- Total Applicable Margin
- Var Margin Value
- Extreme Loss Margin Value
- Adhoc Margin Value
|VAR MARGIN||EXTREME LOSS
About Margin Calculator
The Equity Margin Calculator, allows you to input your Equity stocks position and understand your margin requirement.
How to use?
- Input single record at a time.
- To add additional rows, click on the "Add" button.
- To delete the row click on the corresponding “check box“ and click on the “Del” button.
- To edit a record – click on corresponding “check box” and click on the “Modify” button.
- Click on “Compute” to compute the margin for all records entered,
- Margin computation is based on the latest risk parameter
Value at Risk (VaR) Margin
- All securities are classified into three groups for the purpose of VaR margin
- For the securities listed in Group I, scrip wise daily volatility calculated using the exponentially weighted moving average methodology is applied to daily returns. The scrip wise daily VaR is 3.5 times the volatility so calculated subject to a minimum of 7.5%.
- For the securities listed in Group II, the VaR margin is higher of scrip VaR (3.5 sigma) or three times the index VaR, and it is scaled up by root 3.
- For the securities listed in Group III the VaR margin is equal to five times the index VaR and scaled up by root 3.
- The index VaR, for the purpose, is the higher of the daily Index VaR based on CNX NIFTY or BSE SENSEX, subject to a minimum of 5%.
- NSE Clearing may stipulate security specific margins from time to time.
- The VaR margin rate computed as mentioned above is charged on the net outstanding position (buy value-sell value) of the respective clients on the respective securities across all open settlements. There is no netting off of positions across different settlements. The net position at a client level for a member is arrived at and thereafter, it is grossed across all the clients including proprietary position to arrive at the gross open position.
- For example, in case of a member, if client A has a buy position of 1000 in a security and client B has a sell position of 1000 in the same security, the net position of the member in the security is taken as 2000. The buy position of client A and sell position of client B in the same security is not netted. It is summed up to arrive at the member’s open position for the purpose of margin calculation.
- The VaR margin is collected on an upfront basis by adjusting against the total liquid assets of the member at the time of trade.
- The VaR margin so collected is released on completion of pay-in of the settlement or on individual completion of full obligations of funds and securities by the respective member/custodians after crystallization of the final obligations on T+1 day.
- For more details please visit this link : https://www.nseindia.com/products-services/equity-market-margins
Disclaimer: Margin calculator is a tool only and margin numbers are indicative in nature. This tool is for informational purposes only. The information furnished is with no warranty as to accuracy or completeness of its contents and on condition that any changes, omissions or errors shall not be made the basis for any claim, demand or cause of action.