Understanding Margin Report
Modified on: Fri, 22 Jul, 2022 at 5:34 PM
TABLE OF CONTENTS
Below is an example of how a daily margin statement looks
This refers to the segment in which you have traded.
|NSE-CM||NSE Cash Market |
|NSE-F&O||NSE-Futures & Options|
|BSE-CM||BSE - Cash Market|
|NSE-CD||NSE - Currency Derivative segment |
The date on which the trade is executed
This refers to your fund balance without considering your
a) T-day credits and debits of the F&O and Currency derivative segments and
b) T-day and T minus 1-day credits and debits of the equity cash segment.
The above are not considered as these are yet to be settled. Only clear credits (for which Pay-in and Payout obligation are settled with the Exchange) are considered.
Let’s understand this with an example.
If you trade only in Equity Cash, simply take the closing balance of your ledger on T minus 1 day and add or deduct funds deposited or withdrawn
If you trade in Equity Cash as well as in F&O,
a) simply take the closing balance on T minus 2 days
b) Add back any funds deposited and subtract funds withdrawn
c) Add back your F&O Obligation on T day
This will be your clear balance and will reflect in funds column.
Column B,C and D are the other form of Margins provided by you either in the form of pledged stocks or as Bank Guarantee/ FDR or any other form of approved margin.
Total Margin Available (F)
This is the total of all clear margins available till T day
Total Upfront Margin (G)
This is the minimum upfront margin required to take a position. This minimum margin calculation for each segment is given below for easy understanding
|Equity Cash||Minimum Margin + Additional Margin. This will be reported for T and T+1 day till the settlement occurs|
|Equity F&O||SPAN Margin + Extreme Loss Margin|
|Currency||SPAN Margin + Extreme Loss Margin|
Consolidated Crystallized Obligation / MTM (H)
This is the sum of MTM loss margin / Option Premium Payable in respective segment. This is the amount due or non-upfront margin which can be collected till T+1 day. The Crystallized Obligation in case of Commodity segment is the actual M to M margin.
Delivery (I )
This is the physical delivery margin charged by Exchange on ITM (In The Money) Options Contract which are held till expiry. Exchange starts charging this physical delivery margin from expiry minus 4 days and it is levied as a % of applicable margin on the underlying stock.
Excess/Shortfall w.r.t requirement by exchange/NSCCL (K)
This column shows the value of 'Total margin available' minus the value of 'Total requirement'
Margin Status (Balance with member/ Due from client) (M)
This column shows you the total free balance that is available for taking new trades the next trading day (unencumbered balance). Negative value in Column K indicates shortfall in Margin.
Important points to be noted:
When you sell shares from your Depository account, you will receive the credit in your ledger for sale amount with value date of T+2 days. However the client margin report is sent for T day. Thus it is possible that your funds column (A) may be zero and the report may indicate that you have funds due payable to the broker which is the sum of margins on your positions. These dues will automatically be reversed once your shares are delivered and sale proceeds received on T+2.
Note - Brokers are supposed to maintain separate ledgers for every segment. But as an industry norm, in the margin statement, all pay ins will be posted to the 'NSE EQ' segment, however, debits will be posted in the respective segment ledger and shown accordingly in the margin statement.