What is FuturePLUS product on ICICI direct?
"FuturePLUS with normal margin" is a product under the exisitng F&O segment. In "FuturePLUS", customers would take buy/sell positions in future contracts with the intention of squaring off the position on the very same day before close of market hours. If, during the day, the price moves in favour (rises in case of a buy position or falls in case of a sell position), then customers would make a profit and vice versa.
How is FuturePLUS different from trading in Futures?
To trade in FuturesPLUS, you have to deposit lesser margin as compared to that required for Futures. Thereby you can trade more in FuturePLUS than you can in Futures with the same limit.
Why should I trade in FuturePLUS?
With "FuturePLUS" you will be able to leverage more on your trading limit by taking buy/sell positions of higher value than what you are currently able to take in Futures.
How can I get started in FuturePLUS?
To start trading in FuturePLUS you can accept the Terms & Conditions online for FuturePLUS by logging into your trading account.
Where will I find the Terms & Conditions for FuturePLUS on logging into my account?
Once you are logged into your trading account with your user id and password, you can go to the F&O section and place order in FuturePLUS product type where you will be requested to accept the Terms & Conditions as a onetime activity before placing the first order.
When can I start trading in FuturePLUS?
Once you have accepted the Terms & Conditions you can start trading in FuturePLUS.
Can I place transaction in FuturePLUS while I am mapped to SPAN margining?
Yes. You can place transactions in FuturePlus while mapped to SPAN margining but the margining for FuturePLUS is independent and will be done as per normal scrip wise margining system instead of portfoilo based margining system.
On which exchanges will I be able to buy and sell in FuturePLUS?
ICICIdirect offers you execution capability on the National Stock Exchange of India Ltd. (NSE).
Can I place transaction in FuturePLUS through Call Centre?
Yes. Similar to Future & Options, you can also place transactions in FuturePLUS through Call Centre.
Which stocks are eligible for FuturePLUS trading? Why is the stock list restricted to specific scrips only?
At present, selected stocks current month Futures have been enabled for trading in FuturePLUS. Only those stocks which meet the criteria on liquidity and volume as decided by ICICIdirectare considered for FuturePLUS trading. The list of stocks is subject to change from time to time by ICICIdirect.
How is the Trigger Price calculated for Future PLUS positions ?
a. Trigger Price is calculated as follows in case of Buy positions:
Example: If you have Future PLUS 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 PLUS 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 Future PLUS 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 Future PLUS 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 Futures positions to Future PLUS?
Yes. Trigger Price will be recalculated on converting Futures position to Future PLUS.
Can a Trigger Price displayed earlier change at a later time?
Yes. Trigger price may change if there is any change in existing position quantity or change in Margin value on existing Positions. Some of the events where Trigger Price may change are like increase in open position quantity in same contract, partial square off of existing position quantity, Add Margin.
In case of profit on a FuturePLUS 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 on square off your open position completely.
Is there EOD MTM (End of Day - Mark To Market) process in case of FuturePLUS
No. FuturePLUS being an intra-day product (i.e. the positions are squared off on the same trading day) there is no requirement of EOD MTM. The FuturePLUS positions converted to futures will go through all Futures EOD processes including EOD MTM.
Is it compulsory to square off the open FuturePLUS position within the same trading day?
Yes. It is compulsory to square off all your open FuturePLUS positions (net of what has already been converted to Future) within the same trading day.
Which contracts under an underlying are enabled for FuturePLUS 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 FuturePLUS segment. Only those contracts, which meet the criteria on liquidity and volume are considered for FuturePLUS 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 an enabled contract be disabled later ?
Yes, it is possible that ICICIdirect disables a contract that was enabled earlier. This could happen due to various reasons like the underlying is disabled as it reaches market wide open position limits, the contract has become illiquid or any other reason to safeguard the interest of investors.
Can I square off my position once the contract is disabled?
Yes, you can square off your open positions using the square off link on the Open Positions page when the contract is disabled for trading.
Can I modify my square off order placed in disabled contracts
Yes. You may visit the online order book to modify details of your pending square off order under a disabled contract. 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.
Where can I view FuturePLUS 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 do I place a FuturePLUS Buy / Sell order?
In the "Place Order" page, you need to define the stock code and choose "FuturePLUS" available in the "Product" drop down box. On clicking on "Select contract", the whole list of contracts available for given stock code expiring in different months would be displayed. Depending on your interest, you can select one of the contracts by clicking on buy / sell link. It will take you to the buy / sell page. Here you may choose Fresh Order "With Normal Margin" radio button for placing normal FuturePLUS orders alternatively you may choose with Stop Loss Limit Margin option (click here to know FAQs on FuturePLUS with Stop Loss Limit Margin option). Values like, your E-Invest account no., exchange, contract details would be auto-populated. You need to define the required quantity, order type i.e. market or limit, order validity period i.e. day, limit price and stop loss trigger price if any.
Can I short sell the shares in FuturesPLUS (i.e sell shares which I do not hold in DP)?
Yes similar to Futures, you can short sell the shares in FuturesPLUS segment. There is no block on your holdings in the demat account.
Can I buy in Futures and Sell the same contract in FuturePLUS? How will this be treated?
Yes. In this case the position gets squared off if you buy in Futures and Sell the same quantity in the same contract in FuturePLUS or vice versa. There is no difference between Future and FuturePLUS transactions for Exchange.But at ICICIdirect the two transactions would appear as open positions in Future Open Positions Page and FuturePLUS Open Positions page respectively.
How do I differentiate between FuturePLUS orders and Futures Orders in the Order book?
There are different order books for Future and FuturePLUS orders respectively. The difference in these order books is the appearance of background colour in FuturePLUS order.
How much margin will be blocked on placing a FuturePLUS order?
Initially, margin is blocked at the applicable margin percentage of the order value. For market orders, margin is blocked considering the order price as the last traded price of the contract. On execution of the order, the same is suitably adjusted as per the actual execution price of the market order. The initial margin percentage can be checked from the "Stock List" link on the FNO trading page for all underlying securities enabled under FuturesPLUS. You can check the Margin obligations on your FuturesPLUS position from the "Know Your Margin" link on FNO trading page.
Would SPAN margin be charged to customers mapped to SPAN margining for FuturPLUS orders?
No. FuturePLUS margining is independent and would work under normal scrip wise margining system instead of portfoilo based margining system. Same margins would be charged for FuturePLUS to SPAN as well as Non SPAN customers.
Is the margin % uniform for all stocks?
No. Margin percentage may differ from stock to stock based on the liquidity and volatility of the respective stock besides the general market conditions. Normally index futures would attract less margin than the stock futures due to being comparatively less volatile in nature. But all FuturesPLUS contracts within the same underlying would attract same margin %.2
Is margin blocked on all FuturePLUS orders?
No. Margin is blocked only on FuturePLUS orders, which result into increased risk exposure. For calculating the margin at order level, value of all buy orders and sell orders (in the same Contract) is arrived at. Margin is levied on the higher of two i.e. if buy orders value is higher than sell order value in the same contract, only buy orders will be margined and vice versa. In other words, margin is levied at the maximum marginable order value in the same contract for FuturesPLUS.
For example, you have placed the following buy and sell orders:
As mentioned above, the higher of buy and sell order value in the same contract is margined. In the above given example, for ACC Jun contract Buy order value is greater since there is no sell order, hence Margin @ 10% would be levied on Rs.142880/-. For the ACC Jul 2008 contract sell order value is greater than buy order value. Hence margin would be levied at specified margin % of 10% on Rs. 143444
What happens if buy or sell orders are placed when there is some open position also in the same underlying?
In such case, first the marginable buy/sell order quantity has to be arrived at. Marginable buy order qty is arrived at by deducting the open net sell position at contractlevel from the buy order quantity at contractlevel. Similarly marginable sell order qty is arrived at by deducting the open net buy position at contract level from the sell order quantity at contract level. Marginable buy / sell order value is then arrived at by multiplying the respective buy / sell order weighted average price with marginable buy / sell quantity. For order level margin, marginable buy order value and marginable sell order value would be compared and higher of two would be margined. For example, if there was an open buy position of 188 shares in "Fut-ACC-31-Jul-2008".
Marginable buy and sell order quantity would be 188 and 188 respectively. Marginable buy and sell order value would be Rs. 141940 and Rs. 143444 respectively.
How is the profit and loss recognized on execution of square up (cover) orders?
Execution price of cover order is compared against the weighted average price at which the position was built up as shown in the "Open Positions for FuturePLUS" and profit/loss is calculated therefrom. For example, say you have a FuturePLUS position - 'Buy 200 Reliance Shares' in contract Futures - ACC- 26 Jun 2008 at an average price of Rs. 300 per share created through the execution of two orders - 'Buy 100 @ Rs. 310 per share' and 'Buy 100 @ Rs. 290 per share'. If you square off a part of the position by selling 50 Reliance Shares @ Rs. 305 per share, the profit on such square off would be calculated as: Quantity squared off * (Square off trade price - Weighted Average price of the position) 50 * (305 - 300) = 250.
Profit or Loss for all your trading transactions can be checked from the "Portfolio Details" link on the FNO trading page for FuturePLUS product.
How do I see my open positions in FuturePLUS?
You can view all open FuturePLUS positions by clicking on "Open Positions" and thereafter selecting "FuturePLUS" under the product dropdown. The FuturePLUS 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.
What is Intra -Day Mark to Market? How does ICICIdirect call for additional margin during the Intra-day MTM process?
Once the available margin falls below the minimum margin, ICICIdirect may at its discretion at a suitable time run the Intra-day Mark to Market process. Through this process the system would block additional margin required out of the limits available, if any. In case there are no limits available the Intra-day Mark to Market process would square off the positions if the available margin falls below the minimum margin.
What is meant by Minimum Margin?
Minimum Margin is the margin amount, you need to keep available with us all the time for your FuturePLUS positions. Once the available margin with us goes below the minimum required minimum margin, ICICIdirect system would block additional margin required from the limit available.
How do you calculate Minimum Margin for FuturePLUS?
Minimum Margin is calculated by taking MM % instead of IM% displayed on site for FuturePLUS.
Would the Margin requirement of my existing position change at any time during the day?
Yes, the margin requirement of your existing position may undergo a change during the day after any time of position creation and this could be due to changes in exchange margins which are received multiple times during the day or I-Sec defined margins basis the internal risk policy. The additional margin required will be blocked from available limits in your account. Please note release of margins will be done as per existing process which will be done on squaring of position and after adjusting for the losses.
How is the additional margin required calculated in case of margin changes during the day?
Below is the additional margin calculation process:
Assume you take a buy position for the fresh market order of 1000 quantity at current market price of 100/- The initial margin percentage (IM%) for the scrip is 20% (IM%).
- Margin Blocked = [{Weighted average price of fresh order * Quantity * IM%}] = [(100*1000*20%)] = 20,000
Now suppose the initia margin percentage (IM%) for the scrip changes to 30%, basis change in margin requirement based on exchange file at any given point of time.
- Additional margin required = New margin on Re computation - Margin Blocked = [(100*1000*30%)]-20,000 = 10,000
In case of Sell position Assume you take a sell position for the fresh market order of 1000 quantity at current market price of 100/- The initial margin percentage (IM%) for the scrip is 15% (IM%).
- Margin Blocked = [{Weighted average price of fresh order * Quantity * IM%} = [(100*1000*15%)] = 15,000
Now suppose the initial margin percentage (IM%) for the scrip changes to 20%, basis change in margin requirement based on exchange file at any given point of time.
- Additional margin required = New margin on Recomputation - Margin Blocked = [(100*1000*20%)]-15000 5000
How do you calculate additional margin required for FuturePLUS positions when the available margin is below the minimum margin required?
Margin required on executed position is re-calculated by taking CMP of respective FuturePLUS position(s) and the FuturePLUS IM % . 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 100 shares of Futures- ACC-26-Jun-2008 at Rs.150 and FuturePLUS IM is 20% and minimum margin is 10%. You would be having a margin of Rs.3000 blocked on this position. The current market price is now say Rs.130. This means the effective available margin Rs. 1000/- which is less than the minimum margin of Rs 1500/- and hence additional margin to be called in for. Additional margin to be calculated as follows:
(a) Margin available
Rs.3000
(b) Less : MTM Loss
(150-130)*100
Rs.2000
(c) Effective available margin
(a-b)
Rs.1000
(d) Minimum Margin
100*150*10%
Rs.1500
(e) Re-calculated margin
100*130*20%
Rs. 2600
a. Additional margin Call
(e-c)
Rs. 1600
How do I check if there is a margin shortfall on any open position?
If available margin on any open position is highlighted in red colour, it indicates that the available margin on that position has fallen and is very close of breaching the minimum margin requirement. If available margin falls below the minimum margin required on that position, then such position may be squared off in the intraday MTM process, if additional margin is not allocated. This shall be considered as a margin call on that position. You are advised to allocate additional margin immediately to meet the margin shortfall else such position may be squared off by I-Sec, on best effort basis.
Further, please note that the Open Positions page does not refresh automatically. You need to frequently refresh the page by clicking on 'View' button to view latest details as the Available Margin is subject to change on every change in CMP.
What happens if limits are not sufficient to meet the additional margin requirements?
Our risk monitoring system/team may, at its discretion place a square off order at market rate to close the open FuturePLUS position. However, before placing the square off order all pending FuturePLUS orders in that underlying-group (contracts having same underlying) are cancelled by our risk monitoring system/team. Following are the sequence of actions taken by our risk monitoring system/team.
1. Cancel all pending FuturePLUS orders in that underlying-group and see if limits are now sufficient to provide for additional required margin. If yes, block the additional margin, else go to step (2).
2. Square off in Lot size of the near month contract in that underlying and group and see if limits are now sufficient to provide for additional required margin. If yes, block the additional margin, else go to step (3).
3. Square off in Lot size of the next month contract in that underlying and group and see if limits are now sufficient to provide for additional required margin. If yes, block the additional margin, else carry on the process in the same way till all the positions in that underlying and group is totally squared off.
However, it is clarified that if, for any reason, the risk monitoring system/team does not square off the open position even in a situation where the limits are not sufficient to meet additional margin requirements, it is ultimately the customer's responsibility to square off the open position on his own to limit his losses. Once a position has been created by the customer, he is solely responsible for the profits or losses emanating from such position. ICICI Securities Ltd is under no obligation to compulsorily square off any open position and in no circumstances, can be held responsible for not squaring off open positions or for resulting losses therefrom.
What happens if the limit is insufficient to meet a margin call but there are unallocated clear funds available in the bank account?
While making an online check for available additional margin, our system would restrict itself only to the extent of trading limit and would not absorb any amount out of un-allocated funds so as to keep your normal banking operations undisturbed. It is, therefore, advisable to have adequate surplus funds allocated for trading when you have open positions. However, ICICI Securities reserves the right to block and/or debit even unallocated clear funds available in the bank account.
Can I do anything to safeguard the positions from being squared off during the Intra-day MTM process?
Yes, you can always allocate additional margin, on any open position. Since the Intraday MTM 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 - FuturesPLUS" page by specifying the margin amount to be allocated further. time you square off your position in that underlying.
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.
Will Trigger Price be calculated immediately on order placement?
No, trigger price will not be calculated immediately on order placement. Trigger Price gets calculated only once your Buy or Sell order in FuturePLUS product results into an executed trade and becomes an open position.
What is the Trigger price displayed on Open Position page for FuturePLUS 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 Availabe Margin amount is displayed in red colour.
Trigger price is a price which indicates that your position may get squared off if LTP breaches the indicated trigger price.
What is the stipulated time limit up to which the FuturePLUS positions need to be compulsorily squared off? What will happen if the FuturePLUS positions are not squared off within the stipulated time?
The stipulated time for compulsory square off will be displayed on the FuturePLUS open positions page of our site everyday. After the stipulated time, if your FuturePLUS positions remain open, the risk monitoring system will cancel all pending orders and square off the open FuturePLUS positions through the End of settlement Square off process on random basis anytime after the stipulated period on a best effort basis. The End of settlement Square off process would be run solely at the discretion of ISEC, we may also compulsorily convert FuturePLUS open position (if any) at the end of the day to Future positions and all the end of day obligations under Futures would be required to be fulfilled by you in cash for such converted positions.
When do orders in Futures Plus 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
Where can I see that my order is freezed?
The orders in F&O that get freezed appear with a blank status in the order book and the details of freeze can be seen in the order log by clicking on the order reference hyperlink.
What should I do in case an order is Freezed?
If your order gets freezed, you can call up the call centre number and provide the required details about the order. ICICI Securities will inform the exchange about the details of your freezed order. Exchange may at its discretion release or reject the request for releasing Freezed orders. Till the order is unfrozen, the limits are blocked to the extent of order which got frozen.
What is Square Off all positions at Market?
Square Off all positions at Market feature will facilitate you to square off all open positions across all underlyings of a product at market with a few clicks. This link is available on open positions page for Future, FuturePLUS and Option products. There shall not be any pending order(s) in any of the contract of a product for using this feature. This feature cannot be used for selected positions and therefore you are advised to keep in mind the liquidity and impact cost in the open position contracts while using this feature. There can be huge differences between bid and offer prices in certain contracts due to less liquidity and squaring off those positions at market may fetch you unfavorable execution price.
What are brokerage charges for FuturePLUS?
The brokerage charge structure applicable for FuturePLUS is the same as prevailing for Futures.
Is there any additional brokerage charged on FuturePLUS positions converted to Future?
No. The brokerage charge applicable would remain the same as it is in the case of Futures product.
Marginable buy and sell order quantity would be 188 and 188 respectively. Marginable buy and sell order value would be Rs. 141940 and Rs. 143444 respectively.
How is the Initial margin (IM) on open position calculated?
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. For example, you have open buy position in Fut - ACC- 26 Jun 2008 for 100 shares @ 150 and IM % for ACC is 25%. In that case, margin at position level would be 15000 * 25% = 3750/-.
When do you release the margins blocked on FuturePLUS positions?
The margin is released after the FuturePLUS positions are squared off. The margin released is net off Margin blocked on Positions +/- Profit/Loss incurred on Square off.
What is meant by 'squaring off a position'? What is a cover order?
Squaring off a position means closing out your FuturePLUS position. For example, if you have FuturePLUS buy position of 500 Reliance expiring on 26th June 2008, squaring off this position would mean taking sell position in 500 Reliance expiring on 26th June 2008. The order placed for squaring off an open position is called a cover order.
How do I place a square off (Cover) order in FuturePLUS 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 for FuturePLUS product.
I have placed the square off order Can I modify that order?
Yes. You can modify square off order if not executed.
Is there any impact on the limit, on execution of a buy/sell order in FuturePLUS?
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.
What will happen in case I have insufficient limits? Would my open position be squared off in this case?
In case your limits are insufficient and there is additional margin requirement then the margin will be blocked till the available free limits. Please note, in case of insufficient limits, your position will not be squared off, however exchange would levy a short margin collection penalty which I-Sec shall recover from you.
How do you calculate available margin?
Available margin is calculated by deducting MTM loss from margin blocked at position level.
Is there any hedging benefit between Futures and Options?
No. Currently ICICIdirect is not offering any hedging benefit between Futures and Options.
Can I do Shares as Margin for FuturePLUS?
Yes. Shares as Margin facility is available for FuturePLUS. For more details you can refer FAQs on Shares as Margin.
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