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 (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). The limit granted is a sum of (a) & (b) and the margin is blocked on the individual positions on the overall basis and not in any proportion of (a) & (b). Though securities limit is granted for exposure to F&O 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 both futures and options positions and brokerage applicable on the transactions. It may be noted that in the Equity segment, only Cash is acceptable.
