PROCESS)
    FAQ(Global Indices)    Specific FAQs on BSE

. What forms of Margin are acceptable for taking futures , options and Margin positions?

For Futures, Options & Margin 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 depositing securities allocated from your demat account).

For Futures & Options, 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). For Margin (Client and Broker mode) position, the limit granted is a sum of (a) & (b) and the margin is blocked on the individual positions first from Securities limit and then from Cash limit.

Though securities limit is granted for exposure to F&O and Margin 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 and Margin positions, Convert To Delivery (CTD) in case of Margin positions and brokerage (inclusive of other charges) applicable on the transactions.

. When should cash be made available for settlement dues?

Cash should be made available in your bank account at the end of trading hours on the date on which the amount is due as per the schedule in the 'Cash Projections' page.
For example,
(a) All Futures & Options obligations are settled by exchange on T+1 basis but the scheduled date of debit from your bank account is day T itself
(b) All equity obligations are settled by exchange on T+2 basis but the scheduled date of debit from your bank account is day T+1 .

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

Pay-in is normally made from your allocation to Equity and F&O from your bank account. In case this allocation is insufficient, ICICI Securities reserves the right to debit even unallocated clear funds available in your linked bank account.
In case the allocation and clear funds from your bank account is not sufficient to meet the pay-in obligations for Equity and F&O, ICICI Securities can sell appropriate quantity of securities deposited as margin. The proceeds of the securities sold will then be utilized to meet the pay-in obligations for Equity and F&O.

. How do I deposit Securities as Margin?

From the securities you have allocated from your demat account which you have not already sold, you can just specify the quantity to be deposited as margin.
First see the securities that you have already deposited by clicking on the 'Deposited Securities' link. Thereafter, click on the 'Deposit/Create Limit ' sub-link. Here, you can specify the quantity that you wish to deposit out of the allocated quantities free to be deposited. You can even deposit all the allocated quantities in one go by clicking on the 'Deposit All' button. Allocated quantities free to be deposited will be displayed on this page. This requires that you must have first allocated securities from your demat account in the 'Demat Allocation' page in the Equity section.

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

Limits become available against the shares deposited as margin immediately.

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

On depositing securities, Total Securities limit will increase immediately by the 'Value of deposit after Haircut' indicated on the 'Deposit/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 closing price of a stock on the previous day is specified as the valuation price. The haircut% for all eligible stocks can be seen on the 'Stock List' page. The valuation price and the haircut% for all stocks available for deposit can also be seen in the 'Deposit/Create Limit' page
The limit arising out of securities deposited can be seen on the 'Modify Securities Limit' and Deposited Securities links on the Shares as Margin page.
Total Current Limit for trading in the respective segment would be arrived at by aggregating the following:
(a) Allocation of funds from bank account (voluntary in the form of 'Bank Allocation and involuntary in the form of 'Block for Trade')
(b) Equity or F&O Securities allocation
(c) Settlement balances (net)
The details of total securities limit arising out of individual securities deposited can be seen on the Deposited Securities link under Shares as Margin page.

.Can I immediately start trading using the limit arrived on depositing securities as margin?

You will have to first allocate the securities limit for trading separately to Equity and or F&O segment as per your requirement using 'Modify Securities Limit' link under 'Shares as Margin' page. Once you have allocated securities limit, you will be immediately able to use your securities limit for trading in Equity (margin product only) and or F&O segment.

.Do I have to allocate full securities limit for trading or can I do part allocation of the total securities limit ? Where can I see my allocated securities limit for trading in Equity and F&O segments?

You can allocate part of the total securities limit for trading in Equity and or F&O segment and the unallocated securities limit will be available as 'Net Withdrawal Balance' under 'Modify Securities Limit' link on Shares as Margin page. The net withdrawal balance is the securities limit balance which you can allocate any time for further trading in Equity and or F&O segments.

The allocated securities limits would be visible on the Limit pages under Equity and F&O trading sections respectively. However, the maximum securities limit that can be utilised in both the segments taken together cannot exceed the total securities limit displayed under the 'Modify Securities Limit' link under the Shares as Margin page.

.Can I deposit any security lying in my demat account as Margin?

We have enabled only select securities which meet the criteria for liquidity and volume for depositing as Margin. This list can be seen on the Stock List page.

Further, balances of only these securities are available when you access the Deposit/Create Limit sub-link as explained in the previous answer.

Inspite of being a security eligible for deposit, its deposit may not be permissible in either of the following scenarios :
(a) the quantity of the securities deposited is less than the minimum allowable quantity
(b) the quantity of the deposit of a particular security including previous deposits of the same security is in excess of a specified maximum quantity allowed to be deposited
(c) the quantity of the deposit of a particular security including previous deposits of the same security including other clients also is in excess of a specified quantity

.What do you mean by "Modify Securities Limit? ?

Once you have deposited securities you can allocate Securities Limit for trading in Equity and or F&O from Modify Securities Limit link under Shares as Margin page. This page will display details like Total Securities Limit, Equity Shares as Margin Allocation, F&O Shares as Margin Allocation, Net Withdrawal Balance, Equity Free Securities Limit and F&O Free Securities Limit. You will not be able to use this Total Securities limit for trading in Equity and F&O unless you allocate it segment-wise. Further, you can also add or reduce the allocation in each segment through this Modify Securities Limit page.

.What do you mean by Total Securities Limit?

The limit created from depositing the shares as margin is called as Total Securities Limit. The Total Securities Limit is required to be allocated to Equity and F&O segments for trading. Post allocation it is the sum of Net Withdrawal Balance, Equity Shares as Margin Allocation and F&O Shares as Margin Allocation.

.What do you mean by Equity Shares as Margin Allocation?

Equity Shares as Margin Allocation is the deposited securities limit which is allocated for trading in Equity segment. When you allocate an amount from your Total Securities limit to Equity segment, the allocated amount is displayed under Equity Shares as Margin Allocation. This allocation can be used for trading in Equity segment for trading in Margin product only.

. What do you mean by F&O Shares as Margin Allocation?

F&O Shares as Margin Allocation is the deposited securities limit which is allocated for trading in F&O segment. When you allocate an amount from your Total securities Limit to F&O segment, the allocated amount is displayed under F&O Shares as Margin Allocation. This allocation can be used for trading in F&O segment only.

. Can I use securities limit allocated in Equity for trading in F&O and vice versa?

No. The allocated securities limit is segment specific and can be used only for the segment in which you have allocated the securities limit. But if there is free securities limit under a particular segment then the same can be reduced and reallocated to the other segment.
For example;
You have deposited securities for which you have got a total securities limit of Rs. 1,00,000/- and you have allocated Rs. 80,000/- to Equity and Rs. 20,000/- to F&O. You have used Equity securities limit of Rs. 50,000/- thereby Rs. 30,000/- is free. If you wish to increase the securities limit to trade in F&O you can reduce this free securities limit of Rs. 30,000/- from Equity and add this to F&O securities allocation. Thereby, having F&O Shares as Margin allocation of Rs. 50,000/-

.What do you mean by Net Withdrawal Balance?

The unallocated securities limit will be available as Net Withdrawal Balance under Modify Securities Limit link on Shares as Margin page. The net withdrawal balance is the securities limit balance which you can allocate at any time for further trading in Equity and or F&O segments. The net withdrawal balance would not be considered towards margin requirement for Equity and / or F&O segment neither for taking new positions nor towards additional margin requirement arrived during the intra day / EOD mark to market process run by I-Sec.

Net Withdrawal Balance = Total Securities Limit- Equity Shares as Margin Allocation- F&O Shares as Margin Allocation

.What do you mean by Free Securities Limit for Equity?

The allocated securities limit for Equity which remains unused is called as Free Securities Limit for Equity. This free Equity securities limit can be used for further trading or can be reduced from Equity allocation and your net withdrawal balance will accordingly increase.

.What do you mean by Free Securities Limit for F&O?

The allocated securities limit for F&O which remains unused is called as Free Securities Limit for F&O. This free F&O securities limit can be used for further trading or can be reduced from F&O allocation and your net withdrawal balance will accordingly increase.

.What information is given on the Equity Limit page?

The Equity Limit page displays the amounts under Cash Allocation, Equity Securities Allocation, Current Cash limit, Current Securities Limit and the Total Current Limit for selected exchange and settlement (explained ahead).
The settlement balances section shows the utilization of Securities & Cash limits.

.What do you mean by Current Cash Limit under Equity Limits?

Current Cash Limit under Equity Limits is the free cash limit available, which is the unutilised cash limit out of the total cash limit allocated by you. The current cash limit can be utilized by you for taking further positions in the Equity Segment.

For Eg.:
You have allocated Rs. 10,000 in cash for trading in Equity segment. You have utilized Rs. 7000 for trading in Equity Margin. Thereby, the free cash limit available is Rs. 3000 which will be displayed as Current Cash Limit on the Equity Limit page.

.What do you mean by Current Securities Limit under Equity Limits?

Current Securities Limit under Equity Limits page is the free securities limit available for further trading in Equity segment. This is the unutilised securities limit out of the total Equity Securities limit allocated by you.

For Eg.:
If you have allocated Securities Limit worth Rs. 16,000 to Equity segment and Rs. 7000 is utilised towards trading in Equity then the balance securities limit of Rs. 9000 in Equity will be displayed as Current Securities Limit under the Equity Limit page .

.What is meant by Total Current Limit under Equity Limits?

Total Current Limit under Equity means the unutilised limit available for further trading in Equity and is the sum of Current Cash Limit and Current Securities Limit .

.If I have both Cash and Securities limit then will my Cash limit be blocked on on placement of order or Securities limit?

1. In case you are trading in Equity: If you have both Cash and Securities limit then on placement of Equity margin order , your available current securities limit will be utilized first for the margin required, until it is completely exhausted. Current Cash Limit will be blocked for Equity margin orders only after your securities limit is completely exhausted.
For Eg., if you have placed Margin product order in Equity with margin requirement of Rs. 15000 and your current cash and securities limit are Rs. 15000 and Rs. 10000 respectively. Then on placing this Equity margin order, first your entire securities limit of Rs. 10000 will be blocked for margin required and then the balance margin required of Rs. 5000 will be blocked from the available Current Cash limit.

2. In case you are trading in F&O: If you have both Cash and Securities limit then the total limit under F&O is fungible and the sum of cash and securities limit is displayed as one Current limit which is available for F&O trading. On placement of F&O orders the current limit is utilised without bifurcating cash and securities limits.

.In what manner Equity limits will be released on margin product order cancellation or on margin product position square off?

On cancellation of Equity margin product order(s) or on square off of Equity margin product position(s), the margin amount will be first released to the Cash Limit and then to the Securities Limit.

. How will my Equity Cash Limit be impacted if my margin position is squared off at a loss and my Current Cash Limit is less than the loss amount?

In case your Equity margin position is squared off at a loss and you do not have sufficient cash limits to cover the loss then in such a case your Equity Current Cash Limit will display a negative amount for the shortfall loss that could not be covered through your current cash limits. For Eg. If your margin position is squared off at a loss of Rs. 300/- and your Current Cash limit is Rs. 100/- then the loss of Rs. 300/- will be blocked from the Current Cash Limit and since the Current Cash limit can cover only Rs. 100/- out of the loss of Rs. 300/- the shortfall loss of Rs. 200/- will be displayed as negative Current Cash Limit for Equity.

.Why does the total securities limit arising out of securities deposited as margin changes every day and sometimes even during the day ?

This is because it is dependent on the valuation of the securities deposited as margin. The total securities limit 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 closing price of a stock on the previous day is specified as the valuation price. Hence, the limit arising out of securities deposited as margin is recalculated every day when the new closing price for the securities is received. Limit may also change on account of changes in haircut% effected by ICICI Securities. The above changes are also carried out during trading hours taking into consideration the latest current market price of the securities. 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 Equity/Future positions is reduced from any one or more positions at the discretion of ICICI Securities. This may result in some positions having less than the minimum margins in case of Equity margin / futures positions leading to square off of the positions/cancellation of the orders. The trigger price for squaring off the option positions is also recalculated leading to earlier squaring off of option positions/cancellation of option orders.

Therefore, where you have taken Equity Margin /F&O 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 deposited as margin?

The securities deposited will subsequently be pledged in favour of ICICI Securities in due course.

When you make a deposit, a separate request is created to pledge each security. The status of these requests can be tracked in the Request Book sub-link under the Shares as Margin link in the F&O/Equity 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 Quantity Blocked in the Deposited Securities page in the F&O/Equity section and as Blocked for Margin in the Demat Allocation page in the Equity 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.

Once the pledge creation is initiated on your behalf (i.e. the status in the Request Book changes from Requested to In Process status), the same appears in the Pledge Book sub-link under the Shares as Margin link in the F&O/Equity section. You can view the pledge order no. allotted by the Depository for each pledge creation here.

. Do I have to deposit securities as margin separately for Equity and F&O?

No. There is a common deposit of securities for margin for both Equity and F&O. Once the securities are deposited successfully, securities limit is created immediately and then this securities limit needs to be allocated separately for trading in Equity and or F&O segments respectively.

.How do I withdraw securities deposited as Margin?

Securities deposited as margin are subsequently pledged to ICICI Securities from your demat account. Therefore, once securities are deposited as margin, there are two scenarios possible :

(a) they are just blocked for margin (appearing as Quantity Blocked in the Deposited Securities link under the Shares as Margin page on the F&O/Equity section and appearing as Blocked for Margin in the Demat Allocation page on the Equity section)
(b) they are actually pledged in favour of ICICI Securities (appearing as Quantity Pledged in the Deposited Securities link under the Shares as Margin page on the F&O/Equity section)

In case of (a), you can just go to the Request Book sub-link under the Shares as Margin link in the F&O/Equity section, select Reduce for the particular pledge request and specify the quantity to be reduced.

In case of (b), you can go to the Deposited Securities page where a link for Withdraw appears against the Quantity Pledged. You can click on the link and specify the quantity to be withdrawn. In case, in the Request Book sub-link under the Shares as Margin link in the F&O/Equity 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 Free Securities Allocation for Equity, Free Securities Allocation for F&O and Net Withdrawal Balance (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 F&O/Equity section)

. Do I have to withdraw securities as margin separately from Equity and F&O?

No. You just need to give a single withdraw request against the securities deposited since there is a common deposit of securities for margin for both Equity and F&O.

.Immediately on withdrawing securities as margin, by how much do limits decrease ?

On withdrawing securities deposited as margin, total Securities limit decreases immediately by the Value of deposit after Haircut indicated on the Withdraw/ Reduce page. This is arrived at for each security as per the following formula :
(Quantity of the stock being withdrawn* Valuation Price of the stock ) * (1 - Haircut% for the stock)

.What happens to the securities withdrawn as margin?

Withdrawal may be done in two ways :
(a) Reduce out of a deposit request in the Request Book sub-link under the Shares as Margin link in the F&O/Equity section for which a pledge creation is yet to be initiated on your behalf i.e. in Requested status (appearing as Quantity Blocked in the Deposited Securities page in the F&O/Equity section and appearing as Blocked for Margin on the Demat Allocation page of the Equity section)

(b) Withdrawal out of Pledged Quantity from the Deposited Securities page (appearing as Quantity Pledged in the Deposited Securities page in the F&O/Equity section)

In case of (a), the quantity withdrawn is immediately released and reduced from both (i) Quantity Blocked in the Deposited Securities page in the F&O/Equity section and (ii) Blocked for Margin in the Demat Allocation page in the Equity section. As a result, the Total securities limit also reduces.

In case of (b), the pledge(s) is/are closed to the extent of the withdrawal request in due course. When you make a withdrawal, a separate request is created to initiate the closure of the pledge(s). The status of this request can be tracked in the Request Book sub-link under the Shares as Margin link in the F&O/Equity section. However, the quantity withdrawn is immediately reduced from Quantity Pledged in the Deposited Securities page in the F&O/Equity section. As a result, the total securities limit also reduces. Before the pledge closure is initiated (i.e. it is in Requested status), you can add/reduce the quantity to be withdrawn by accessing Add/Reduce link against the withdrawal request in the Request Book sub-link under the Shares as Margin link in the F&O/Equity section.

Multiple pledge closures 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 pledge closure(s) is/are initiated (i.e. the status changes from Requested to In Process status), the same appear(s) in the Pledge Book sub-link under the Securities Deposited link in the F&O/Equity 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 deposited securities in case I do not make cash available for any settlement dues ?

ICICI Securities at its discretion would place a 'Spot' sell order at 'market' in BSE for the required quantity of securities deposited as margin on T+2 day for shortfall and negative limits in Equity and on T+1 day for shortfall in F&O. For the shortfall and negative limits in Equity and F&O, ICICI Securities can at its sole discretion spot sell securities deposited as margin earlier than the above mentioned time lines if there is a significant fall in the market value of securities given as margin. Accordingly, you are required to bring in funds in your bank account to meet settlement dues on a timely basis to avoid sopt sell of securities.

The sale proceeds of this sale will be utilized to meet the pay-in shortfall of Equity and F&O. If any excess amount is realized out of the sale proceeds then it will be credited to your linked bank account and blocked for trade as allocation in the following manner :

1. System will first see if there is any open position in F&O, if yes then the entire excess amount will be blocked for trade under F&O.
2. If there is no open position under F&O system will check if there is open margin position under Equity, if yes then the entire excess amount will be blocked for trade under Equity.
3. If there is no open position in F&O and Equity then the entire excess amount will remain credited in your bank account under your clear bank balance. However, you can reduce the same if required. Normal 'spot' brokerage is applicable for such sales. Such orders can be viewed in the Equity Order book which are separately identifiable. The quantity so sold will appear as 'Block for Sale' in the 'Deposited Securities' page in the F&O/Equity section.

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

. Can I Spot sell the pledged shares if I have unexecuted Margin orders or open positions in Equity segment?

Yes, you can spot sell the pledged shares if you have unexecuted Margin orders or open positions (Broker as well as client mode including positions open in Pending for Delivery page).

.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 applied by ICICI Securities at its discretion to cover for possible price losses till the order reaches the market and brokerage and statutory levies on such trades. 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 22 %
Client has a shortfall of pay-in Rs. 3,00,000/-
Value of shares to be invoked will be Rs. 3, 66,000/-.

You have pledged the following shares :

Scrip Qty Closing price Value
BHEL 2000 150 300000
ACC 880 75 66000
    Total 366000

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

Yes, you can also sell securities deposited as margin.

Securities deposited as margin are subsequently pledged to ICICI Securities from your demat account. Therefore, once securities are deposited as margin, there are two scenarios possible :

(a) they are just blocked for margin (appearing as Quantity Blocked in the Deposited Securities page in the F&O/Equity section and appearing as Blocked for Margin in the Demat Balance page in the Equity section)
(b) they are actually pledged in favour of ICICI Securities (appearing as Quantity Pledged in the Deposited Securities page in the F&O/Equity section)

In case of (a), you have to first reduce the securities and then sell them.

In case of (b), a link for Sell appears against the Quantity Pledged. You can click on the link and then place a spot sell order. These orders can also be limit orders.

In case of spot sell, the sale proceeds will be first utilized to meet the pay-in shortfall and negative limits under Equity and F&O segments. If any excess amount is realized out of the sale proceeds then it will be credited to your linked bank account and blocked for trade as allocation in the manner specified in the above answer. 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 deposited that has not already been sold either by ICICI Securities or by yourself (appearing as Block for Sale in the Deposited Securities page in the F&O/Equity section). However, if there is pending Withdrawal request out of the Pledged Quantity in a scrip, then that scrip is not permitted to be sold.

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

ICICI Securities would invoke the securities pledged in favour of ICICI Securities to debit the shares from your demat account and meet the obligations to pay-in the securities. On invocation, the Pledged Quantity in the Deposited Securities page will reduce and also the securities limits will be reduced to that extent. Details of such invocations would appear in the Pledge Book sub-link under the Shares as Margin link in the F&O/Equity section.

.Are there any separate charges for the above transactions?

No separate charges are levied by ICICI Securities (except for spot brokerage and statutory levies as per applicable rates on the sale of securities deposited as margin).

However, normal charges will be levied by ICICI Bank in respect of the demat account for pledge creation, closure and invocation transactions. All such transactions with reference nos. from the Depository are listed in the Pledge Book sub-link under the Shares as Margin link in the F&O/Equity section.

.Can I place withdrawal and spot sell requests simultaneously for the same scrip on the same date?

On successful spot sell of shares ICICI Securities places an Invocation request to debit the shares from your demat account. You will be able to place withdrawal request and spot sell simultaneously for same scrip on same day, provided the status of first request (which can be either Withdrawal or Invocation) is not shown as Requested/In process in the Request Book.

First request Status of request Second request Remarks
Withdrawal Requested/ In process Invocation System will not allow to place second request
Invocation Requested/ In process Withdrawal System will not allow to place second request
Withdrawal Completed / Rejected Invocation System will allow to place second request
Invocation Completed / Rejected Withdrawal System will allow to place second request

. Can I place multiple withdrawal requests against the same scrip on the same date ?

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

First request Status of request Second request Remarks
Withdrawal In process Withdrawal System will not allow to place second request
Withdrawal Requested/Completed/Rejected Withdrawal System will allow to place second request

.Can I place multiple spot sell requests against same scrip on same date ?

Yes, you can place further spot sell requests of pledged shares if the Invocation request placed by ICICI Securities for the earlier spot sell done do not show the status as "In Process" .The system will not allow you to place further spot sell till the processing is completed for earlier Invocation request(s).

First request Status of request Second request Remarks
Invocation In process Invocation System will not allow to place second request
Invocation Requested/Completed/Rejected Invocation System will allow to place second request

 

FAQ (FNO MARGIN DEBIT /CREDIT PROCESS)    FAQ ( FUTURES )     FAQ (FUTURES ROLLOVER)      FAQ (FuturePLUS Normal Margin)     FAQ (FuturePLUS Stop Loss Limit Margin)      FAQ (OPTIONS)     FAQ (OptionsPLUS)     FAQ (SHARES AS MARGIN)
    FAQ(Global Indices)    Specific FAQs on BSE

What forms of Margin are acceptable for taking futures and options positions?

For futures and options positions, margin can be given in the following forms:

  1. Cash (by way of allocation of funds from your bank account)
  2. Specified securities (by way of pledging securities allocated from your Demat account in favour of ICICI Securities).

On what positions would the Margin be debited?

The Margins would be debited on Futures buy open positions, Futures sell open positions and Options sell open positions.

Will any Margin get debited if I have taken the positions by pledging shares in my Demat Account?

Yes, the margin will get debited in any of the following scenarios :

  1. In case the total margin required on your total open positions is met by the pledged shares alone, in such case no funds would be debited as margin from your account even if there are idle funds lying in your linked bank account.
  2. In case the total margin required on your total open positions is partially met by the pledged shares, in such case the balance required margin amount at end of day shall get debited from your linked bank account.
  3. In case there are no pledged shares in your account, then the entire required margin amount at end of day shall get debited from your linked bank account.

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 FNO allocation to the extent of limit utilized after adjusting shares margin available.

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 - till 07:00 pm.

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 FNO section of I-Direct web site.

The same can be done under the following scenarios:

  1. By pledging additional shares lying in your demat account up to the extent of margin required.
  2. By squaring off the open positions.

The released margin amount will immediately get credited to the FNO 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.

To illustrate,

On T-1 day, Rs.100000 margin was required on your total open positions (Rs.60000 as shares and Rs.40000 cash debited from your allocation and kept in I-Sec Margin account) and supposing on T day eod, the new margin requirement is Rs.90000. At the same time suppose you have pledged 50000 as shares as margin on T day itself. In such case, system would release (credit) 40000 cash in your bank allocation.

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

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

FAQ(Global Indices)    FAQ ( FUTURES )     FAQ (FUTURES ROLLOVER)      FAQ (FuturePLUS Normal Margin)     FAQ (FuturePLUS Stop Loss Limit Margin)      FAQ (OPTIONS)     FAQ (OptionsPLUS)     FAQ (SHARES AS MARGIN)
    FAQ (FNO MARGIN DEBIT /CREDIT PROCESS)     Specific FAQs on BSE

Where can I view futures contracts for trading in global indices?

Future contracts enabled for trading in global indices S&P 500 and DJIA as underlying, will be displayed on the site when you select contracts either through the 'Place order' link or the Stock list page on www.icicidirect.com.

Will there be separarte market hours to trade in derivative contracts on these global Indices?

No, you can trade in derivative contracts on these global Indices during current Indian stock market trading hours only.

I am an NRI customer, will I also be able to trade in derivative contracts on these global Indices?

No, as per regulations NRI customers are not allowed to trade in the derivative contracts on these global Indices .

What is the tick size (minimum movement in price) or the price steps that I can take while trading in derivative contracts on these global indices?

The tick size (minimum movement in price) or price steps would be Rs. 0.25 for S&P 500 futures and Rs. 2.5 in DJIA futures.

What is the Expiry Day for the derivative contracts traded in global Indices?

For the derivative contracts traded with global Indices as the underlying, the expiry day will be the third friday of the expiry month.

When will the derivative contracts expire in case the third Friday of the month is a holiday in either USA or India?

In case the third Friday of the month is a holiday in either USA or India, the contract shall expire on the preceding business day in both USA and India in the expiry month.

What is the final settlement price for derivatives contract of global indices?

All open positions at close of last day of trading shall be settled to the Special Opening Quotation (SOQ) of the S&P 500 and DJIA Index or as may be prescribed by exchange from time to time.
SOQs are calculated as per normal index calculation procedures except that the values for the respective components are taken as the actual opening values for each of the component equities on either the New York Stock Exchange (NYSE) or Nasdaq.

    Specific FAQs on BSE    FAQ ( FUTURES )     FAQ (FUTURES ROLLOVER)      FAQ (FuturePLUS Normal Margin)     FAQ (FuturePLUS Stop Loss Limit Margin)      FAQ (OPTIONS)     FAQ (OptionsPLUS)     FAQ (SHARES AS MARGIN)
    FAQ (FNO MARGIN DEBIT /CREDIT PROCESS)    FAQ(Global Indices)

Can I now trade in Futures and Options on BSE?

Yes you can now trade in Index Futures and Options on BSE. Only contracts that meet the liquidity criteria will be enabled for trading at the discretion of I-Sec.

Can I now trade in Index and Stock Futures and Options on BSE ?

You can trade only in Index Futures and Options on BSE. Currently, stock futures and options will not be enabled for trading on BSE.

Can NRIs trade on BSE?

No. NRIs can continue to trade on NSE only.

Will I get reduced margin benefit on spread position taken on BSE?

You can take spread positions on BSE but you will not get any reduced margin benefit for such spread positions taken on BSE. You can continue to enjoy the reduced margin benefit on your spread positions taken on NSE.

Will I get SPAN margining on BSE if I am mapped to SPAN margining on NSE?

Currently, SPAN margin option is available only for NSE and even if you are mapped to SPAN for NSE, non SPAN margining would be applicable to your BSE F&O transactions. The normal non SPAN margin related FAQs have been provided in the above section for Futures and Options.

FAQ (FuturePLUS Stop Loss Limit Margin)    FAQ ( FUTURES )     FAQ (FUTURES ROLLOVER)      FAQ (FuturePLUS Normal Margin)     FAQ (OPTIONS)    FAQ (OptionsPLUS)     FAQ (SHARES AS MARGIN)    FAQ (FNO MARGIN DEBIT /CREDIT PROCESS)     FAQ(Global Indices)    Specific FAQs on BSE

. What is FuturePLUS with Stop Loss Limit Margin (i.e. With Cover SLTP Order)?

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

. What is fresh order?

The order which is placed for creating the position is called fresh order. The fresh order is always a Market order.

. Can I place a limit fresh order?

No, fresh order is always a market order and limit fresh order under this feature is not allowed.

. What is a cover order?

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

. Can I place a cover profit order?

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

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

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

. Can I place FuturePLUS with Stop Loss Limit Margin orders in all contracts?

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

. From where do I place FuturePLUS with Stop Loss Limit Margin orders ?

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

. What is a Cover Stop Loss order?

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

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

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

Important
Please note that in a buy order, the SLTP should be a price lower than the buy price i.e less than the last traded price. An SLTP cannot be placed for a price that has already been surpassed by the market when the SLTP is being placed. Similarly, in case of a stop loss sell order the SLTP should be greater than the sell price of fresh order i.e. higher than the last traded price.

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

Following details should be provided to place a fresh order;

  1. Exchange
  2. Stock Code
  3. Contract Details
  4. Action (Buy/Sell)
  5. Quantity
  6. Order Type - Market

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

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

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

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

. What are the details for a cover SLTP order?

The details for a cover SLTP order are as follows:

  1. Exchange
  2. Contract Details
  3. Action (Buy/Sell)
  4. Quantity
  5. Order Type - Limit
  6. Stop Loss Trigger Price
  7. Limit Price
The first 4 values would be automatically picked up from the Fresh order details. The Stop Loss Trigger Price value is required to be entered by you which would be the trigger price and the order gets activated once the market price of the relevant security reaches or crosses this threshold price. The value for limit price would automatically appear in the Limit Price field based on the minimum difference % for the stock between the Limit Price compared to the Stop Loss Trigger Price (SLTP) or can be entered by you .

. Can I cancel the cover SLTP order?

No, cover SLTP order cannot be cancelled.

. Can I modify the cover SLTP order?

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

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

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

The maximum quantity that can be submitted for fresh orders is the total of best 5 Bid/Offer quantities that is available in the best bids and offers. If the quantity that you input is greater than the quantity available in the best 5 bids and offers then the order will not go through.

Assuming that you want to place a buy order for 5000 quantity @ 100, and the first 5 offer quantity available for the buy order are as under:
Offer Qty. Offer Price
1500 96
1000 97
500 97.5
500 98
100 98.5

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

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

For fresh orders the price would be calculated as the weighted average price of the best 5 bids and offers available for calculating the margin requirement. If the following offers are available in the best 5 bids and offers and the client places a Buy order for quantity of 600.
Best 5 bids Best 5 offers
Qty. Price Qty. Price
150 8 150 11
150 5.5 150 11.5
300 5 300 12
0 0 150 13
0 0 0 0


Calculation of Buy price

Qty Price Value
150 11 1,650
150 11.5 1,725
300 12 3,600
600 - 6,975


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

. What is the margin that is charged on the fresh order?

Margin in case of fresh order is charged to the extent of maximum possible loss that you may incur plus a additional margin calculated at the SLTP margin % specified, if any, for the underlying in the stock list page. It is calculated as {(Weighted average price of fresh order - limit price of cover SLTP order) * Quantity of shares} + {(Weighted average price of fresh order * quantity of shares) * SLTP margin %, if any, for the stock}
Margin is blocked as per the above formula on order placement and adjusted further based on the actual execution price.

Assume you take a buy position for the fresh order of 1000 quantity at current market price of 100/-. Simultaneously you also place the Sell (cover SLTP order) of 1000 quantity as Limit price 90/- and SLTP 95/-. The SLTP margin percentage for the scrip is either 0 or 10%.

In this case margin amount would be blocked as (Weighted average price of fresh order * quantity of shares)* additional margin% +( weighted average price of fresh order - limit price of cover SLTP order)* quantity of shares
In case the additional margin percentage is 0%
(100*1000)*0%) +(100-90)*1000) = 10,000/-

In case the additional margin percentage is 10%
(100*1000)*10%) +(100-90)*1000) = 20,000/-

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

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

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

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

In the above example where additional margin % is 10%, if you modify the SLTP to 98/- and limit price to 92/-.
The amount to be blocked would be recalculated as: (100*1000)*10%) +(100-92)*1000) = 18000/-
The excess amount of 2000/- would be released and added in your limit.

In the above example where additional margin % is 10%, if you modify the limit price of your cover SLTP order to 88/- difference amount would be recalculated as
(100*1000)*10%) +(100-88)*1000 = 22000/-
Additional amount of 2000/- would be blocked. If limits are insufficient then you will be unable to modify the order.

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

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

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

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

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

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

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

. How does the concept of FuturePLUS with Stop Loss Limit Margin work?

Example
Assume you take a sell position for the fresh order of 1000 shares at current market price of 100/-. Simultaneously you also place the SLTP buy (cover order) of 1000 shares at SLTP 108/- and Limit price 112/-.

The above example can be analyzed as follows:

Apart from an additional margin on the fresh order value which is normally 0, the maximum loss amount would be blocked on the fresh order and cover SLTP order as difference between current market or weighted average price of Fresh order and limit price of cover SLTP order. (112-100)*1000= 12,000/-. The fresh order is a market order which will get executed at the market price available at that point of time. If the order gets executed as 101/-, revised amount of 1000/- would be released. The cover order would remain in the ordered state.

Current market price rises - Position is making a loss: Once the current market price starts rising and reaches 108/-, the cover SLTP order would be triggered to a limit order with price 112/-. The cover SLTP order would get executed at the best prices available up to the SLTP limit price of 112/-.

Current market price falls - Position is making a profit: You can choose to modify the buy cover SLTP order to a market order to immediately book profits at market price.

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

Yes, you would be able to place Cover SLTP Order from the Open Positions screen where a link named 'Order' will appear if the same is rejected by Exchange.

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

In case of FuturePLUS with Stop Loss Limit Margin product, all the positions created for the day are expected to be squared off by the customers before the market closes as this is an Intra day product. In case, if the positions still remains open at the end of day, I-Sec on best effort basis would initiate the Square off process at market price for all the open positions. If for any reason position still remains open after end of day then it will be treated as Futures position by exchange and all obligations and margin as applicable to Futures would apply to such open positions. If sufficient margin is not available with you towards such open positions, exchange would levy a short margin collection penalty which I-Sec shall recover from you.

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

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

. Do I have the option of Add Margin?

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

. Where do I view my open positions?

You can view your positions on the Open Positions page of your www.icicidirect.com account.

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

Yes, I-Sec can disable a scrip from trading in FuturePLUS with Stop Loss Limit Margin product during the day.

. What will happen to the orders that I have placed in such disabled scrip's?

You will be unable to place new orders in such scrip's. However, you can modify the orders already placed. To square off such positions you can modify cover SLTP order to a market order in both the exchanges.

. What would be the brokerage payable on these trades?

The Brokerage for FuturePLUS with Stop Loss Limt Marign orders would be the normal brokerages charged currently on similar lines to that of exsiting FuturePLUS orders. You can refer the latest brokerage schedule on our website www.icicidirect.com on the path Customer service page > Important Information > Brokerage.