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 a lot of 200 in Infosys Technologies expiring on 27th November 2008 @ Rs.1315 and sell position for a lot of 200 in Infosys Technologies expiring on 25th December 2008 @ Rs.1312.50. This buy and sell position forms a spread against each other and hence called spread position. This spread position would be levied a lower margin % as against a single buy or sell position.
Calendar spread means risk off-setting positions in contracts expiring on different dates in the same underlying. For example, you take buy position for 20 MT in NCD-FUT-RBRRS4KTM-20-Feb-2006 @ 6550 per quintal and sell position for 10 MT in NCD-FUT-RBRRS4KTM-20-Mar-2006 @ 6850. 10 MT buy position in NCD-FUT-RBRRS4KTM-20-Feb-2006 and 10 MT sell position in NCD-FUT-RBRRS4KTM-20-Mar-2006 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 10 MT buy position in NCD-FUT-RBRRS4KTM-20-Feb-2006 would be non-spread position and would attract initial margin.
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.
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- 31 May 2007 @ Rs.150 and sell position for 100 shares in Fut – ACC- 28 Jun 2007 @ Rs.160. 100 buy position in Fut – ACC- 31 May 2007 and 100 sell position in Fut – ACC- 28 Jun 2007 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- 31 May 2007 would be non-spread position and would attract initial margin. ICICIdirect allows the spread position between near month and middle month contract only.
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 and 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.
