Margins

Customer's funds put up as security for a guarantee of contract fulfilment at the time a futures market position is established.

Margins imposed on both long and short sides over and above the other margins, would be called additional margin.

The margins which are imposed only on one side, i.e. either on long side or short side would be called as special margin.

Tender period margin is imposed at such percentages as defined in the product/ contact specification. Such margin is imposed on incremental basis and applicable on both outstanding buy and sales side, which continues up to the expiry of the contract.

Tender Period margin is released for the position when Delivery Period Margin is imposed.

When a contract enters the delivery period at the end of its life cycle, delivery period margin is imposed as per contract specification. Such margin is applicable on all outstanding buy and sales side and continues up to the settlement of delivery obligation.

When a seller submits delivery documents alongwith surveyor’s certificate, his position is treated as settled and his delivery period margin to such extent is reduced. When a buyer pays money for the delivery allocated to him, his delivery period margin is reduced on such quantity for which he has paid the amount.

Extreme Loss Margin (ELM) is levied to cover the expected loss in situations that lie outside the coverage of the SPAN based initial margin.

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