Can spread position be formed among all the contracts in existence?
Comm. Trade Services Limited (CTSL) 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. Where spread benefit is extended for positions across contracts, the Contract Details page would show those contracts earmarked within a common group. Let’s assume that NCD-FUT-RBRRS4KTM-20-Jan-2006 and NCD-FUT-RBRRS4KTM-20-Feb-2006 are included in a common spread benefit group and NCD-FUT-RBRRS4KTM-20-Mar-2006 is in a different spread benefit group. If you take buy position for 20 MT in NCD-FUT-RBRRS4KTM-20-Jan-2006 and sell position for 10 MT in NCD-FUT-RBRRS4KTM-20-Feb-2006, 10 MT buy position and 10 MT sell position would form spread. If you take buy position for 20 MT in NCD-FUT-RBRRS4KTM-20-Feb-2
Comm Trade Services Limited(CTSL) 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. Where spread benefit is extended for positions across contracts, the Contract Details page would show those contracts earmarked within a common group. Let’s assume that NCD-FUT-RBRRS4KTM-20-Jan-2006 and NCD-FUT-RBRRS4KTM-20-Feb-2006 are included in a common spread benefit group and NCD-FUT-RBRRS4KTM-20-Mar-2006 is in a different spread benefit group. If you take buy position for 20 MT in NCD-FUT-RBRRS4KTM-20-Jan-2006 and sell position for 10 MT in NCD-FUT-RBRRS4KTM-20-Feb-2006, 10 MT buy position and 10 MT sell position would form spread. If you take buy position for 20 MT in NCD-FUT-RBRRS4KTM-20-Feb-200
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 10
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 calculated and displayed for spread and non-spread contracts. Lets assume that Future – ACC- 31 May 2007 and Future – ACC- 28 Jun 2007 are included in spread definition and Future – ACC- 26 Jul 2007 is kept out of spread definition. If you take buy position for 200 in Future – ACC- 31 May 2007 and sell position for 100 in Future – ACC- 28 Jun 2007, 100 buy position and 100 sell position would form spread. If you take buy position for 200 in Future – ACC- 28 Jun 2007 and sell position for 100 in Future – ACC- 26 Jul 2007, 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 10
