Margin is the amount an exchange requires against an open trade. The exchange’s own risk model computes it, not this site. This page can explain how it works, not the figure. Margin scales with the notional exposure a trade controls. Trades that offset each other’s directional risk are often margined together for less than the sum of margining each one alone.
Definition and Formula
Margin is collateral set aside against the potential loss on an open futures or options trade. In India, the exchange computes it from a risk model. That model has a base part plus an extra part for near-term price moves. This site does not run that model. It does not publish a figure from it either.
This page can state the amount margin is worked out against: notional exposure. That is the value of the trade controlled at the current price. For one lot of a stock or index contract, it is just price times lot size. That is simple math, not a model.
A second point is worth stating plainly. Say two trades offset each other’s directional risk — for instance, a written option hedged by an opposite leg. The combined trade often carries less potential loss than the two legs would carry on their own. Exchange risk models often charge less in total for it. This is a description of how it works, not a rupee or rate figure.
This site does not publish margin figures, for three reasons together. The exchange sets and changes the rules. Brokers often add their own margin above the exchange floor. And a stale or rough number here would mislead more than printing none at all.
It scales directly with lot size. Three lots control exactly three times as much as one lot, at the same price. The exchange fixes lot size per contract. This site maintains and publishes that table.
Understanding notional exposure, and how offsetting trades work, helps in reading a margin figure obtained elsewhere. It does not replace getting that figure from the exchange or the broker where the trade is actually held.
Formula: Notional value of one lot = price × lot size — the amount a margin rate would be worked out against
A Worked Example
| Example price (₹) | 2,850.00 |
|---|---|
| Lot size (shares) — this site’s F&O reference | 500 |
| Notional value, 1 lot (₹) | 14,25,000.00 |
|---|---|
| Notional value, 3 lots (₹) | 42,75,000.00 |
Notional value is price times lot size — simple math, not a margin figure. This site’s F&O lot-size page publishes the same lot size shown here. An exchange or broker would charge a margin against this value. That margin is a separate number, worked out by the exchange, and this site does not work it out.
What This Number Tells You
These notional figures state the value controlled at the stated price and lot size — the amount margin scales against.
Three lots controlling three times as much as one lot is simple math. It does not depend on whatever margin rate a broker or exchange applies.
And What It Does Not Tell You
Neither figure is a margin requirement. This site does not work out exchange margin and prints no rate or rupee figure for it anywhere.
It says nothing about broker-level margin, which is often set above the exchange floor and differs from one broker to another.
It says nothing about whether a given pair of trades actually earns reduced combined margin. That depends on the exchange’s risk model and the specific trades involved, neither of which this page works out.
Frequently Asked Questions
Why does this site not show margin figures?
Exchange risk models set margin, and this site does not run those models. Brokers often add their own part above the exchange floor. A stale figure would mislead more than printing none.
What is notional value, and how does it differ from margin?
Notional value is price multiplied by lot size — what a trade controls. Margin is a fraction the exchange sets aside against that value. This site does not work out that fraction.
Why do offsetting positions often need less combined margin?
Their directional risks partly cancel each other out. Because of that, exchange risk models often treat the combined trade as carrying less potential loss. That loss is less than the two legs would carry margined on their own.
Does a bigger lot size mean more margin is required?
A bigger lot size means more notional exposure at a given price. Margin is worked out against that amount. The exact figure comes from the exchange’s model, not from this page.
Where can an actual margin figure be obtained?
From the exchange or from the broker where the trade is held. Both publish the current figure directly, which this site does not reproduce.