Is margin blocked on all Currency future orders?
No. Margin is blocked only on such Currency future orders, which result into increased risk exposure. In case you have placed orders in a Near month contract and the middle month contract of the same underlying, for calculating the margin at order level,value of all buy orders and sell orders (in the same underlying-group) are added. Margin is levied on the higher of two i.e. if sum of buy orders is higher than the sum of the sell order value, all 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 No. of Lots Qty Rate Order Value No. of Lots Qty Rate Order Value FUT-USDINR-27-Aug-2009 1 1000 45 45000 FUT-USDINR-28-Sep-2009 1 1000 49 49000 2 2000 52 104000 FUT-USDINR-28-Oct-2009 1 1000 40 40000 Total 2 2000 94000 3 3000 144000 As explained above, margin is levied on the higher of Buy and Sell Order
