How can we help you ?

Choose the category to find the help you need

Announcements

Rollback of Direct Payout of Securities in MTF: What You Need to Know - Shares bought in MTF will not get auto-pledged...

F&O Back

Trading

Futures Trading

How Trigger Price is calculated for positions in same direction in near and mid month contracts where spread is allowed?

Trigger Price with positions in same direction in near and mid month contracts where spread is allowed is calculated as follows: Trigger Price with positions in same direction in near and mid month contracts where spread is allowed is calculated as follows: Example: If you take Buy position for 75 qty in Fut- NIFTY-26 Nov 2015 @ 8500 and Buy position for 150 qty in Fut- NIFTY-26 Dec 2015 @ 8525. IM% and MM% for NIFTY is 8% and 6% respectively. Trigger Price for Futures Current Month Buy/Sell Position: WAP on Contract Level -/+[( Executed Margin at Contract Level - (WAP on Contract Level*Contract Level Open Position Qty*Minimum Margin Percentage))/Contract Level Open Position Qty where Executed Margin at Contract Level will be calculated as (contract Level open position qty / total underlying open position qty) * Margin on Positions at Underlying Level. =8500-(51100-(8500*75*6%))/75 = 8328.67 Trigger Price for Futures Mid Month Buy/Sell Position: WAP on Contract Level -/+[( Executed Margin at Contract Level - (WAP on Contrarct Level*Contract Level Open Position Qty*Minimum Margin Percentage))/Contract Level Open Position Qty where Executed Margin at Contract Level will be calculated as (contract Level open position qty / total underlying open position qty) * Margin on Positions at Underlying Level. =8525-(102200-(8525*150*6%))/150 = 8355.17 Please note Trigger Price will be rounded up to the tick size for Buy positions and rounded down to the Tick size for sell positions.

How is the margin calculation done in case of calendar spread?

Spread position value is calculated by multiplying the weighted average price of position in far month contract and spread position quantity. Spread margin % is then applied to spread position value to arrive at spread margin. In the above mentioned example margin position of 250 qty in Future - RELIND- 31 Aug 2023 will be subjected to IM% and 250 spread position quantity would attract spread margin %. However, you will able to view only overall margin figure on open position page. Assuming IM and spread margin at 20% and 10% respectively, overall margin to be calculated as follows: (a) Spread Margin 250*2500*10% Rs. 1600 (b) Non-Spread Margin 250*150*20% Rs. 3000 (c) Overall Margin a+b Rs. 4600

Can spread position be formed among all the contracts in existence?

ICICIdirect would decide the contracts, which can form spread positions against each other. Only those contracts, which meet the criteria on liquidity and volume will be considered for spread positions. Technically, the stocks having low impact cost are included in spread definition. Separate margin is maintained and displayed for spread and non-spread contracts. ICICIdirect allows the spread position between near month and middle month contract only. 1 working day prior to the expiry of the contract, ICICIdirect will remove the expiring contract from the spread benefit. At this stage the client will have to provide complete margin required on the positions taken in the near month contract (expiring one). If limit is found insufficient then the position may come into the intra day MTM loop.

Is there any impact on the limit on execution of a buy/sale order?

If it is an execution of a fresh order (i.e. an order which would result into building up an open position), the margin blocked gets appropriately adjusted for the difference, if any, in the order price at which the margin was blocked and the execution price. Accordingly the limits are adjusted for differential margin. If it is an execution of a cover order (order which would result into square off of an existing open position), the following impact would be factored into the limits: a) Release of margin blocked on the open position so squared up. b) Effect of profit & loss on the square off of such a transaction. If an execution of an order resulting into building up spread position, impact on limits would be in terms of release of differential margin. For example, you are taking an open buy position for 250 shares in Future - ACC- 31 Aug 2023 @ 2500 and IM is 20%. Rs 125000/- would be blocked as an initial margin. Thereafter you take a sell position for 250 shares in Future - RELIND- 29 Sept 2023 @ 2600 and spread margin is 10%. Hence the execution of Future - RELIND- 29 Sept 2023 order is resulting into spread position. As explained above, margin required would be 250*2600*10% = 65000/- now. Hence the excess margin of Rs 60000/- (125000-65000) would be released and added into your trading limits. Continuing the above example, if you place an sell order for 250 shares in Future - RELIND- 31 Aug 2023 @ 2700, margin of Rs. 135000/- would be required to place this order. This margin would be required despite being a cover order to square off the open position in the same contract. Reason for the same is that the order now being placed by you would result into the increased risk exposure since the buy position of 250 shares in Futures - RELIND - 31 Aug 2023 has already been considered as position building up spread position. If buy position of 250 shares in Futures - RELIND - 31 Aug 2023 is squared off, sell position of 250 shares in Future - RELIND- 29 Sept 2023 @ 2600 would become non-spread position and subjected to margin at 20 % IM.

How to square off open position which is part of spread position and there is not enough trading limits to place a cover order?

Navigate to Open Position page and select the contract you want to square off. You can select multiple contracts by selecting the box besides them. Once selected you can click on the square off button to your close your open positions.

How do I see my open positions in Futures?

Navigate to Open Position page, you can view all open futures positions. The futures positions table gives details such as underlying, contract details, buy/sell position, open qty, cover order qty, base price, current market price, total margin blocked on the open position and order level margin at underlying-group level.

Where can I see my Available Margin on site?

Your Available Margin will be displayed on your Open Positions Page under 'Futures' product type in the F&O section.

How do you calculate Minimum Margin?

Minimum Margin is calculated by taking MM % instead of IM%. For spread position, Spread minimum margin % would be applied.

How do you calculate additional margin required when the available margin is below the minimum margin required?

In that case, margin required on executed position is re-calculated by taking CMP of respective position and IM % and spread margin % as the case may be. Available margin as calculated above should now be compared with the required margin and amount for additional margin call is arrived at. For example say you have bought 250 shares of Futures - RELIND - 31 Aug 2023 at Rs.2500 and IM is 20% and minimum margin is 10%. You would be having a margin of Rs.125000 blocked on this position. The current market price is now say Rs.2200. This means the effective available margin Rs. 50000/- which is less than the minimum margin of Rs 62500/- and hence additional margin to be called in for. Additional margin to be calculated as follows: (a) Margin available Rs.125000 (b) Less : MTM Loss (2500-2200)*250 Rs.75000 (c) Effective available margin (a-b) Rs.50000 (d) Minimum Margin 250*2500*10% Rs.125000 (e) Re-calculated margin 250*2200*20% Rs. 110000 a. Additional margin Call (e-c) Rs. 60000

How do you call for additional margin during the Intra-day MTM process?

Once the available margin falls below the minimum margin required, our system would block additional margin required out of the limits available, if any.

Can I do anything to safeguard the positions from being closed out?

Yes, you can always allocate additional margin, suo moto, on any open margin position. Since the close-out process is triggered when minimum margin required is more than available margin, having adequate margins can avoid calls for any additional margin in case the market turns unfavorably volatile with respect to your position. You can add margin to your position by clicking on "Add Margin" on the "Open Position - Futures" page by specifying the margin amount to be allocated further. However, you should keep in mind that whatever margin you add during the day will remain there only till the end of day mark to Market (EOD MTM) is run or upto the time you square off your position in that underlying and group completely. Next day if you want some more margin to be added towards the same open position, you will have to do 'Add Margin' again. Please note there is also an additional tracking tool provided to track your positions on the basis of Trigger Price and LTP. For more details you can refer below FAQs.

What is the Trigger price displayed on Open Position page for Futures product?

Trigger price is just an additional tracking tool provided to track your positions to ascertain at what price level the position may get squared off on the basis of Trigger Price and LTP. However, you can continue to track your positions for intraday mark to market process on the basis of Available Margin and Minimum Margin accordingly you can allocate additional funds if Available Margin amount is displayed in red colour. Trigger price is a price which indicates that your position is likely to come under the mark to market process and may get squared off if LTP breaches the indicated trigger price.

Will Trigger Price be calculated for NON SPAN as well as SPAN based margining?

Yes, Trigger Price will be calculated for NON SPAN as well as SPAN based margining in Futures product. For details on Trigger Price under SPAN margining you may refer SPAN based margining FAQ's.

How is the Trigger Price calculated for Futures positions ?

a. Trigger Price is calculated as follows in case of Buy positions: Example: If you have Futures Buy position of 500 qty of Reliance at Rs 900 expiring on 26th December 2015 at IM of 11% and MM of 8%. Trigger Price calculation for Future Buy Positions: WAP on Underlying level-(( Margin on Positions - ( WAP on underlying level * Open Pos Qty * Min margin percentage)/ Open Position Quantity). 900-{(49500-(900*500*8/100)))/500} = 873 b. Trigger Price is calculated as follows in case of Sell positions: Example: If you have Futures Sell position of 1600 qty of ITC Limited at Rs 355 expiring on 26th December 2015 at IM of 14% and MM of 10%. Trigger Price calculation for Futures Sell Positions: WAP on Underlying level+(( Margin on Positions - ( WAP on Underlying Level * Open Pos Qty * Min Margin Percentage ))/ Open Position Quantity). 355+{(79520-(355*1600*10/100))/1600) = 369.20 Please note Trigger Price will be rounded up to the tick size for Buy positions and rounded down to the Tick size for sell positions.

Will Trigger Price be recalculated on converting Future PLUS positions to Future?

Yes. Trigger Price will be recalculated on converting Future PLUS position to Future for NON SPAN based margining.

Whether Trigger Price would be displayed in case of perfect spread Futures positions ?

No. In case of perfect spread i.e. where the buy and sell quantity is the same in different contracts of the same underlying forming a spread , Trigger Price will not be applicable.

How is Trigger Price calculated for imperfect Spread Positions?

Imperfect spread positions means where Buy and Sell quantity is not the same in different contracts of the same underlying. Trigger price for Spread positions is calculated in three steps: Example: If you take buy position for 500 qty in Fut - RELIND- 31 Aug 2023 @ 2500 and sell position for 1500 qty in Fut - RELIND- 27 Oct 2015 @2600, 500 buy position in Fut - RELIND- 26 Nov 215 and 500 sell position in Fut - RELIND- 31 Dec 2015 forms a spread against each other and hence called spread position. In this example, the balance 1000 shares Sell position in Fut - RELIND- 26 Nov 2015 would be non-spread position and would attract initial margin. IM and MM for RELIND is 16.19 % and 13.69 % respectively and Spread IM and MM is 6% and 3% respectively. Step 1: Trigger Price for Futures Naked Buy/Sell position Trigger Price for Futures Naked Buy/Sell position: WAP on Contract level where naked position exists -/+ [(Executed Margin Blocked on naked leg - (WAP on Contract level * Contract level Naked Open Position Qty * Minimum Margin Percentage)) / Naked Position Qty] where Executed Margin Blocked on Naked qty is calculated as WAP of Contract where Naked Position Exists*Naked Position Qty*IM % = 956.40+(154841-1000*956.40*13.69%)/1000 = 980.31 Step 2: Trigger Price for Futures Spread Buy/Sell position : Trigger Price for Futures Spread Buy/Sell position : WAP on Contract level where naked position exists -/+ [(Executed Margin Blocked on spread - (WAP of Far month contract * Contract level spread Position Qty * Minimum spread margin percentage)) / Spread Position Qty] where Executed Margin Blocked on spread qty is calculated as WAP of Far Month Contract*Spread position Qty*Spread IM % = 956.40+(28692-956.40*500*3%)/500 = 985.09 Step 3: WAP of Both Trigger Price WAP of Both Trigger Price: ((Trigger Price for Naked Position*Naked Position Qty)+(Trigger Price for Spread Position*Spread Position Qty))/ Naked Position Qty+Spread Position Qty. = ((980.31*1000)+(985.09*500))/1500 = 981.90 In the above case Trigger would be displayed as 981.90 on Future Open position page. Please note Trigger Price will be rounded up to the tick size for Buy positions and rounded down to the Tick size for sell positions.

In case of profit on a future position or where the Available Margin is in excess of the Margin Required, can I reduce the margin against the position to increase my limit?

No, any release of margin in excess of required margin (in profitable position) is possible when ICICIDirect runs its EOD MTM process or you square off your open position completely.

What is meant by EOD MTM (End of Day - Mark To Market) process?

EOD MTM on daily basis is a mandatory requirement in case of futures. Every day the settlement of open futures position will take place at the closing price of the day. The base price as shown in the Open Position - Futures page is compared with the closing price and difference is cash settled. In case of profit in EOD MTM, limits are increased by the profit amount and in case of loss, limits are reduced to that extent. Next day the position would be carried forward at the previous trading day closing price at which last EOD MTM was run. Closing price for all the contracts are provided by exchange after making necessary adjustment for abnormal price fluctuations. It is different than LTP.

What would be the effect of EOD MTM on margin blocked at position level?

Yes, EOD MTM does have its impact on margin at position level. Margin is re-calculated at the closing price at which EOD MTM was run and differential margin is blocked or released as the case may be. For margin calculation, the presentsame IM% and spread margin % is taken. To provide sufficient margin on open position after EOD MTM, ensure that suffecient allocation is available under F&O segment. You must visit the allocation amount for F&O on daily basis and allocate further if present allocation is found insufficient. Yes, EOD MTM does have its impact on margin at position level. Margin is re-calculated at the closing price at which EOD MTM was run and differential margin is blocked or released as the case may be. For margin calculation, the presentsame IM% and spread margin % is taken. To provide sufficient margin on open position after EOD MTM, ensure that suffecient allocation is available under F&O segment. You must visit the allocation amount for F&O on daily basis and allocate further if present allocation is found insufficient. Due to daily MTM and payin/payout, allocation amount for F&O may come down over a period of time and because of the same, open position may fall in MTM loop and may get squared off unless you allocate fresh amount for F&O. Payin amount is debited from allocation you make for F&O but payout credit is always given in your clear balance. . What is meant by "Split of Contract"? One calender days prior to the expiry of contract, open position of that contract would be taken out of spread definition and subjected to normal IM margin %. Position in such separated contracts would be shown separately. Limits would be reduced appropriately to ensure the IM% on near month contract. If limits are falling short to provide the same, the margin available in a group from which the near month contract was moved will also be utilised to make good the short fall. After moving the near month contract from the existing group to separate group, margin for the existing group will be re-calculated and limits would be reduced appropriately. For example, you take buy position for 100 shares in Future - ACC- 27 Feb 2002 @ 150 and sell position for 100 shares in Future - ACC- 26 Mar 2002 @ 160. 100 buy position and 100 sell position would form spread. At 10% spread margin, margin blocked is Rs 1600/-. IM is 20%. Now position in Future - ACC- 27 Feb 2002 is taken out of spread. Following would be the margin requirement. Limits Rs 20000 Margin on Future - ACC- 27 Feb 2002 - Group A 100*150*20% Rs3000.00 Remaining limits (a-b) Rs. 17000 Margin on Future - ACC- 26 Mar 2002 - Group B 100*160*20% Rs 3200 Remaining limits (c)-(d - 1600) Rs 15400

What is Futures Trading at ICICIDirect.com?

As a customer of ICICIdirect now, you can trade on index and stock futures on NSE. It comes with a comprehensive tracking cum risk management solution to give you enhanced leveraging on your trading limits. In futures trading, you take buy/sell positions in index or stock(s) contracts expiring in different months. If, during the course of the contract life, the price moves in your favor (rises in case you have a buy position or falls in case you have a sell position), you make a profit. In case the price movement is adverse, you incur a loss. To take the buy/sell position on index/stock futures, you have to place certain % of order value as margin. With futures trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. However, the risk profile of your transactions goes up.

On which exchanges will I be able to buy and sell in futures market?

ICICIdirect offers its customers execution capability on the National Stock Exchange of India Ltd. (NSE).

Which stocks are eligible for futures trading? Why is the stock list restricted to specific scrips only?

At present, we have enabled selected stocks for trading in the futures segment. Only those stocks, which meet the criteria on liquidity and volume have been considered for futures trading.

Which contracts under an underlying are enabled for Future trading? Why is the contract list restricted to specific contracts only under various underlyings?

ICICIdirect enables selected contracts under various underlyings for trading in the Futures segment. Only those contracts, which meet the criteria on liquidity and volume are considered for Futures trading. This is required as there may be a risk of lower liquidity in some contracts as compared to active contracts . As a result, your order may only be partially executed, or may be executed with relatively greater price difference or may not be executed at all. Thereby to safeguard your interest such illiquid contracts are disabled for trading on www.icicidirect.com. The list of contracts is subject to modification by ICICIdirect from time to time

Where can I view futures contracts?

Only enabled contracts will be displayed for trading on the site when you select contracts either through the 'Place order' link or the Stock list page on www.icicidirect.com.

How is the futures contract defined?

ACC future contract expiring on 27th Feb, 2002 is defined as "Fut-ACC-31-Aug-2023". Wherein "Fut" stands for Futures as derivatives product, "ACC" for underlying stock and "31-Aug-2023" for expiry date.

What is an "Underlying" and how is it different than "Contract"?

An index or stock enabled for trading on futures is called an "Underlying" e.g. NIFTY (index) and ACC (stock). There may be various tradable contract for the same underlying based on its different expiration period. For example Fut - ACC - 31 Aug 2023, Fut - ACC - 28 Sep 2023 and Fut - ACC - 26 Oct 2023 are "contracts" available for trading in futures having ACC as "underlying".

How do I place a futures buy/sell order?

In the "Place Order" page, you need to select "Futures". You can search the required contract by typing the in the Stock Code/Contract box and select the required one from the drop down or click on select contract to view list of available contracts expiring in different months. Select Buy/Sell. and enter the quantity (lot size) of your choice. You need to define the order type i.e. market or limit. After all the information is filled, you can click the Place Order button.

Can I short sell the shares in futures segment (i e sell shares which I do not hold in DP)?

Yes, you can short sell the shares in futures segment. There is no block on your holdings in the demat account.

How much margin would be blocked on placing the futures order?

Since the margin differs from stock to stock, you can view the margin by either going to the Margin Calculator or by going to the Place order page. 1. Margin Calculator: Once logged in, in the F&O home page, navigate to the important links section. You can find the margin calculator here. Once opened you can select the product type, stock code, expiry date, quantity, price, action (buy/sell) and then click on add. You will now see the margin required for the particular contract. 2. Place order page: In the place order page, select the contract of choice. Select Buy/Sell. and enter the quantity (lot size) of your choice. You need to define the order type i.e. market or limit. Now you can view the margin that will be required. 3. Basket order: In the menu, select Basket orders. Now, you can click on create basket and name it. Once created, select FUTURE. Select the stock of choice by typing the name in the stock code/Contract search box, select the trade type (buy/sell), quantity and order type (Market/Limit) and click on save to basket. In the next screen you can view the margin required. You can add multiple contracts in the basket to view the total margin required for all the contracts.

Is margin blocked on all future orders?

No. Margin is blocked only on future orders, which results into increased risk exposure. For calculating the margin at order level, value of all buy orders and sell orders (in the same underlying-group) is arrived at . Margin is levied on the higher of two i.e. if buy orders value is higher than sell order value, only buy orders will be margined and vice versa. In other words, margin is levied at the maximum marginable order value in the same underlying.

How is the initial margin (IM) on open position is maintained?

The same margin % applicable for orders will be levied at position level also. Position level margin is arrived at by applying the IM% on the value of net open position. Minimum Margin is the margin amount, you should have available with us all the time. Once the available margin with us goes below the minimum required minimum margin, our system would block additional margin required from the limit available.

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 in Fut - RELIND- 28 Aug 2023 and sell position in Fut - RELIND- 25 Jan 2024. This forms a spread against each other and hence called spread position.

Can a non- spread contract be moved to spread group?

Yes,on the expiry of near month contract, far month contract would be moved to spread group. New contract now introduced will now be non-spread contract. . Is it compulsory to square off the position within the life of contract? No. You may not square off the position till the contract expires. In that case, ICICIDirect as well as Exchange would expire your position on the last day on contract after running EOD MTM and your position would be closed at the closing price of the spot (equity) market as per the current regulations. Margin blocked on such expired position will also be released and added into you trading limits after adjusting profit/loss on close out.

What kind of settlement obligation will I have in futures?

You can have following kind of settlement obligation in futures market: 1. Brokerage: Any transaction you enter into will attract brokerage. Brokerage is debited in your account at the end of the day. 2. Profit and loss on squared off position 3.Profit and loss on EOD MTM on open position

Is there any "no-delivery period" concept in futures?

There is no "no-delivery period" concept in futures. Even if stock is in no-delivery period, trading in futures will be as usual. There will not be any no-delivery period as it is in equity market.

When is the obligation amount debited or credited in my bank account?

All futures obligation is settled by exchange on T+1 basis. This means that any obligation arising out of transactions in futures or EOD MTM on day (t) is settled on an immediate next trading day. This further means that if you have a debit obligation on day (t), the payment will have to be made on day (t) itself. Whereas If you have a credit obligation, amount would be credited in your account on t+1 day. If t+1 days is holiday, credit would be given on subsequent day.

According to cash projections, payin was scheduled yesterday but amount has not been deducted from my Bank Account?

If the payin amount is not significant, ICICIDirect may decide not to run the payin as scheduled. The outstanding payin amount may be clubbed with future payin amount or internally adjusted against the futures payout. Payin and payout internally adjusted will be clearly defined in cash projection.

On t+1 day I have payout for a particular trade date and also payin for different trade date? Will payout and payin run seperately ?

No, if different payin and payout are falling on the same day, amount would be first internally adjusted against each other and only net amount would either be recoved or paid. In cash projection, distinct particulars would be given for payin/payout internally settled and settled by way of debit/credit in bank. Setting Trading Limits

I have allocated funds for secondary market- Equity Can I make use of those limits for F&O market also?

Allocation has to be done separately for equity and F&O market. If you have allocated some funds for secondary market- equity, you will get the corresponding trading limits also for secondary market - equity. For trading limits in F&O, you will have to do separate allocation through "Allocate Funds" page.

When do orders in Futures get freezed?

Orders in Futures may get freezed at the exchange end. There are two types of Freeze orders specified by exchange: 1. Price Freeze - In case of Stock Futures orders are freezed by exchange, if the price range specified is beyond ± 20% of base price i.e. previous days closing price. In case of Index Futures or Basket Futures orders are freezed by exchange, if the price range specified is beyond ± 10% of base price i.e. previous days closing price. However, the above price ranges may be changed depending upon the market volatility. 2. Quantity Freeze - In case of Stock Futures the quantity for each stock is specified by exchange from time to time and single order value should not normally be beyond Rs. 4 Crores. In case of Index Futures the quantity should not be beyond 15000. For further details on the respective quantities for each stock please refer NSE site http://nseindia.com/content/fo/qtyfreeze.xls

What other resources will the site offer me to help in taking smarter decisions for online futures trading?

Our site offers you a comprehensive set of resources like Flash trade, research driven ideas via One Click F&O. If you avail the Prime plan you can trade in Options Rs. 7 per lot

What is peak margin?

Your highest margin utilization on the Trade Date or highest Limit utilization on order placement level & status change (such as cancellation) is considered as Peak Margin required for the day.

What is EOD margin?

After the market closes, clients need to maintain EOD or End of the Day margin (SPAN + Exposure) for open positions. This is then tallied with the latest exchange margin requirement which gets updated even after the market closes. Any shortfall here can also lead to clients being charged EOD margin shortfall. SPAN® determines margins using a scenario-based methodology. We know that the value of futures and options holdings is influenced by a variety of factors, including the security's price and volatility in the cash market. We also know by now that volatility and price both fluctuate. By assuming various values for the price and volatility, SPAN® generates approximately 16 alternative scenarios. The portfolio's potential loss is assessed for each of these situations. Exposure margin is also obtained in addition to initial / SPAN® margin. Index futures and index option sell positions are subject to exposure margins of 3% of the notional amount. For sell positions in individual security options and futures, the exposure margin is the greater of 5% or 1.5 standard deviations of the security's logarithmic returns (in the underlying cash market) for the previous six months, and it is applied to the notional value of the position.

Options Trading

What are options?

Options are derivative contracts between two parties where the buyer has the right but no obligation to buy or sell the underlying asset at a specific price on a specified day in the future. The seller, however, has an obligation to execute the contract should the buyer choose to exercise their right.

What is Options Trading at ICICIDirect. com?

As a customer of ICICIdirect now, you can trade on index and stock options on NSE. It comes with a comprehensive tracking cum risk management solution to give you enhanced leveraging on your trading limits. In options trading, you take buy/sell positions in index or stock(s) contracts expiring in different months with various Strike Price. If, during the course of the contract life, the price moves in your favor, you make a profit. In case the price movement is adverse, you incur a loss. To take the buy/sell position on index/stock options, you have to place certain % of order value as margin. With options trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. However, the risk profile of your transactions goes up.

What is a Call?

Call is the Right but not the obligation to purchase the underlying Asset at the specified strike price by paying a premium. The Buyer of a Call has the Right but not the Obligation to Purchase the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Call has the obligation of selling the Underlying Asset at the specified Strike price.

What is a Put?

Put is the Right but not the obligation to sell the underlying Asset at the specified strike price by paying a premium. The Buyer of a Put has the Right but not the Obligation to Sell the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Put has the obligation of Buying the Underlying Asset at the specified Strike price.

What is a strike Price?

It is the Price at which the underlying Asset is Agreed to be Bought or sold.

What is a premium?

Premium is the downpayment the Buyer of Call or Put is required to make for entering the options agreement.

What is a European option?

These options give the holder the right, but not the obligation, to buy or sell the underlying instrument only on the expiry date. This means that the option cannot be exercised early. Settlement is based on a particular strike price at expiration. Currently, in India index and stock options are European in nature.

On which exchanges will I be able to buy and sell in Options market?

To begin with, ICICIDirect offers its customers execution capability on the National Stock Exchange of India Ltd. (NSE).

How is Options trading different from Futures trading?

In case of Futures the Buyer has an unlimited loss or profit potential whereas the buyer of an option has an unlimited profit and Limited downside. The Seller of a Futures has an Unlimited loss or profit potential but the seller of an option has a Limited profit but Unlimited Downside.

How is Options Contract Defined?

An European Put ACC Options expiring on 30 May 2002 with a strike price of 150 is described as OPT-ACC-30-May-2002-150-PE. OPT denotes Option, ACC is the underlying, 30 may 2002 is the expiry date of the contract, 150 is the strike price and PE denotes it is an European Put option. C would denote Call and E would denote European and CE would denote it is an European Call Option. Currently, in India index and stock options are European in nature.

Which contracts under an underlying are enabled for Options trading? Why is the contract list restricted to specific contracts only under various underlyings?

ICICIdirect enables selected contracts under various underlyings for trading in the Options segment. Only those contracts, which meet the criteria on liquidity and volume are considered for Options trading. This is required as there may be a risk of lower liquidity in some contracts as compared to active contracts . As a result, your order may only be partially executed, or may be executed with relatively greater price difference or may not be executed at all. Thereby to safeguard your interest such illiquid contracts are disabled for trading on www.icicidirect.com. The list of contracts is subject to modification by ICICIdirect from time to time.

Can I modify my square off order placed in disabled contracts or Banned underlyings?

Yes. You may visit the online order book to modify details of your pending square off order under a disabled contract or banned underlying. Please note you will be able to modify the quantity downwards and upwards only upto the net open position considering the square off orders already placed for such position. Example 1) You have a position of 16000 quantity in IFCI which is under banned period and you have two pending square off orders of 8000 each. In this case you will be able to modify all the eligible details for the square off order placed provided quantity for the modified square off order does not exceed 16000 including already placed square off orders against this position. This would mean that quantity cannot be modified upward for either of the pending square off order until the other pending square off order is cancelled. 2) You have a position of 16000 quantity in IFCI which is under banned period and you have one pending square off order of 8000 quantity. You can modify all eligible details of this pending square off order and the quantity can be modified upwards only upto 16000 i.e. to the extent of net position quantity.

Where can I view Options contracts?

Only enabled contracts will be displayed for trading on the site when you select contracts either through the 'Place order' link or the Stock list page on www.icicidirect.com.

Would Different Margin percentage be applicable to Different underlying Stocks?

Yes, ICICIdirect.com would levy different margin percentages depending on the Stock and market volatility on different stocks as it feels is necessary for Risk mitigation. Thus all ACC stock options would be marginable say at 30%, whereas all BHEL options would be marginable say at 25%. Please note - Exchange has identified option contracts in either Deep Out of The Money (OTM) or Non Deep OTM for which Exchange has stipulated separate Exposure percentage (also known as Extreme loss margin percentage). Hence accordingly for Deep OTM or Non Deep OTM option contracts Initial Margin percentage and Minimum Margin percentage would be revised accordingly.

Can margin be changed during the life of contract?

Yes, margin % can be changed during the life of the contract depending on the volatility in the market. It may so happen that you have taken your position and 25% margin is taken for the same. But later on due to the increased volatility in the prices, the margin % is increased to 30%. In that scenario, you will have to allocate additional funds to continue with open position. Please note - Exchange has identified option contracts in either Deep Out of The Money (OTM) or Non Deep OTM for which Exchange has stipulated separate Exposure percentage (also known as Extreme loss margin percentage). Hence accordingly for Deep OTM or Non Deep OTM option contracts Initial Margin percentage and Minimum Margin percentage would be revised accordingly.

How is margin (premium) calculated on Buy orders in Option?

Buy orders irrespective of whether it is a Call or a Put, is margined only to the extent of the Premium payable on the order.For e.g. If you place a Buy order in OPT-ACC-30-May-2002-150-PE for 1500 quantity at a Limit price of 20 would attract margin of Quantity * Price at Rs 30,000/-.

How is margin (premium) calculated on Buy Market orders in Option Contracts?

Buy orders irrespective of whether it is a Call or a Put, is margined only to the extent of the Premium payable on the order. In case of market order, I-Sec system blocks margin on the basis of Best five BID and ASK order prices available in the exchange. However the BID and ASK prices are subject to change anytime and hence there can be difference in the price prevailing in the exchange at the time of order placement and the price at which order gets executed. For e.g. If you place a Buy Market order in OPT-ACC-30-May-2002-150-PE for 1500 quantity and likely execution rate based on ASK prices available in market at that point of time is Rs 20, then margin will be blocked at order placement would be Rs 30000 (1500 * Rs. 20). However, since ASK and BID prices are subject to change anytime, hence the execution of the order may happen at different price (say Rs. 22). Post execution, system would re-block differential margin based on actual execution price. If the differential margin based on actual execution price is not available in the limit allocation, then limit will become negative to that extent. In above example margin would be Rs 33,000 (1500*Rs 22). If sufficient free limit is not available in limit allocation then F&O limit will be negative to the tune of Rs. 3000.

What is the Basis of MTM in case of Sell Put and what happens in the MTM process?

As soon as you place a Sell Put order, which results in a position, a Trigger price is calculated (as per the formula given below) which is displayed in the Open positions book. Whenever the Underlying price of the shares goes below the Trigger price in case of Sell Put, the Contract would be in the MTM loop. First the Additional margin recalculated as per the new scenario due to price fall is blocked; if Additional margin is found to be insufficient then the orders in the same contract are cancelled. If both these measures fail, then the position is squared off by the ICICIdirect.com. Trigger Price for Sell Put position = (Strike Price - Margin Amount) - (1 - Minimum Margin %) For Example: You have a sell position in OPT-ACC-30-May-2002-150-PE Current Market price of ACC is 160. Initial margin on ACC is 30%. Minimum Margin on ACC is 10%. Initial Margin = (160*30% - (160-150)) = Rs 38 Minimum Margin on ACC is 10%. Trigger Price for Sell Put Position = (150 - 38) / (1- 10%) = 124.44 Please note - Exchange has identified option contracts in either Deep Out of The Money (OTM) or Non Deep OTM for which Exchange has stipulated separate Exposure percentage (also known as Extreme loss margin percentage). Hence accordingly for Deep OTM or Non Deep OTM option contracts Initial Margin percentage and Minimum Margin percentage would be revised accordingly.

If limits are found to be insufficient is the whole position sent for square off in both cases of sell call and sell put?

No, Square off is done in both cases in lot size of the contract. On acceptance of the square off placed, the new trigger price is calculated and whole process as explained above for sell call and sell put is repeated. This goes on till either sufficient margin is available or the complete position is squared off whichever is earlier.

What happens if I do not square off the transaction till the last day?

All "Out of the Money" positions which are not exercised or assigned will be marked as closed off and the position will not appear in the open positions page. The closed off entry will appear on the Portfolio Details page as Close out .

How is brokerage calculated in case of options?

Brokerage in options is calculated on per lot/contract basis. Please refer Fee schedule on Customer Service page for more details

Is there a Daily EOD MTM just like Futures?

No, there is no daily EOD MTM in case of options like in case of futures.

Is MTM done in case of options?

Yes, but it is applicable only in case of Short Positions i.e. Sell Call and Sell Put.

What kind of settlement obligation will I have in Options?

1. Brokerage: Any Transaction you enter into will attract brokerage. Brokerage is debited to your account at the end of the day. 2. Premium payable or Receivable 3. Profit on Exercise 4. Loss on assignment

When will the obligation amount be debited or credited in my Bank Account?

Assuming you place a transaction on day T, Options obligation will be settled as per the following table Condition- Obligation settlement Option Premium Receivable T+1 Option Premium Payable T Exercise Profit in case of Stock / Index T+1 Assignment Loss in case of Stock / Index T Brokerage T

What happens if I have a margin / premium obligation towards the Exchange and have open position under Options Buy Call and/or Put?

In case client does not have sufficient free limit available in such cases system may even square off Options Buy positions to recover the required margin / premium obligation amount towards Exchange.

Where can I see my settlement obligation?

You can see your obligation on cash projection page. The date on which the amount is to be deducted or deposited in your account can be checked from the "Cash projection" page. You can even see the historical obligation (already settled) by giving the respective transaction date.

Can an underlying be disabled from trading during the day?

Yes, In case the market wide open position for an underlying reaches a particular percentage specified by NSE, the trading in that particular underlying is disabled by NSE. Accordingly ISEC would also disable the trading in that particular underlying during market hours.

Can I square off the open positions in the disabled underlying?

Yes, you can square off the open positions in the disabled underlying through square off link available on open position page.

What is meant by a freeze order? What should I do in case an order is Freezed?

Orders in Options may get freezed at the exchange end. There is only quantity freeze (no price freeze) in case of options. In case of Stock Options single order value should not be beyond Rs. 5 Crores and the quantity for each stock is specified by exchange from time to time. In case of Index Options the quantity should not be beyond 15000. For further details on the respective quantities for each stock please refer NSE site http://nseindia.com/content/fo/qtyfreeze.xls

Is there any hedging benefit between options?

No. Currently ICICIdirect is not offering any hedging/spread benefit within Options. Thereby customers are advised to monitor all the options positions as independent positions and allocate margin for all individual open Option positions (if additional margin is required).

Why I am unable to place market order's in options contract?

The contract might be disabled for market order's as it failed to meet internal liquidity criteria as decided by considering exchange circular on Pre-trade risk controls for Options segment. However, you can place limit order.

Will I be able to place square off order's for my position in illiquid contracts?

Yes, you will be able to place limit square off order's for your position in illiquid contracts, but not at Market. Market orders will be allowed once internal liquidity criteria is satisfied. However, system orders will continue to get placed at market price as per existing practice.

What are the criteria for defining illiquid contracts? How will I come to know whether a contract is illiquid?

The criteria are defined internally by ICICI Securities Risk Management Team on the basis of liquidity in a contract. If you place a market order in illiquid contracts, you will get a business message as "This contract is disabled for Market orders, request you to place limit order." For example, If the minimum criteria for Nifty Options is set as - 10 lots(Volume) traded for the day (Previous day's volume is considered while market opening). Nifty has below contracts active: Nifty-25-NOV-21-18000-CE with Volume - 12 lots traded Nifty-25-NOV-21-18000-PE with Volume - 8 lots traded Then market order will be enabled for Nifty-25NOV21-18000-CE however market order will be disabled for Nifty-25NOV21-18000-PE. Above example is for understanding purpose and does not represent actual criteria set by ICICI Securities.

Will I be able to place market orders in a contract once it becomes liquid?

Yes, you will be able to place market orders in a contract once it meets the internal liquidity criteria.

What happens in case my F&O Limit goes negative due to placing Option Buy order at Market price or for any other reason?

I-Sec system has internal process to handle negative limit of clients. In any case if client limit has gone negative in F&O segment, then system will first cancel the pending fresh orders if any and will appropriate the margin released from that cancellation towards the negative limit, if limit still remain negative, then, system will proportionately withdraw margin from other marginable open position in F&O segment, if any, and that F&O position may get square off in system MTM process. Margin release in this process will get appropriate towards negative limit. If limit still remains negative, then system will square off required quantity of Option Buy position, if any, as recovery towards negative limit. Such process will be triggered at periodic time interval during market hours.

How is Margin calculated on Sell orders in option?

Since the seller of the option is exposed to a higher risk than the buyer of an option, the margin calculation is slightly different as compared to Buy orders. ICICI direct would specify a Margin percentage as it feels is commensurate with the volatility and the current position of the Stock or the Index. This percentage would be applied to the Current Market Price (CMP) of the shares/Index in the Underlying Market.

Would In-the-Money or Out-of-Money be considered for Margin calculation in case of Sell Orders?

Yes, In-the-Money or Out-of-Money would be considered while calculating the Margin on Sell orders. In case of In the Money, the seller of the option would be required to bring in additional amount equal to the difference between CMP and the Strike price in case of Call and difference between Strike price and the CMP in case of Put. In case of Out of money, the seller of the Option is given the benefit and would be required to bring in lesser amount equal to difference between Strike price and the CMP in case of Call and difference between CMP and the Strike price in case of Put. The Margin so arrived is compared with a Minimum Margin (SOMC margin) i.e the Short option margin Percentage, the higher of the two percentages is taken into account.

Would the Premium to be received be considered for Marginable sell orders?

No, Premium benefit will not be given at the time of placing Marginable sell orders. Once the order is executed the benefit of the Premium is withdrawn since the Premium is now a crystallized entry for which you would get the Payout on the Indicated payout date. Now the entire margin amount is blocked from the limits. The following Illustration shows how margin is calculated on sell orders (Applicable to both Call and Put orders) You place a sell order in OPT-ACC-30-May-2002-150-CE, for 3000 quantity at a limit price of 20/- Current Market price of ACC is 140. Initial margin on ACC is 30%. The Buyer Out of the Money in this case and the seller gets benefit of this. (a) Margin 3000 * (140*30% - (150-140)) = Rs 96000 Margin on Order would be =Rs 96000 Please note - Exchange has identified option contracts in either Deep Out of The Money (OTM) or Non Deep OTM for which Exchange has stipulated separate Exposure percentage (also known as Extreme loss margin percentage). Hence accordingly for Deep OTM or Non Deep OTM option contracts Initial Margin percentage and Minimum Margin percentage would be revised accordingly.

Is the separate Margin Blocked for Buy and sell Orders?

No, margin is blocked on the order, which attracts higher Margin out of the Buy or Sell order. If you have placed both a buy and sell order in the same contract Margin blocked would be the maximum of the two orders. Illustration As in the above illustration the sell order attracts a margin of (a) Rs 96000/-. If you place a Buy order in the same Contract OPT-ACC-30-May-2002-150-CE 3000 at Rs 20/- it would attract margin of (b) Rs 60,000/-. Margin blocked would be the higher of the two margins (a) or (b) i.e. Rs 96,000/-. Please note - Exchange has identified option contracts in either Deep Out of The Money (OTM) or Non Deep OTM for which Exchange has stipulated separate Exposure percentage (also known as Extreme loss margin percentage). Hence accordingly for Deep OTM or Non Deep OTM option contracts Initial Margin percentage and Minimum Margin percentage would be revised accordingly.

Is margin blocked on all Options Orders?

No. Margin is blocked only on orders, which result in an Increased Risk exposure. Margin is not recovered from an order, which is cover in nature. However in case of buy cover order where the premium exceeds the margin blocked, extra margin is required for placing the order. If a Position of opposite nature is present then the Order is reduced by the opposite position, if the opposite position is greater than the order, then the order is not margined at all. For e.g. a) if you have a Buy position of 4500 in OPT-STABAN-25-Jul-2002-210-CE, and you place a sell order of 3000 then the sell order becomes non-marginable. b) If you have a sell position in OPT-NIFTY-27-May-2004-1700-CE, and the margin blocked is Rs.45,500.00 and a cover buy order is placed which requires total premium of Rs.65000.00, then extra margin to the extent of Rs. 14500.00 (65000-45500) is required. Please note - Exchange has identified option contracts in either Deep Out of The Money (OTM) or Non Deep OTM for which Exchange has stipulated separate Exposure percentage (also known as Extreme loss margin percentage). Hence accordingly for Deep OTM or Non Deep OTM option contracts Initial Margin percentage and Minimum Margin percentage would be revised accordingly.

What happens if buy or sell orders are placed when there is some open position also in the same contract?

In both cases buy and Sell, the Marginable Buy order or Marginable Sell order is arrived at the Contract level. Marginable Buy order is calculated by deducting Net Sell Position from the Total Buy orders Marginable Sell order is calculated by Deducting Net Buy Position from the Total Sell orders Margin is recovered only on the Marginable Buy/Sell order Quantity.

How do I place a square off order to cover my open positions?

You can place the square off order either through the normal buy/sell page or through a hyper link "Square off" on the "Open Position" page. It is advisable to place cover order from open positions page through the square off link since the quantity available is auto-populated and you are aware of the quantity for which you are placing the square off.

How does the profit and loss recognized on execution of square up (cover) orders?

In case of Options the cover order Buy or sell though Reduces the Open position or closes out Open position accordingly, the both the orders are treated separately.

Can I Exercise My Buy (Call/Put) Option?

No you cannot exercise your Buy options since currently in India all Index and Stock options are European in nature. In case of European Options the contracts can be exercised only on the last day of the contract expiry. All In the Money European contracts will be automatically exercised by the exchange on the last day of contract expiry, hence there will be no additional option for exercising on www.icicidirect.com. In case of an American option you can place an exercise request upto the Open (Call/Put) buy position anytime except on the Last date of the contract expiry.

Is there a specific time when I can place my exercise request?

Currently, in India all Index and Stock options are European in nature thereby you don't have the option to place exercise but they will be auto exercised on the expiry date if they are In-the-Money.

What is the Effect of Exercise?

The profit on exercise is reflected in the Cash Projections and is added to the Limits. The realized profit on the contract is also reflected in the Portfolio page.

How is Profit calculated on Exercise?

In case of Exercise the profit is calculated as the difference between the Exercise Settlement price of the Underlying shares in the cash market and the Strike price of the contract. This is then multiplied by the exercised quantity and reduced by the applicable brokerage charges, statutory levies and taxes.

Is exercise quantity considered for Margin calculation?

Yes, the exercised quantity is reduced from the open positions in the Marginable sell order quantity calculation. Hence the sell order placement would be marginable if the quantity of sell order exceeds the difference between the executed Buy position and the exercise request quantity i.e. Sell order Qty is greater than (Buy Position Qty - Exercised Qty).

Is part exercise possible by the exchange?

No, only full quantity will be exercised by exchange.

What is assignment?

In case you have a Sell position, you may be assigned the contract i.e. you will have to Buy the Underlying in case of Put and sell the Underlying in case of Call. However since options are currently cash settled you would have to pay or receive the Money.

How do I know I have been assigned?

The Assignment book will reflect the assigned quantity in the contract; the Limits page will also accordingly reflect the Payin dates on which the assignment obligation is payable.

Do I have any control over Assignment?

No, You have no control over Assignment since it is initiated by the exchange. The Assignment process is completely decided by the exchange.

Option Plus

What is Options Plus?

Options Plus is an intraday product having an order placement feature wherein you place two orders simultaneously wherein Fresh order will be a market/Limit order and with the second order you limit your loss on every position by necessarily placing a cover order specifying the Stop Loss Trigger Price (SLTP) and a Limit Price. Options Plus is available in current week expiries for index and current month expiries for stocks.

Can I place Cover Stop Loss order after the Fresh position is taken?

No. You will need to compulsorily place Cover Stop Loss order along with your Fresh order. In this product you will not be allowed to place the Cover Stop Loss order after placing the fresh order.

In which Exchanges shall I be able to place orders in Options Plus?

Presently, Options Plus facility is available only in NSE.

Can I place Options Plus orders in all underlyings?

Only select underlyings have been enabled for trading under the OptionsPLUS product which meet the internal criteria on liquidity and volumes.

Can I place Options Plus orders in all contracts?

Only select contracts under selected underlyings have been enabled for trading under the Options Plus product. Only those contracts, which meet the criteria on liquidity and volume, have been enabled for trading under this product. I-Sec reserves the right to select the contracts for Options Plus product and may, at its sole discretion, include or exclude any contract for trading in this product without any prior intimation.

From where do I place Options Plus orders?

You can place orders in Options Plus product by visiting the existing 'Place Order' link with product type as 'Options Plus' under the F&O trading section.

What are the details for a cover SLTP order?

The details for a cover SLTP order are as follows: 1. Exchange 2. Contract Details 3. Action (Buy/Sell) 4. Quantity 5. Order Type - Limit 6. Stop Loss Trigger Price 7. Limit Price The first 5 values would be automatically picked up from the Fresh order details. The Stop Loss Trigger Price value is required to be entered by you which would be the trigger price and the order gets activated once the market price of the relevant security reaches or crosses this threshold price. The value for limit price would automatically appear in the Limit Price field based on the margin requirement for the stock between the Limit Price compared to the Stop Loss Trigger Price (SLTP). Please visit the Stock list page of Options Plus product to see details on the margin requirement for your respective transaction.

Can I cancel the Fresh and cover SLTP order?

Yes. You can cancel both the orders simultaneously provided they both remain unexecuted. If any of the two orders gets execution then you shall not be allowed to cancel any of them.

Can I cancel only Fresh order?

No, only fresh order cannot be cancelled. However, only in cases where your cover order gets cancelled/rejected then you shall be given a link/tool to Cancel your fresh order from Order Book.

What is Reorder functionality in Options Plus?

Reorder functionality will help you in quickly recreating similar Options Plus orders using the details of the previously placed orders. Please note, default quantity displayed at the time of placing reorder against your Options Plus orders/open position will be the quantity entered at the time of original order placement. However, if you wish to change the quantity or use Quantity Calculator feature then you may please edit your order before placing.

What will be the price at which margin for an order will be calculated?

For fresh market orders, the price would be calculated based on the weighted average price of the best 5 bids and offers available for calculating the margin requirement.

What is the margin required on placement of Options Plus order?

Margin required for placement of Options Plus order is as follows: I) Fresh Buy: Margin in case of Options Plus fresh Buy order will be higher of two margins stated below or Option Premium: Maximum possible loss that you may incur considering difference between Fresh order price and cover order price plus an additional margin calculated at the Flat rate value specified, if any, for the underlying Margin computed as per Buy Multiplier% specified for the underlying under this product Formula: Fresh Buy Market order: Min (Max [{((Weighted average price of fresh order - limit price of cover SLTP order) * Quantity) + (Option PLUS flat rate Value * Quantity)}, {Buy Multiplier% * Premium value}], Premium value) Fresh Buy Limit Order: Min (Max [{((Limit price of fresh order - Limit price of cover SLTP order) * Quantity) + (Option PLUS flat rate Value * Quantity)}, {Buy Multiplier% * Premium value}], Premium Value) II) Fresh Sell: Margin in case of Options Plus fresh Sell will be higher of two margins stated below: Maximum possible loss that you may incur considering difference between Fresh order price and cover order price plus an additional margin calculated at the Flat rate value specified, if any, for the underlying Margin computed as per Sell Multiplier% specified for the underlying under this product Formula: Fresh Sell Market Order: Max [{((Limit price of cover SLTP order - Weighted average price of fresh order) * Quantity) + (Option PLUS flat rate Value * Quantity)}, {Sell Multiplier% * (ISec required margin basis exchange margin)}] Fresh Sell Limit Order: Max [{((Limit price of cover SLTP order - Limit price of fresh order) * Quantity) + (Option PLUS flat rate Value * Quantity), {Sell Multiplier% * (ISec required margin basis exchange margin)}] Margin is blocked as per the above formula on order placement and adjusted further based on the actual execution price. Example 1 - Fresh Buy Market Order: Assume you take a buy position for the fresh market order of 1000 quantity at current market price of 100/-. Simultaneously you also place the Sell (cover SLTP order) of 1000 quantity as Limit price 90/- and SLTP 95/-. Options Plus flat rate value is 100 and Buy Multiplier % is 25% Min (Max [{(100-90) *1000} + {100*1000}, {25%* 100000}], (100000) =Min (Max [{110000}, {25000}], (100000) =Min (110000, 100000) =Rs. 100000 Example 2- Fresh Buy Limit Order: In the above example if you place a fresh buy limit order at 99, Options Plus flat rate 100 and Buy Multiplier % is 25% the margin amount would be blocked as Min (Max [{(99-90) *1000} + {100*1000}, {25%* 99000}], (99000) =Min (Max [{109000}, {24750}], (99000) =Min (109000, 99000) =Rs. 99000 Example 3- Fresh Sell Limit Order: Assume you take a sell position in Nifty bank, lot size is 25 (spot rate 25803) for the fresh market order of 1000 quantity at current market price of 100/-. Simultaneously you also place the buy (cover SLTP order) of 1000 quantity as Limit price 105/- and SLTP 102/-. Options Plus flat rate value is 100, Sell Multiplier is 25% Span & exposure margin value as required by Isec basis exchange margin would be required for computation of margin basis Sell Multiplier% as per formula mentioned above. In this example SPAN per lot is considered as 116516 and exposure margin is considered as 1032120. Please note, these values may vary for different underlying contracts as required by Isec basis exchange margin. =Max[{(105-100)*1000+{100*1000},{(25%*((116516*1000)/25)+1032120)} =Max(147200,1423190) = Rs. 1423190

Is premium cut off price applicable for both Fresh Buy and Sell orders?

No. Premium cut off price is applicable only in case of Fresh Sell order. However, as mentioned above, Fresh Buy orders will not be allowed with SLTP prices falling under range defined as NA.

What happens to the pending fresh Sell and cover buy SLTP orders in case LTP of a contract moves below cut off premium price?

In case of Options Plus Product, customer can only cancel the pending orders which remain unexecuted in a contract whose LTP moves below cut off premium price during the day. These orders cannot be modified. However, if the customer does not cancel the pending orders then I-Sec will cancel the orders provided not already executed on best effort basis as mentioned in FAQs.

How can I modify Limit Price of the cover order?

As mentioned above, Limit Price would automatically appear in the Limit Price field based on the difference prescribed by I-Sec and SLTP set by you at the time of order placement. After order placement, you can modify the Limit Price of unexecuted cover order by visiting the Order Book page by clicking on Modify link against your cover SLTP order.

Where can I see the Minimum SLTP - Limit price difference % or absolute value for a particular underlying?

You can view the Minimum SLTP - Limit price difference % or the absolute value between SLTP and Limit price of your cover order for various underlying by visiting Options Plus product in the Stock List link under the F&O trading section of www.icicidirect.com

How does the concept of Options Plus work?

In case of Fresh Buy: a) Current market Price rises - Position is making a profit You can choose to modify the sell cover SLTP order to a market order to immediately book profits at market price. b) Current market price falls - Position is making a loss: Once the current market price starts falling and reaches Sell cover SLTP price, the cover SLTP order would be triggered to a limit order. The cover SLTP order would get executed at the best prices available up to the SLTP limit price. In case of Fresh Sell: a) Current market price rises - Position is making a loss: Once the current market price starts rising and reaches buy cover SLTP price, the cover SLTP order would be triggered to a limit order. The cover SLTP order would get executed at the best prices available up to the SLTP limit price. b) Current market price falls - Position is making a profit: You can choose to modify the buy cover SLTP order to a market order to immediately book profits at market price.

Will there be any Mark to Market process?

No. Since the feature of cover SLTP order is available which also indicates the maximum downside involved in a particular position, there is no need of mark to market process.

Do I have the option of Add Margin?

No. The option of Add Margin is not available, since it is not relevant due to absence of Mark to Market process in Options Plus product.

Where do I view my open positions?

You can view your positions on the Options Plus positions page of your www.icicidirect.com account. Alternatively you may also visit existing Open positions page by selecting Options Plus as product type to view open positions.

Can I-Sec disable a scrip from trading in Options Plus during the day?

Yes, I-Sec can disable a scrip from trading in Options Plus product during the day.

Can I-Sec disable a scrip from placing fresh Limit order in Options Plus product during the day?

Yes, I-Sec can disable a scrip from placing fresh Limit order in Options Plus product during the day and may only allow market orders in such scrip. You can see the scrips allowed for fresh limit order placement on the stock list page.

What happens to the pending fresh and cover SLTP orders in disabled contracts of an underlying?

In case of Options Plus Product, customer can only cancel the pending orders which remain unexecuted in a contract which is disabled during the day. These orders cannot be modified. However if the customer does not cancel the pending orders then I-Sec will cancel the orders on best effort basis as mentioned above in FAQs.

Can I convert Options Plus position under a contract to Options position or vice versa ?

No. Presently, you cannot convert Options Plus position under a contract to Options position or vice versa.

What would be the brokerage payable on these trades?

The Brokerage for Options Plus orders would be the existing brokerages charged currently for Options orders based on the brokerage plan opted by you. You can refer the latest brokerage schedule on our website www.icicidirect.com on the path Customer service page > Important Information > Brokerage or the specific brokerage plan opted by you.

What is Reference Price and Exchange Trade Price execution Range?

In order to promote orderly trading, National Stock Exchange of India Ltd (NSE) has prescribed reference price and execution range for futures and options (F&O) contracts. Orders shall be matched and trades shall take place only if the trade price is within the trade execution range based on reference price of the contract. The reference price for each contract shall be the theoretical price based on the underlying price at market open, and during trade, it would be the simple average of trade prices of that contract in the last three minutes. For contracts that have traded in the last three minutes, the reference price shall be revised throughout the day on a rolling basis at one minute intervals. For other contracts, the reference price shall be the theoretical price based on the latest available underlying price and shall be revised throughout the day at regular intervals. The execution range for future contracts would be 5% around the reference price. For option contracts, between Rs.0.05 to Rs 25 reference prices, it would be a minimum absolute range of Rs.7.50 around the reference price. For option contracts above Rs.25 reference price, it would be 30% of such reference price with minimum absolute range of Rs.10 around the reference price. The execution range will not apply to India Vix Futures and long-term option contracts on Nifty. If any order which is within the operating range but which may result in a trade outside the execution range is entered then such an order (full or partial as the case may be) shall be cancelled by the Exchange

Will my Options Plus order be impacted due to Reference Price and Exchange Trade Price execution Range?

Yes, since in Options Plus you place two orders simultaneously wherein Fresh order will be Options market order with the second leg Options SLTP order. Any of the above two orders can get canceled from National Stock Exchange of India Ltd (NSE) if they try to match an opposite order whose price is not within the Trade Price execution Range.

If the Fresh/Cover SLTP order gets canceled by National Stock Exchange of India Ltd (NSE), will I be able to re-enter the Fresh/Cover SLTP Order?

No. In case your Fresh/Cover SLTP order gets canceled by National Stock Exchange of India Ltd (NSE) due to Trade Price execution Range, you will not be allowed to re-enter either Fresh/Cover SLTP Order. In such cases I-Sec on best effort basis would first cancel pending fresh/cover orders and then initiate the Square off process for the pending Open position. For Example: Assume you take a buy position for the fresh order of 1000 quantity at current market price of 100/-. Simultaneously you also place the Sell (cover SLTP order) of 1000 quantity as Limit price 90/- and SLTP 95/-. At the time of Execution of cover order, the execution price say for example 91/- is outside the Trade price Execution Range (92-98). Such order will be canceled by Exchange and you will be exposed to higher risk since there will be no order to cover your Open position. In such case I-Sec on best effort basis would try squaring off your net Open buy position at current market price. Assume you try taking a buy position for the fresh order of 1000 quantity at current market price of 100/-. Simultaneously you also place the Sell (cover SLTP order) of 1000 quantity as Limit price 90/- and SLTP 95/-. If the fresh order of SLTP product is a market order, execution price of market order depends on the available ask - bid prices and quantity at that point of time in exchange. Hence, in this case, if the execution of market order is going beyond exchange specified trade range, then the fresh order (fully or partially) could be canceled by exchange and you will be exposed to higher risk since reverse position can be created if cover SLTP order gets matched and traded within the Trade price Execution Range. In such case I-Sec on best effort basis would try canceling your pending cover SLTP order or if cover SLTP order is traded then try squaring off your net Open Sell position at current market price.

Can I "Square Off at Market" or "Modify" my cover SLTP order once it gets canceled by National Stock Exchange of India Ltd (NSE) ?

No. Once your Fresh/Cover SLTP order gets canceled by National Stock Exchange of India Ltd (NSE) due to Trade Price Execution Range, you will not be allowed to "Square Off at Market" or "Modify" your cover SLTP order.

Would the margin be recalculated when the order gets executed?

Yes, at the time of order placement the Limit Price or weighted average price upto the best five bids or offers as applicable at that point of time is considered. It may happen that execution happens at a different price than the one at which limits have been blocked. Thereby, margin is recalculated taking into consideration the actual execution price of the order.

Would the margin be recalculated at the time of modification?

Yes, it is recalculated and excess amount if any will be released or additional margin needed will be blocked if you change the limit price of your fresh order or cover SLTP order. A) In the above example of fresh buy Limit order where Buy Multiplier% is 25%%, if you modify limit price to 98,modify the SLTP to 96/- and limit price to 92/-. The margin amount to be recalculated as: Min (Max [{(98-92) *1000} + {100*1000}, {25%* 98000}], (98000) =Min (Max [{106000}, {24500}], (98000) =Min (106000, 98000) =Rs. 98000 The excess amount of 1000/- would be released and added in your limit. B) In the above example where Buy Multiplier % is 25%, if you modify the limit price as 101 and limit price of your cover SLTP order to 94/- margin amount would be recalculated as Min (Max [{(101-94) *1000} + {100*1000}, {25%* 101000}], (101000) =Min (Max [{107000}, {25250}], (101000) =Min (107000, 101000) =Rs. 101000 Additional amount of 3000/- would be blocked. If limits are insufficient then you will be unable to modify the order.

Is the 'Minimum SLTP - Limit price difference %' different for different underlying?

Yes, I-Sec may define different Minimum SLTP - Limit price difference % for different underlying depending upon the volatility and market conditions of the stock. I-Sec may define 'Minimum SLTP - Limit price difference %' for different SLTP range at underlying level depending upon the volatility and market conditions of the stock. However, it is possible to have different 'Minimum SLTP - Limit price difference %' for different ranges of SLTP for same contracts even within the same underlying. This would mean that different orders placed even within the same contract but with different SLTP may have different 'Minimum SLTP - Limit price difference' applied depending on the price range in which the Client specified SLTP falls. Assume you want to take Put long (buy) position for 1000 quantity in NIFTY underlying at Rs. 100/- with strike price of Rs 6000/-. Simultaneously you also want to place the Sell (cover SLTP order) of 1000 quantity with SLTP ranges for NIFTY underlying defined as follows. The Options Plus margin % for the scrip is 0%. Suppose following is the Minimum SLTP- Limit Price difference specified by I-Sec: SLTP Range (in Rs.) 0 upto 2 2 upto 10 10 upto 40 40 upto 80 80 upto 120 120 upto 200 SLTP > 200 In the above example if you place cover Sell order with SLTP as Rs. 95/-, it will fall in SLTP range of Rs. 80-120 and 20% as SLTP - Limit price difference % will be considered for calculating limit price as shown below Limit Price = (95-( 95)*20 %) = 76/-. Further if you wish to place cover order with different SLTP price as per below table then different Minimum SLTP - Limit Price difference % will be considered as defined for that range under a particular underlying.

Will order be allowed to be placed in all SLTP ranges defined for an underlying? What is the maximum percentage that can be defined for SLTP range?

If for a particular SLTP range the Minimum SLTP - Limit Price difference % defined is: 1. NA (Not Allowed): Orders will not be allowed with SLTP prices falling under such range defined as NA. Example: In the above table if any order is placed in this underlying contract with SLTP falling in the range Rs. 0 upto 2 then such orders will be rejected. 2. Maximum 100% : If for a particular SLTP range the Minimum SLTP - Limit price difference percentage is defined as 100% then; i. In case of Fresh Buy, limit price of your cover SLTP order will always be default auto populated as Re. 0.05 and full premium will be blocked as margin for such cases. ii. ii. However in case of Fresh sell, limit price of your cover SLTP order will be auto populated considering '100% SLTP - Limit price difference %' or 'Minimum SLTP - Limit Price value' (only in case of Fresh Sell), whichever is higher. Complete margin will be blocked as explained in below FAQs.

How is limit price of cover order for a Fresh Buy order/position calculated and populated considering the Minimum SLTP-Limit price difference?

You may refer the below table for better clarity on the Limit Price calculation in the last column based on the SLTP range and the Minimum SLTP - Limit Price difference for Fresh Buy orders.

Is it possible to have different SLTP range and 'SLTP - Limit price difference %' of Cover SLTP order for different option types (Call and Put) in the same underlying?

No, For both option types (Call and Put) same SLTP range and 'SLTP - Limit price difference %' of Cover SLTP order will be applicable as defined for that underlying SLTP ranges on the stock list page.

Is it possible to have different SLTP range and 'SLTP - Limit price difference %' of Cover SLTP order for Buy and Sell in the same underlying. How is the limit price of cover order for a Fresh Sell order/position calculated and populated?

Yes. I-Sec at its discretion may define different SLTP range and different 'Minimum SLTP - Limit price - difference %' for Buy and Sell at underlying level depending upon the volatility and market conditions of the stock. In case of Sell, apart from 'SLTP - Limit price difference percentage' there will be a Minimum SLTP - Limit price Value in absolute Rupees terms defined against each range and the same can be seen by visiting the Stock list page under the F&O trading section by selecting the product as Options Plus. This value will be compared with SLTP - Limit price difference percentage and higher of the two will be considered for limit Price computation of the cover SLTP order while order placement. Underlying: NIFTY Cut Off Premium Price: 2.00 In the above example, if you want to enter SLTP as Rs. 60/- for Buy cover SLTP order against your NIFTY fresh Sell order/position. Then SLTP - Limit price difference percentage as per the range table is 20% which is Rs.12/-. However Minimum SLTP - Limit price difference value of Rs.15/- is higher than value obtained from SLTP -; Limit price difference %. Hence limit price will be calculated using minimum difference as Rs.15/- and not considering Rs.12/-. This means that always higher of the two differences based on % or absolute value would be considered for calculating the Limit Price value and margin thereon. Pl. Note: SLTP - limit price difference % is only for example purpose and actual SLTP % may vary.

What is premium cut off price on stock list page?

Premium cut off price is the LTP below or equal to which orders will not be allowed. Example: If the premium Cut off price for NIFTY underlying is set at Rs 3/-, then contracts with LTP greater than Rs 3 will be allowed whereas contracts with LTP lower than or equal to Rs 3/- will not be allowed.

Can my Fresh/Cover SLTP order get part canceled by National Stock Exchange of India Ltd (NSE)?

Yes. Your Fresh/Cover SLTP order can get part canceled by National Stock Exchange of India Ltd (NSE) if part of the ordered quantity tries to match part opposite order whose price is not within the Trade Price execution Range. Assume you take a buy position for the fresh order of 1000 quantity at current market price of 100/-. Simultaneously you also place the Sell (cover SLTP order) of 1000 quantity as Limit price 90/- and SLTP 95/-. At the time of Execution of cover order, there are two opposite orders finding match of 500 quantity each at Rs 91/- and 93/-, respectively. The Trade price Execution Range at that point is Rs 92-98. Such order will be partly canceled (Quantity 500 at Rs 91/-) and partly executed (Quantity 500 at Rs 93/-) by Exchange and you will be exposed to higher risk since there will be no order to cover your part open position. In such case I-Sec on best effort basis would try squaring off your net part open buy position (Quantity 500) at current market price. Assume you try taking a buy position for the fresh order of 1000 quantity at current market price of 100/-. Simultaneously you also place the Sell (cover SLTP order) of 1000 quantity as Limit price 90/- and SLTP 95/-. At the time of Execution of fresh order, there are two opposite orders finding match of 500 quantity each at Rs 97/- and 99/-. The Trade price Execution Range at that point is Rs 88-98. Such order will be partly canceled (Quantity 500 at Rs 99/-) and partly executed (Quantity 500 at Rs 97/-) by Exchange and you will be exposed to higher risk since reverse position will be created if cover SLTP order gets matched and traded within the Trade price Execution Range (88-98). In such case I-Sec on best effort basis would try canceling your part cover SLTP order or if cover SLTP order gets traded then try squaring off your net part open Sell position (Quantity 500) at current market price.

What is Quick Exit ?

Quick Exit is a facility provided to quickly close any particular open Options Plus(OP) orders / positions under a particular contract. Example: Case 1 - In a case where fresh order is part executed and cover order is ordered and you want to book profit by squaring off your position with the help of "Quick Exit" link given on Order Book and Open Position then system will 1. Cancel fresh order for the unexecuted quantity and 2. After confirmation of fresh order cancellation, system will cancel cover SLTP order and place a market square off order for the executed quantity In such cases this link will help customer to book profits for the part executed open position. Case 2 - If your Fresh order is executed and SLTP order is in ordered status and if you do Quick Exit a confirmation message will be displayed stating that "Do you want to proceed with Quick Exit" and on clicking "Ok" system will first cancel your SLTP order which was unexecuted and immediately place a square off order against the fresh executed quantity. Case 3 - If Fresh order is in ordered status and SLTP order is also in ordered status, then on clicking Quick Exit and the process confirmation message will be displayed stating that "Do you want to proceed with Quick Exit" and on clicking "Ok" system will cancel your Fresh and SLTP orders.

Can i do anything if any of my Fresh/Cover order gets part canceled by National Stock Exchange of India Ltd (NSE)?

Yes. You can use "Quick Exit" link available against the Fresh order of such paired order(s) under the Order book & also available under Open position page for the position created, if any. Quick Exit will help to close such open paired order(s) or position, if any under a particular contract. To know more about "Quick Exit" please refer below FAQs.

Will Quick Exit link be displayed against all the orders in order book?

No. Quick Exit link will be displayed only against Options Plus(OP) fresh order(s) in order book irrespective of the status.

Will Quick Exit link be displayed against all the positions in Options Plus(OP) open position page ?

Yes. Quick Exit link will be displayed against each open position on Options Plus(OP) position page under Action column and below "Square OFF at Market Price" link.

Is there any difference if I do Quick Exit from Order book or Options Plus(OP) position page?

No. There is no difference if you do Quick Exit from order book or open position page.

Will Quick Exit link be displayed in order book for already closed positions?

Yes Quick Exit link will be displayed against all fresh orders irrespective of the status. However there will be no impact if you run Quick Exit for already closed positions.