FAQ ( FUTURES ) FAQ (FUTURES ROLLOVER) FAQ (FUTURES PLUS)

FAQ (OPTIONS) FAQ (SHARES AS MARGIN) FAQ (FNO MARGIN

DEBIT /CREDIT PROCESS)
FAQ(Global Indices) Specific FAQs on BSE

. What is Futures Trading at ICICIDirect.com?

As a customer of ICICIdirect now, you can trade on index futures on NSE

or BSE 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) and Bombay Stock Exchange (BSE). Please
refer the last section on Specific FAQs with regards to BSE to know the
main differences with regards to F&O trading on BSE.

. How is futures trading different from margin trading?

While buy/sell transactions in margin segment have to be squared off on

the same day, buy/sell position in the futures segment can be continued
till the expiry of the respective contract and squared off any time during
the contract life.

Margin positions can even be converted to delivery if you have the

requisite trading limits in case of buy positions and required number of
shares in your DP in case of sell position. There is no such facility available
in case of futures position, since all futures transactions are cash settled
as per the current regulations. If you wish to convert your future
positions into delivery position, you will have to first square off your
transaction in future market and then take cash position in cash market.

Another important difference is the availability of even index contracts in

futures trading. You can even buy/sell indices like NIFTY in case of futures
in NSE, whereas in case of margin, you can take positions only in stocks.

. 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.

. 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.

. 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-27-

Feb-2002". Wherein "Fut" stands for Futures as derivatives product,
"ACC" for underlying stock and "27-Feb-2002" 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 - 27 Feb 2002, Fut - ACC - 27 Mar 2002 and Fut -
ACC - 27 Apr 2002 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 define the stock code and opt for
"Futures" in the "Product" drop down box. On clicking on "Select the
contract", the whole list of contracts available in the 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. Values like, your E-Invest account
no., exchange, contract details would be auto-populated. You need to
define the order type i.e. market or limit, order validity period i.e. day of
GTD, limit price and stop loss trigger price if any.

. 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?

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. You
can check the Margin obligations on your position from the "Know Your
Margin" link on FNO trading page

. Is the margin % uniform for all stocks?

It may not be so. Margin percentage may differ from stock to stock based
on the risk involved in the stock, which depends upon 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 comparatively less volatile in nature. But all contracts within the
same underlying would attract same margin %.
. 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. Otherwise it may come in MTM loop and squared off because of
insufficient margin. It is advisable to keep higher allocation to safeguard
the open position from such events.

. What is meant by 'squaring off ' a position? What is a cover order?

Squaring off a position means closing out a futures position. For example,
if you have futures buy position of 500 Reliance expiring on 27th Feb
2002, squaring off this position would mean taking sell position in 500
Reliance expiring on 27th Feb 2002 on or prior to 27th Feb 2002. The
order placed for squaring off an open position is called a cover order.

. 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.

For example, you have placed the following buy and sell orders.

Contract Details
Buy Orders
Sell Orders

Qty
Rate
Order Value
Qty
Rate
Order Value

Fut - ACC- 27 Feb 2002

100
100
10000

Fut - ACC- 26 Mar 2002

100
155
15500
200
160
32000

Fut - ACC- 29 Apr 2002

100
16
16300

Total
200
25500
300
48300

As mentions above, the higher of buy and sell order value is margined. In
the above given example, sell order value is greater than buy order value.
Hence margin would be levied at specified margin % on Rs. 48300.

. 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 underlying-group level from the buy order quantity at
underlying-group level. Similarly marginable sell order qty is arrived at by
deducting the open net buy position at underlying-group level from the
sell order quantity at underlying-group 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, there is an open sell position of 100 shares in "Fut - ACC- 29
Apr 2002". Marginable buy and sell order quantity would be 100 and 300
respectively. Marginable buy and sell order value would be Rs. 12750 and
Rs. 48300 respectively.

.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.

For example, you have open buy position in Fut - ACC- 26 Mar 2002 for
100 shares @ 150 and IM % for ACC is 25%. In that case, margin at
position level would be 15000 * 25% = 3750/-. Moreover, benefit of
calendar spread margin may also be available to you in case of spread
position.

. 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 for 200 shares in Fut - ACC- 26 Mar 2002 @ 150 and sell position
for 100 shares in Fut - ACC- 29 Apr 2002 @160. 100 buy position in Fut -
ACC- 26 Mar 2002 and 100 sell position in Fut - ACC- 29 Apr 2002 forms a
spread against each other and hence called spread position.This spread
position would be levied spread margin % for margin calculation instead
of IM%. In this example, the balance 100 shares buy position in Fut - ACC-
26 Mar 2002 would be non-spread position and would attract initial
margin.

. 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 100 shares in Future
- ACC- 26 Mar 2002 will be subjected to IM% and 100 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

100*160*10%

Rs. 1600

(b) Non-Spread Margin

100*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.

Lets assume that Future - ACC- 27 Feb 2002 and Future - ACC- 26 Mar
2002 are included in spread definition and Future - ACC- 29 Apr 2002 is
kept out of spread definition. If you take buy position for 200 in Future -
ACC- 27 Feb 2002 and sell position for 100 in Future - ACC- 26 Mar 2002,
100 buy position and 100 sell position would form spread. If you take buy
position for 200 in Future - ACC- 26 Mar 2002 and sell position for 100 in
Future - ACC- 29 Apr 2002, it will not form spread and margin at IM%
would be levied on both 200 buy and 100 sell position.
The same rule applies even at order level. If you place buy order for 100
in Future - ACC- 27 Feb 2002 and sell order for 100 in Future - ACC- 26
Mar 2002, order having larger value would be margined. If you place buy
order for 100 in Future - ACC- 26 Mar 2002 and sell order for 100 in
Future - ACC- 29 Apr 2002, both buy order and sell order would be
margined at IM%.

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 100 shares in Future
- ACC- 27 Feb 2002 @ 150 and IM is 20%. Rs 3000/- would be blocked as
an initial margin. Thereafter you take a sell position for 100 shares in
Future - ACC- 26 Mar 2002 @ 160 and spread margin is 10%. Hence the
execution of Future - ACC- 26 Mar 2002 order is resulting into spread
position. As explained above, margin required would be 100*160*10% =
1600/- now. Hence the excess margin of Rs 1400/- (3000-1600) would be
released and added into your trading limits.
Continuing the above example, if you place an sell order for 100 shares in
Future - ACC- 27 Feb 2002 @ 170, margin of Rs. 3400/- 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 100 shares in Futures -
ACC - 27 Feb 2002 has already been considered as position building up
spread position. If buy position of 100 shares in Futures - ACC - 27 Feb
2002 is squared off, sell position of 100 shares in Future - ACC- 26 Mar
2002 @ 160 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?

In such a scenario, you will have to square off both buy as well sell
position forming spread position. Facility to place such an orders is
available in open futures Position page against the respective net position
at underlying - group level in the form of a link called "Joint square off".
This joint square off link is different than square off link available against
each contract position. On clicking the same, position in all contracts
within spread definition would be displayed. You can then specify the
quantity for any two positions. One has to be buy and other should be
sell. Your orders will go at market rate.

. How What is meant by 2L and L order placement?

2L and 3L order placement allow you to place more than one order in one
go. Maximum 3 orders can be placed in one attempt. All orders placed
through this system are IOC orders. All orders must satisfy the risk criteria
on individual basis. If any of the order fails in risk validation, none of the
order will be accepted by the system.

Orders can be placed in the same underlying contract or different

underlying contracts as well. Orders in the same underlying contract can
be placed using the 'Place 2L & 3L orders' link. Whereas orders in
different underlying contract can be placed through 'My Favorites'. The
execution of orders takes place in the same ratio in which the order was
placed. It can be understood by the following example.

Contract
Minimum Lot
Order Flow
Order Qty
Available Qty

Fut-ACC-28 Feb 2002

1500
Buy
3000
3000

Fut-Nifty-28 Feb 2002

200
Buy
400
200

Orders in Fut-ACC-28 Feb 2002 and Fut-Nifty-28 Feb 2002 have been
placed in 3000 : 400 or 15: 2 ratio. Execution will take place only if the
same ratio can be maintained on execution also. In the above example,
available quantities are not sufficient to maintain the ratio. Hence both
the orders will be cancelled by the exchange.

If order qty for Fut-ACC-28 Feb 2002 is 1500 instead of 3000, execution
will take place for 1500 Fut-ACC-28 Feb 2002 and 200 Fut-Nifty-28 Feb
2002. Remaining 1500 Fut-ACC-28 Feb 2002 and 200 Fut-Nifty-28 Feb
2002 unexecuted orders will be cancelled by the exchange.

. How do I see my open positions in Futures?

You can view all open futures positions by clicking on "Open Positions"
and thereafter selecting "Futures" as product. 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. Positions in contracts forming spread and non-spread are shown in
separate groups. Contracts forming part of the same group will form
spread against each other.

. 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.

. How does 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 / previous trading day EOD MTM
price (as shown in the "Open Positions - Futures" table) and profit/loss is
calculated therefrom.

For example, say you have a futures position - 'Buy 200 Reliance Shares'
in contract Futures - ACC- 27 Feb 2002 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/
Mark To Market (MTM). What is meant by Minimum Margin?

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.

. How do you calculate available margin?

Available margin is calculated by deducting MTM loss from margin

blocked at position 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 100 shares of Futures - ACC - 27 Feb
2002 at Rs.150 and 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

Additional margin Call

(e-c)

Rs. 1600
. 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.

. 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 position. However, before placing
the square off order all pending futures orders in that underlying-group
(contracts having same underlying and recognized in the same group for
spread recognition) 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 futures 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 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.

. 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.

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"?

Seven 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

. 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.

. 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.

. What are "Good Till Day", "Good Till Date" and "Immediate or Cancel"
orders?

Good Till Day (day order) orders are orders remains valid only for one
trading session. Any unexecuted order pending at the end of the trading
session is expired.
Good Till Date (GTD) order allows the user to specify the date till which
the order should stay in the system if not executed. The maximum
number of days for which the GTD order can remain in the system is
notified by the Exchange from time to time after which the order is
automatically cancelled by the Exchange system. The days counted are
inclusive of the day/date on which the order is placed and are inclusive of
holidays.

The order expiry on the last valid date of the order may take some time
on account of day-end reconciliation processes. Since there is a stray
possibility that the order may actually have got 'executed' though it is
showing as 'ordered' on the website, modification/cancellation of the
order is permitted and the order is considered as a valid order for margin
calculation purposes till the order is 'expired'.

An Immediate or Cancel (IOC) order allows the user to buy or sell a

security as soon as the order is released into the system, failing which the
order is cancelled from the system. Partial match is possible for the order
and the unmatched portion of the order is cancelled immediately.

GTD orders can be placed for earlier of the following two dates.
A maximum number of days as notified by the exchange i.e. 7 days
Contract expiry date
For example, exchange allows GTD orders for 7 days. There are following
three contracts available for trading in futures market.

Fut - ACC - 27 Feb 2002

Fut - ACC - 26 Mar 2002
Fut - ACC - 29 Apr 2002
In this example, on 17th February 2002, you can place a GTD order for
earlier of the following two dates.

7 days from the placement date i.e. 23rd Feb 2002.

Respective expiry dates.
Hence on 17th Feb, GTD order in any of the three contracts can be placed
maximum for 23th Feb 2002.

Currently GTD orders are disabled by the exchange.

Settlement Obligation

. 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

. Where can I see my settlement obligation?

You can see your obligation on cash projection page. The date on which
amount is to be deducted from your account 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.

. 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
"Modify Allocation" page.

. 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 exchanges (NSE or BSE), the trading in
that particular underlying is disabled by the exchanges. 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.

. 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 hedging benefit between Futures and Options?

No. Currently ICICI Direct is not offering any hedging benefit between
Futures and Options.

. 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:

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.
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.
Convert to FuturePLUS

. What is meant by 'Convert to FuturePLUS'?

'Convert to FuturePLUS' is a newly added feature provided under Future

product where one can convert his existing position under a contract in
Future to FuturePLUS position of the same contract within the stipulated
time prescribed by I-Sec.

. How do I convert my Future position into a FuturePLUS position?

You will find the link of 'Convert to FuturePLUS' in the 'Actions' column of
Future open positions page against each position under a contract. Once
you choose to convert the existing Future open position to FuturePLUS
position, a remark will appear stating "You are requesting to convert
Future position to FuturePLUS".

. Can I convert part of the open position under a contract to FuturePLUS

position?

Yes. A part quantity out of the Future position quantity under a contract
can be converted to FuturePLUS position.

. Can I convert pending order / partly executed pending order from

Futures to FuturePLUS order?

No. The orders placed in Futures cannot be converted to FuturePLUS

orders. Only open position under a contract is allowed to be converted
from Future to FuturePLUS Position.

. How does 'Conversion to FuturePLUS' impact limits?

When Futures position is converted to FuturePLUS, the excess margin

amount blocked for Futures position would be released after computing
the margin required for FuturePLUS positions. The excess margin to be
released on conversion would be the difference of the required margin
for FuturePLUS and the already blocked margin for Futures position. The
limit would be accordingly increased with the differential amount of
margin requirement.

In case, there is a MTM loss at the time of conversion from Futures to

FuturePLUS there are two scenarios which would impact limits as below:

a) When the loss is less than or equal to the additional released Margin at
the time of conversion to FuturePLUS.

In this case, when the loss is less then or equal to the additional released
margin, the amount equivalent to loss would be blocked from the
additional released margin.

b) When the loss is more then the additional releasable Margin at the
time of conversion to FuturePLUS.

In such a case, the system will block the loss upto additional releasable
margin. The entire loss would be deducted from the available Margin of
the FuturePLUS position. If in such a case,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. In case there are no limits
available to block the entire loss, system will still allow you to covert the
positions to FuturePLUS without blocking any amount from free limits but
the Intra-day Mark to Market process would square off the positions if
the available margin falls below the minimum margin.

For Example, consider the following scenario for Future Buy case,
Particulars Contract Qty Base Price IM% MM%
FuturePLUS FUT-RELIND-26-April-2012 250 1000 6.00% 4.00%
Future FUT-RELIND-26-April-2012 250 1000 11.00% 8.00%

Current limit available = Rs.50000/-

a) Margin blocked on taking Future position= 250*1000*11% = 27500.
Free Current limit available after the position taken=50000-
27500=22500
b) On Convert To FuturePLUS, required Initial Margin for FuturePLUS =
250*1000*6% = 15000

Additional Margin that would be released and added to limits if no

loss=27500-15000 =12500

The two scenarios that arise are:

a) When the loss is less than or equal to the additional released Margin
i.e. loss is less than or equal to Rs. 12500.

When converting to Future PLUS if the LTP of the contract falls to say
Rs.980, then in such a case,

Loss = (1000-980) *250 = Rs. 5000.

Thus,on conversion to FuturePLUS the total amount that would be

blocked is 15000(Required Margin for FuturePLUS position) + 5000(Loss)
= Rs. 20000.

Thereby, after taking the FuturePLUS position,

Blocked Margin = Rs. 20000

Minimum Margin = Rs.10000

Available Margin = Rs.15000 i.e. (20000-5000)

Additional releasable Margin added to limits = Rs. 7500

Thus in this case on 'Convert to FuturePLUS' additional margin of Rs.7500
would be added to your current limits.

b) When the loss is more than the additional releasable Margin on

conversion to FuturePLUS i.e.Loss is more than Rs.12500.

When converting to Future PLUS if the LTP of the contract falls to say
Rs.945, then in such a case,

Loss = (1000-945) *250 = Rs. 13750.

Thus,on conversion to FuturePLUS the total amount that would be

blocked is Rs. 15000 (Required Margin for FuturePLUS position) +
12500(Loss upto additional releasable margin) = Rs. 27500.

Thereby, on conversion to FuturePLUS position,

Blocked Margin = Rs. 27500

Minimum Margin = Rs.10000

Available Margin = Rs.27500-13750=13750

Additional releasable Margin added to limits = Rs.0

Thus in this case on 'Convert to FuturePLUS' no additional margin would

be added to your current limits.

Is there any additional brokerage charged on Future positions converted

to FuturePLUS?

No. The brokerage charge applicable would remain the same as it is in

the case of Futures product.

Research And Other Trading Tools

. 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 Derivatives

School, My Index and Futures Pricing calculator to help you in making
better decisions.

In "Derivatives School" you can get whole lot of information like

introduction to futures and options, its application, pricing, various
trading strategies etc.

"My Index" allow you to change the price of selected stocks and see its
impact on index.

"Futures Pricing" facilitate you in finding the arbitrage opportunities. If

futures price moves away from the fair price valuation, arbitrage
opportunities will exist.

"I CLICK-2-GAIN" provides you tips for taking informed trading decisions
FAQ (FUTURES ROLLOVER) FAQ (FUTURES) FAQ (FUTURES PLUS)
FAQ (OPTIONS) FAQ (SHARES AS MARGIN) FAQ (FNO MARGIN
DEBIT /CREDIT PROCESS)
FAQ(Global Indices) Specific FAQs on BSE

. What is Rollover?

Rollover is an additional facility which will help you to square-off your

near month position and take a fresh position in the same direction in
Middle/Far month contract of your choice. Rollover order will be 2 L(you
may refer above FAQ on 2L) IOC(Immediate or cancel) order and both
orders to have same number of lots.

. Can I place rollover for both Future and Options product?

No. Currently, rollover facility will be provided only for your Futures
positions

. Can Rollover order be placed for positions in all expiring contracts?

No. Rollover order can be placed only for your Futures positions in the
Near month expiry contracts.

. On which exchanges will I be able to use the Rollover facility ?

Rollover facility will be provided only on National Stock Exchange of India

(NSE).

. From where can I place Rollover orders?

A link named 'Rollover' will appear against your near month future
positions on the open position page. You can click on this Rollover link to
place rollover orders.

. How will the Rollover facility work?

Once you click on Rollover link from your open positions page, a 2 Leg
order placement page would open. From the same page you can place 2
orders, first being the square off order for your near month Future
position against which Rollover link was selected and second order would
be to create a fresh position in the same direction as that of the existing
near month position. You can choose to select the second order in either
middle month or far month contract. For both the orders under rollover,
you can enter the quantity upto position quantity, select the order type
as (Limit or Market) and enter appropriate price in case of limit orders.
You can place same number of lots in both orders forming part of rollover
and either both will get immediately executed or cancelled for the same
number of lots depending on the match available at exchange end.

. Can I place Market and Limit orders under the Rollover facility ?

Yes. It is possible to place both Market and Limit orders under the
Rollover facility. However, it is preferable to choose both the order type
as market for smooth Rollover. You are requested to note that in case of
market orders if the scrip is liquid and less volatile then execution may
take place close to the current market price prevailing but in case of
illiquid scrips and volatile market your execution price may vary from the
current market price which was prevailing at the time of Rollover order
placement.

. Can I place Rollover order for more than open position Quantity?

No, Rollover order can be placed only upto the net open position
quantity. You would need to consider the cover orders already placed
against such positions for which the rollover facility is being used and
Rollover only the balance open position quantity.
. Can I place part Rollover order against the open position quantity ?

Yes, you can place part Rollover order against the open position quantity
in multiple of the lot size.

For example: If you have buy position of 150 quantity in Nifty Futures
February contract and lot size is 50, then you can place rollover orders for
50 or 100 or 150 quantity of your choice.

. If I have placed cover order then will I be able to place rollover order?

You cannot place rollover order, to the extent of a cover square off order
quantity, which is already placed by you but you can still continue to
place Rollover orders to the extent of remaining net open position
quantity.

For example: If you have buy position of 150 quantity in Nifty Futures
February contract and you have already placed cover square-off order for
50 quantity then you can place rollover orders only upto the remaining
position i.e.100 Quantity.

. Is Rollover facility available for both buy as well as sell position?

Yes. Rollover facility will be available against both buy as well as sell open
positions, if they are in the near month Future contract.

. How can I distinguish between Rollover orders from other orders?

In order book, under the "Order Ref." column, a caption that "This is a
Rollover Order" is provided to help you easily identify your rollover
orders.

. Will my Rollover orders always get executed?

Rollover orders are 2L IOC orders and like other orders will get executed
at exchange end, only if they get a suitable match. Since these orders are
2L IOC orders, if there is no match they stand cancelled on immediate
basis. Thereby, it is preferable that you visit the online order book to
check the status of your rollover orders and in case they are not executed
you may choose to place rollover again.

. Will Rollover facility be available if I am mapped to SPAN or Non-SPAN

margining?

Yes, Rollover facility would be available to you under both SPAN as well
as Non-SPAN margining system.
. Can I Place Rollover orders after market hours?

No, You cannot place Rollover orders after market hours. Rollover facility
is available only during market hours.

. Will I be able to do rollover in any contract?

You will be able to rollover only contracts which are enabled for trading
under Future product. You may visit the 'Select Contract' page displayed
after clicking 'Place Order' page to know the list of contracts enabled for
trading. In case all future month contracts are disabled due to liquidity
then Rollover will not be allowed in that particular underlying.

. Will I be able to place Rollover order on the date of expiry of Futures

contract?

Yes, you will be able to use the rollover facility till the date of expiry of
the Futures contract provided that particular underlying is enabled for
Rollover and contract is enabled for trading.

. If I am a Non-SPAN customer then how will margining be done for

Rollover?
At the time of Rollover order placement, additional differential margin
required will be computed after giving the effect of rollover trades in
both the months as follows:

Additional margin required on Rollover = Margin required to take

position in the new month contract - Existing margin blocked on near
month position + Notional Loss/Profit of Near Month Futures contract

If you do not have sufficient limit to bring additional margin required on

Rollover, then you will not be allowed to place Rollover order.

For Example: You have a near month position of 50 quantity Buy in NIFTY
say Fut-Nifty- 28-Feb-2013 at Rs. 6080 and IM% is 8%. You now want to
Rollover this entire position in Fut-Nifty-28-Mar-2013 at Rs. 6100 and the
LTP of Fut-Nifty-28-Feb-2013 is 6075 at the time of rollover.

Then in the above example;

Existing Margin blocked = 6080*50*8% = 24320

New Margin required = 6100*50*8% = 24400
Notional Profit/(Loss) = (6075-6080)*50 = 250 Loss
Additional Margin required to Rollover = 24400 - 24320 + 250 = 330

. Can I place rollover order for my spread position?

Rollover link will be available if one of the spread contract positions is in

the near month. Please note that if you place rollover orders in the same
contracts as that of the existing spread position it may result into square
off of the entire spread position and no rollover will happen. Thereby,
you are requested to to use the rollover facility only in case of non spread
positions and if you wish to square off your spread position it is
preferable that you use the existing joint square off facility under Non
SPAN or use the Rollover facility but this will result in square off of both
the contract positions forming spread.

. Are there any additional charges for Rollover?

No. There are no additional charges for rollover and the existing
brokerage and applicable statutory charges would be levied even on the
Rollover transactions depending on the brokerage plan availed by you.
FAQ (FUTURES PLUS) FAQ (FUTURES) FAQ (FUTURES ROLLOVER)
FAQ (OPTIONS) FAQ (SHARES AS MARGIN) FAQ (FNO MARGIN
DEBIT /CREDIT PROCESS)
FAQ(Global Indices) Specific FAQs on BSE

1.Why Future Plus

. What is FuturePLUS product on ICICI direct?

"FuturePLUS" 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.

2.Get started with FuturePLUS

. 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.

3.Trading in FuturePLUS

. 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) and Bombay Stock Exchange (BSE). Please refer the last
section on Specific FAQs with regards to BSE to know the main
differences with regards to F&O trading on BSE.

. 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 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.

. 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.

. 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. 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.

. 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 %.

. 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 your
open FuturePLUS position. Otherwise it may come in Intra Day Mark to
Market (MTM) loop and squared off because of insufficient margin. It is
advisable to keep higher allocation to safeguard the open position from
such events.

. 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:

Contract Details
Buy Orders
Sell Orders

Qty
Rate
Order Value
Qty
Rate
Order Value

Fut - ACC- 26 Jun 2008

188
760
142880

Group Total(Highest order value to be margined)

188

142880

Fut - ACC- 31 Jul 2008

188 755 141940 188
763
143444

Group Total(Highest order value to be margined)

188
143444

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".

Contract Details
Buy Orders
Sell Orders

Qty
Rate
Order Value
Qty
Rate
Order Value

Fut - ACC- 31 Jul 2008

188
755
141940
376 763 286888

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.
. 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 meant by 'Convert to Future?

'Convert to Future' (CTF) is an added feature provided under FuturePLUS

product where one can convert his existing position under a contract in
FuturePLUS to Future position of the same contract within the stipulated
time prescribed by I-Sec. You will find the link of 'Convert to Future' in
open positions page against each position under a contract in the column
of 'Actions'. Once you choose to convert the existing open position to
Future, following remark will appear "You are requesting to convert
FuturePLUS position to Future".

. Can I choose not to square off a FuturePLUS position on the same

trading day?
FuturePLUS is an intraday product wherein any position taken needs to
be squared off on the same trading day or Convert to Future (CTF) till the
end of the day by the customer itself. If customer doesn't place square
off or does CTF for his position by the end of the day before the
stipulated time, then following possibilities may arise, viz:
1) ICICI Securities may run End of settlement Square off process which
will square off the open FuturePLUS position generally 3:15 pm onwards
on best effort basis.However, I-Sec reserves the right to change the
square off timing , if required, especially during volatile days.
OR
2) The FuturePLUS position may be compulsorily converted to future
position by the system at the end of the day.

. How do I convert my FuturePLUS position into a Future position?

You will find the link of 'Convert to Future' in the 'Actions' column of
FuturePLUS open positions page against each position under a contract.
Once you choose to convert the existing FuturePLUS open position to
Future position, a remark will appear stating "You are requesting to
convert FuturePLUS position to Future".

. Can I convert my position in Future into FuturePLUS Position?

Yes. You can convert your Future open position to FuturePLUS position.
. Can I convert part of the open position under a contract to Future
position?

Yes. A part quantity out of the FuturePLUS position quantity under a

contract can be converted to Futures position provided sufficient margin
is available.

. Can I convert pending order / partly executed pending order from

FuturePLUS to Futures order?

No. The orders placed in FuturePLUS cannot be converted to Futures

orders. Only full open position under a contract is allowed to be
converted from FuturePLUS to Future Position provided sufficient margin
is available.

. How does 'Conversion to Future' impact limits?

When FuturePLUS position is converted to a Futures position, the

additional margin amount is required as applicable for Futures positions.
The additional margin to be blocked on conversion would be the
difference of the required margin for Futures and the already blocked
margin for FuturePLUS position. The limit would be accordingly reduced
with the differential amount of margin requirement. On conversion of
FuturePLUS position to Future position the condition of Available
Margin(AM)* and Minimum Margin(MM)* for the proposed Future
position would be checked before blocking the additional margin amount
required as follows:

1. If AM>=MM,of proposed Future position then additional margin

required will be,

Initial Margin % required for Future position on Base price i.e.weighted

average price of existing FuturePLUS position - Blocked Margin for
existing FuturePLUS position.

2. If AM<MM, of proposed Future position then additional margin

required will be,

Initial Margin required for future position on Base price i.e.weighted

average price of existing FuturePLUS position - Available Margin for
existing FuturePLUS position.

* Please refer below FAQs to know Available Margin and Minimum

Margin
For both the above scenarios, if current limit is more than or equal to the
additional margin required, only then you would be allowed to convert
your existing FuturePLUS position to Future position.

For, example, consider the following scenario,

Particulars Contract Trade Flow Qty Base Price IM%
FuturePLUS FUT-RELIND-26-April-2012 Buy 250 1000 6.00%

Current limit available = Rs.50000/-

a) Margin blocked on taking Future PLUS position= 250*1000*6% =

15000.
Current limit available after the position taken=50000-15000=35000
b) On Convert To Future, required Initial Margin for Futures =
250*1000*11% = 27500

1. If on conversion Available Margin is more than or equal to Minimum

Margin for Future position.
For the above mentioned scenario,in this case 1. CMP of the contract is
considered as Rs.990 at the time of conversion
The calculations will be done for the proposed Future Position and
following values will be checked:
a. Required Initial Margin for proposed Futures position on Base Price =
250*1000*11% = 27500
b. Required Minimum Margin for proposed Futures position =
250*1000*8% = 20000
c. MTM Loss on existing FuturePLUS position = (990-1000)*250 = -2500
d. Available Margin = 27500-2500 = 25000

In this case, Available Margin > Minimum Margin i.e. c > b,

Hence ,On "Convert to Future",

Additional Margin required = Initial Margin required for Future position -
Blocked Margin for existing FuturePLUS position taken
= 27500 - 15000 (FuturePlus Margin Blocked)
= 12500 .
Thus, on "Convert to Future", Additional margin of Rs.12500 would be
required. If current limit is not available to block the additional margin of
Rs. 12500 then you will not be allowed to convert your FuturePLUS
position to Futures position.

2. If on conversion Available Margin is less than Minimum Margin.

For the above mentioned scenario, in this case 2. CMP of the contract is
considered as Rs.950 at the time of conversion

The calculations will be done for the proposed Future Position and
following values will be checked::

a. Required Initial Margin for proposed Futures position on Base price=

250*1000*11% = 27500
b. Required Minimum Margin for proposed Futures position =
250*1000*8% = 20000
c. MTM Loss = (950-1000)*250 = -12500
d. Available Margin of proposed Future Position= 27500-12500 = 15000

In this case proposed Future Positions, Available Margin < Minimum

Margin,

FuturePLUS Available Margin = 15000-12500 = 2500.

Hence ,On "Convert to Future",

Additional Margin required = Initial Margin required for Future position -
Available Margin for existing FuturePLUS position.
= 27500 - 2500 (FuturePlus Available Margin)
= 25000

Thus, on "Convert to Future", Additional margin of Rs.25000 would be

required. If current limit is not available to block the additional margin of
Rs.25000 then you will not be allowed to convert your FuturePLUS
position.

. 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.

. How do you calculate available margin?

Available margin is calculated by deducting MTM loss from margin

blocked at position level.

.How do you calculate additional margin required for FuturePLUS

positions 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 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
. 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.

. 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 there any "no-delivery period" concept in FuturePLUS?

Similar to Futures there is no "no-delivery period" concept in FuturePLUS.

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
. 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.

. 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.
. Can I do convert my FuturePLUS position to Future position instead of
squaring up the position before the time limit expires?

Yes. You can do so at any time before the stipulated time limit.

. What happens if for some reason a FuturePLUS position remains open

at the end of the day?

ICICIdirect's risk monitoring system would square off the positions but
the onus lies on you to close out all open positions. If for some reason,
the position remains open at the end of the day,it would be converted to
futures and you will have to make all the necessary arrangements for
funds for the daily settlement of the position and shall be fully liable for
the consequences of the same.

. 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 exchanges (NSE or BSE), the trading in
that particular underlying is disabled by the exchanges. Accordingly ISEC
would also disable the trading in that particular underlying during market
hours. Further ISEC at it sole discretion may disable an underlying or any
contract.
. 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 positions page.

. Can the FuturePLUS product be disabled?

Yes. ICICIdirect may disable the product depending upon the market
conditions.

. 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.

. 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:

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.

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.

4. Brokerage Charges

. 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.
FAQ (OPTIONS) FAQ (FUTURES) FAQ (FUTURES ROLLOVER) FAQ
(FUTURES PLUS) FAQ (SHARES AS MARGIN) FAQ (FNO MARGIN DEBIT
/CREDIT PROCESS)
FAQ(Global Indices) Specific FAQs on BSE

. What is Options Trading at ICICIDirect.com?

As a customer of ICICIdirect now, you can trade on index options on NSE

or BSE 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.

. What is an American Option?

These options give the holder the right, but not the obligation, to buy or
sell the underlying instrument on or before the expiry date. This means
that the option can be exercised early.

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

ICICIDirect offers its customers execution capability on the National Stock
Exchange of India Ltd. (NSE) and Bombay Stock Exchange (BSE). Please
refer the last section on Specific FAQs with regards to BSE to know the
main differences with regards to F&O trading on BSE.

. 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 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.

. 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%.
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.

. 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 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

. 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/-.

. 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.
. 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.

. 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 is the Basis of MTM in case of Sell Call and what happens in the
MTM process?

As soon as you place a Sell call 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 above the Trigger price in case of Sell Call, the Contract would be in
the MTM loop. First the Additional margin recalculated as per the new
scenario due to price rise 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.

(Strike Price + Margin Amount)

Trigger Price for Sell Call position = -------------------------------------
(1 + Minimum Margin %)

For Example:

You have a sell position in OPT-ACC-30-May-2002-150-CE

Current Market price of ACC is 140.

Initial margin on ACC is 30%.

Initial Margin = (140*30% - (150-140)) = Rs 32

Minimum Margin on ACC is 10%.

Trigger Price for Sell Call Position = (150 + 32) / (1+ 10%) = 165.45

When the ACC price would rise above 165.45 the sell position in OPT-
ACC-30-May-2002-150-CE would be in the MTM Loop.

. 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.

(Strike Price - Margin Amount)

Trigger Price for Sell Put position = -------------------------------------
(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

When the ACC price would fall below 124.44 the sell position in OPT-ACC-
30-May-2002-150-PE would be in the MTM Loop.

. 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

Settlement Obligation

. What kind of settlement obligation will I have in Options?

Brokerage: Any Transaction you enter into will attract brokerage.
Brokerage is debited to your account at the end of the day.
Premium payable or Receivable
Profit on Exercise
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.
. On T+1 day I have a payin for a particular trade date and also payout for
a different trade date? Will payin and payout be run separately?

No, if payin or payout falls on the same date, the amount is internally set
off and only the net result payin or payout will be debited or credited to
your bank account.

In cash projection, distinct particulars would be given for payin/payout

internally settled and settled by way of debit/credit in bank.

. What is meant by 2L and 3L order placement?

2L and 3L order placement allow you to place more than one order in one
go. You can also place a combination of Futures and options orders using
2L and 3L orders Placement. Maximum 3 orders can be placed in one
attempt. All orders placed through this system are IOC orders. All orders
must satisfy the risk criteria on individual basis. If any of the order fails in
risk validation, none of the order will be accepted by the system.

Orders can be placed in the same underlying contract or different

underlying contracts as well.2L & 3L orders can be placed from the
following path under the trading section of the website: F&O > My
Favourites > 2L/3L tick box. The execution of orders takes place in the
same ratio in which the order was placed. It can be understood by the
following example.

Contract
Minimum Lot
Order Flow
Order Qty
Available Qty

OPT-ACC-30-May-2002-150-CE
1500
Buy
3000
3000

Fut-ACC-28 Feb 2002

200
Buy
400
200
Orders in Fut-ACC-28 Feb 2002 and OPT-ACC-30-May-2002-150-CE have
been placed in 3000: 400 or 15: 2 ratio. Execution will take place only if
the same ratio can be maintained on execution also. In the above
example, available quantities are not sufficient to maintain the ratio.
Hence both the orders will be cancelled by the exchange.

If order qty for OPT-ACC-30-May-2002-150-CE is 1500 instead of 3000

and order qty for Fut-ACC-28 Feb 2002 is 200 instead of 400 , execution
will take place for 1500 OPT-ACC-30-May-2002-150-CE and 200 Fut-ACC-
28 Feb 2002. There will be no balance quantity for cancellation by
exchange in this case.

. 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 exchange , the trading in that
particular underlying is disabled by exchange. 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.
. I have placed the square off order. Can I modify that order?

Yes. You can modify square off order if not executed.

. 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

. 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.

. 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).

FAQ (SHARES AS MARGIN) FAQ (FUTURES) FAQ (FUTURES

ROLLOVER) FAQ (FUTURES PLUS) FAQ (OPTIONS) FAQ (FNO
MARGIN DEBIT /CREDIT PROCESS)
FAQ(Global Indices) Specific FAQs on BSE
. What forms of Margin are acceptable for taking futures , options and
Margin positions?

For Futures, Options & Margin positions, margin can be given in the
following forms:

(a) Cash (by way of allocation of funds from your bank account),
(b) Specified securities (by way of depositing securities allocated from
your demat account).

For Futures & Options, the limit granted is a sum of (a) & (b) and the
margin is blocked on the individual positions on the overall basis and not
in any proportion of (a) & (b). For Margin (Client and Broker mode)
position, the limit granted is a sum of (a) & (b) and the margin is blocked
on the individual positions first from Securities limit and then from Cash
limit.

Though securities limit is granted for exposure to F&O and Margin

positions, actual payment is required for settlement dues arising from
mark-to-market losses on Futures positions, premium payments for
Options bought, square off losses on Futures , Options and Margin
positions, Convert To Delivery (CTD) in case of Margin positions and
brokerage (inclusive of other charges) applicable on the transactions.
. When should cash be made available for settlement dues?

Cash should be made available in your bank account at the end of trading
hours on the date on which the amount is due as per the schedule in the
'Cash Projections' page.
For example,
(a) All Futures & Options obligations are settled by exchange on T+1 basis
but the scheduled date of debit from your bank account is day T itself
(b) All equity obligations are settled by exchange on T+2 basis but the
scheduled date of debit from your bank account is day T+1 .

. What happens if cash is not made available for any settlement dues ?

Pay-in is normally made from your allocation to Equity and F&O from
your bank account. In case this allocation is insufficient, ICICI Securities
reserves the right to debit even unallocated clear funds available in your
linked bank account.
In case the allocation and clear funds from your bank account is not
sufficient to meet the pay-in obligations for Equity and F&O, ICICI
Securities can sell appropriate quantity of securities deposited as margin.
The proceeds of the securities sold will then be utilized to meet the pay-
in obligations for Equity and F&O.
. How do I deposit Securities as Margin?

From the securities you have allocated from your demat account which
you have not already sold, you can just specify the quantity to be
deposited as margin.
First see the securities that you have already deposited by clicking on the
'Deposited Securities' link. Thereafter, click on the 'Deposit/Create Limit '
sub-link. Here, you can specify the quantity that you wish to deposit out
of the allocated quantities free to be deposited. You can even deposit all
the allocated quantities in one go by clicking on the 'Deposit All' button.
Allocated quantities free to be deposited will be displayed on this page.
This requires that you must have first allocated securities from your
demat account in the 'Demat Allocation' page in the Equity section.

. On depositing securities as margin, when do limits become available

there against?

Limits become available against the shares deposited as margin

immediately.

. Immediately on depositing securities as margin, by how much do limits

increase? Where can I view all securities deposited as margin?
On depositing securities, Total Securities limit will increase immediately
by the 'Value of deposit after Haircut' indicated on the 'Deposit/Create
Limit' page. This is arrived at for each security as per the following
formula:
(Quantity of the stock deposited * Valuation Price of the stock ) * (1 -
Haircut% for the stock)
The valuation price and haircut% are specified by ICICI Securities.
Generally, the closing price of a stock on the previous day is specified as
the valuation price. The haircut% for all eligible stocks can be seen on the
'Stock List' page. The valuation price and the haircut% for all stocks
available for deposit can also be seen in the 'Deposit/Create Limit' page
The limit arising out of securities deposited can be seen on the 'Modify
Securities Limit' and Deposited Securities links on the Shares as Margin
page.
Total Current Limit for trading in the respective segment would be
arrived at by aggregating the following:
(a) Allocation of funds from bank account (voluntary in the form of 'Bank
Allocation and involuntary in the form of 'Block for Trade')
(b) Equity or F&O Securities allocation
(c) Settlement balances (net)
The details of total securities limit arising out of individual securities
deposited can be seen on the Deposited Securities link under Shares as
Margin page.
.Can I immediately start trading using the limit arrived on depositing
securities as margin?

You will have to first allocate the securities limit for trading separately to
Equity and or F&O segment as per your requirement using 'Modify
Securities Limit' link under 'Shares as Margin' page. Once you have
allocated securities limit, you will be immediately able to use your
securities limit for trading in Equity (margin product only) and or F&O
segment.

.Do I have to allocate full securities limit for trading or can I do part
allocation of the total securities limit ? Where can I see my allocated
securities limit for trading in Equity and F&O segments?

You can allocate part of the total securities limit for trading in Equity and
or F&O segment and the unallocated securities limit will be available as
'Net Withdrawal Balance' under 'Modify Securities Limit' link on Shares as
Margin page. The net withdrawal balance is the securities limit balance
which you can allocate any time for further trading in Equity and or F&O
segments.

The allocated securities limits would be visible on the Limit pages under
Equity and F&O trading sections respectively. However, the maximum
securities limit that can be utilised in both the segments taken together
cannot exceed the total securities limit displayed under the 'Modify
Securities Limit' link under the Shares as Margin page.

.Can I deposit any security lying in my demat account as Margin?

We have enabled only select securities which meet the criteria for
liquidity and volume for depositing as Margin. This list can be seen on the
Stock List page.

Further, balances of only these securities are available when you access
the Deposit/Create Limit sub-link as explained in the previous answer.

Inspite of being a security eligible for deposit, its deposit may not be
permissible in either of the following scenarios :
(a) the quantity of the securities deposited is less than the minimum
allowable quantity
(b) the quantity of the deposit of a particular security including previous
deposits of the same security is in excess of a specified maximum
quantity allowed to be deposited
(c) the quantity of the deposit of a particular security including previous
deposits of the same security including other clients also is in excess of a
specified quantity
.What do you mean by "Modify Securities Limit? ?

Once you have deposited securities you can allocate Securities Limit for
trading in Equity and or F&O from Modify Securities Limit link under
Shares as Margin page. This page will display details like Total Securities
Limit, Equity Shares as Margin Allocation, F&O Shares as Margin
Allocation, Net Withdrawal Balance, Equity Free Securities Limit and F&O
Free Securities Limit. You will not be able to use this Total Securities limit
for trading in Equity and F&O unless you allocate it segment-wise.
Further, you can also add or reduce the allocation in each segment
through this Modify Securities Limit page.

.What do you mean by Total Securities Limit?

The limit created from depositing the shares as margin is called as Total
Securities Limit. The Total Securities Limit is required to be allocated to
Equity and F&O segments for trading. Post allocation it is the sum of Net
Withdrawal Balance, Equity Shares as Margin Allocation and F&O Shares
as Margin Allocation.
.What do you mean by Equity Shares as Margin Allocation?

Equity Shares as Margin Allocation is the deposited securities limit which

is allocated for trading in Equity segment. When you allocate an amount
from your Total Securities limit to Equity segment, the allocated amount
is displayed under Equity Shares as Margin Allocation. This allocation can
be used for trading in Equity segment for trading in Margin product only.

. What do you mean by F&O Shares as Margin Allocation?

F&O Shares as Margin Allocation is the deposited securities limit which is

allocated for trading in F&O segment. When you allocate an amount from
your Total securities Limit to F&O segment, the allocated amount is
displayed under F&O Shares as Margin Allocation. This allocation can be
used for trading in F&O segment only.

. Can I use securities limit allocated in Equity for trading in F&O and vice
versa?

No. The allocated securities limit is segment specific and can be used only
for the segment in which you have allocated the securities limit. But if
there is free securities limit under a particular segment then the same
can be reduced and reallocated to the other segment.
For example;
You have deposited securities for which you have got a total securities
limit of 1,00,000/- and you have allocated 80,000/- to Equity and
20,000/- to F&O. You have used Equity securities limit of 50,000/-
thereby 30,000/- is free. If you wish to increase the securities limit to
trade in F&O you can reduce this free securities limit of 30,000/- from
Equity and add this to F&O securities allocation. Thereby, having F&O
Shares as Margin allocation of 50,000/-

.What do you mean by Net Withdrawal Balance?

The unallocated securities limit will be available as Net Withdrawal

Balance under Modify Securities Limit link on Shares as Margin page. The
net withdrawal balance is the securities limit balance which you can
allocate at any time for further trading in Equity and or F&O segments.
The net withdrawal balance would not be considered towards margin
requirement for Equity and / or F&O segment neither for taking new
positions nor towards additional margin requirement arrived during the
intra day / EOD mark to market process run by I-Sec.

Net Withdrawal Balance = Total Securities Limit- Equity Shares as Margin

Allocation- F&O Shares as Margin Allocation

.What do you mean by Free Securities Limit for Equity?

The allocated securities limit for Equity which remains unused is called as
Free Securities Limit for Equity. This free Equity securities limit can be
used for further trading or can be reduced from Equity allocation and
your net withdrawal balance will accordingly increase.

.What do you mean by Free Securities Limit for F&O?

The allocated securities limit for F&O which remains unused is called as
Free Securities Limit for F&O. This free F&O securities limit can be used
for further trading or can be reduced from F&O allocation and your net
withdrawal balance will accordingly increase.

.What information is given on the Equity Limit page?

The Equity Limit page displays the amounts under Cash Allocation, Equity
Securities Allocation, Current Cash limit, Current Securities Limit and the
Total Current Limit for selected exchange and settlement (explained
ahead).
The settlement balances section shows the utilization of Securities & Cash
limits.

.What do you mean by Current Cash Limit under Equity Limits?

Current Cash Limit under Equity Limits is the free cash limit available,
which is the unutilised cash limit out of the total cash limit allocated by
you. The current cash limit can be utilized by you for taking further
positions in the Equity Segment.

For Eg.:
You have allocated 10,000 in cash for trading in Equity segment. You
have utilized 7000 for trading in Equity Margin. Thereby, the free cash
limit available is 3000 which will be displayed as Current Cash Limit on
the Equity Limit page.

.What do you mean by Current Securities Limit under Equity Limits?

Current Securities Limit under Equity Limits page is the free securities
limit available for further trading in Equity segment. This is the unutilised
securities limit out of the total Equity Securities limit allocated by you.

For Eg.:
If you have allocated Securities Limit worth 16,000 to Equity segment
and 7000 is utilised towards trading in Equity then the balance securities
limit of 9000 in Equity will be displayed as Current Securities Limit under
the Equity Limit page .
.What is meant by Total Current Limit under Equity Limits?

Total Current Limit under Equity means the unutilised limit available for
further trading in Equity and is the sum of Current Cash Limit and Current
Securities Limit .

.If I have both Cash and Securities limit then will my Cash limit be blocked
on on placement of order or Securities limit?

1. In case you are trading in Equity: If you have both Cash and Securities
limit then on placement of Equity margin order , your available current
securities limit will be utilized first for the margin required, until it is
completely exhausted. Current Cash Limit will be blocked for Equity
margin orders only after your securities limit is completely exhausted.
For Eg., if you have placed Margin product order in Equity with margin
requirement of 15000 and your current cash and securities limit are
15000 and 10000 respectively. Then on placing this Equity margin order,
first your entire securities limit of 10000 will be blocked for margin
required and then the balance margin required of 5000 will be blocked
from the available Current Cash limit.

2. In case you are trading in F&O: If you have both Cash and Securities
limit then the total limit under F&O is fungible and the sum of cash and
securities limit is displayed as one Current limit which is available for F&O
trading. On placement of F&O orders the current limit is utilised without
bifurcating cash and securities limits.

.In what manner Equity limits will be released on margin product order
cancellation or on margin product position square off?

On cancellation of Equity margin product order(s) or on square off of

Equity margin product position(s), the margin amount will be first
released to the Cash Limit and then to the Securities Limit.

. How will my Equity Cash Limit be impacted if my margin position is

squared off at a loss and my Current Cash Limit is less than the loss
amount?

In case your Equity margin position is squared off at a loss and you do not
have sufficient cash limits to cover the loss then in such a case your
Equity Current Cash Limit will display a negative amount for the shortfall
loss that could not be covered through your current cash limits. For Eg. If
your margin position is squared off at a loss of 300/- and your Current
Cash limit is 100/- then the loss of 300/- will be blocked from the
Current Cash Limit and since the Current Cash limit can cover only 100/-
out of the loss of 300/- the shortfall loss of 200/- will be displayed as
negative Current Cash Limit for Equity.
.Why does the total securities limit arising out of securities deposited as
margin changes every day and sometimes even during the day ?

This is because it is dependent on the valuation of the securities

deposited as margin. The total securities limit arising out of securities
deposited as margin is arrived at as the summation of :
(Quantity of the stock deposited * Valuation Price of the stock ) * (1 -
Haircut% for the stock)

Generally, the closing price of a stock on the previous day is specified as

the valuation price. Hence, the limit arising out of securities deposited as
margin is recalculated every day when the new closing price for the
securities is received. Limit may also change on account of changes in
haircut% effected by ICICI Securities. The above changes are also carried
out during trading hours taking into consideration the latest current
market price of the securities. These may lead to either an increase or a
decrease in the limit arising from securities deposited as margin. ICICI
Securities also reserves the right to withdraw the limit arising from any
one or more of securities deposited as margin without assigning any
reason.

Where the limit arising from securities deposited as margin reduces on

account of the above, the margin available against the Equity/Future
positions is reduced from any one or more positions at the discretion of
ICICI Securities. This may result in some positions having less than the
minimum margins in case of Equity margin / futures positions leading to
square off of the positions/cancellation of the orders. The trigger price
for squaring off the option positions is also recalculated leading to earlier
squaring off of option positions/cancellation of option orders.

Therefore, where you have taken Equity Margin /F&O positions on the
basis of limits arising from securities deposited as margin, you are
advised to track the prices of such securities closely and ensure that
sufficient margin is always made available for the positions/orders.

.What happens to the securities deposited as margin?

The securities deposited will subsequently be pledged in favour of ICICI

Securities in due course.

When you make a deposit, a separate request is created to pledge each

security. The status of these requests can be tracked in the Request Book
sub-link under the Shares as Margin link in the F&O/Equity section. Till
such time that the pledge creation is actually initiated by ICICI Securities
on your behalf (i.e. the status changes from Requested to In Process
status), the requested quantity appears as Quantity Blocked in the
Deposited Securities page in the F&O/Equity section and as Blocked for
Margin in the Demat Allocation page in the Equity section.
In case you make a further deposit of the same security before the
pledge request is initiated on your behalf (i.e. is in Requested status),
only the pledge request quantity is increased instead of creating a new
pledge request.

Once the pledge creation is initiated on your behalf (i.e. the status in the
Request Book changes from Requested to In Process status), the same
appears in the Pledge Book sub-link under the Shares as Margin link in
the F&O/Equity section. You can view the pledge order no. allotted by the
Depository for each pledge creation here.

. Do I have to deposit securities as margin separately for Equity and F&O?

No. There is a common deposit of securities for margin for both Equity
and F&O. Once the securities are deposited successfully, securities limit is
created immediately and then this securities limit needs to be allocated
separately for trading in Equity and or F&O segments respectively.

.How do I withdraw securities deposited as Margin?

Securities deposited as margin are subsequently pledged to ICICI

Securities from your demat account. Therefore, once securities are
deposited as margin, there are two scenarios possible :
(a) they are just blocked for margin (appearing as Quantity Blocked in the
Deposited Securities link under the Shares as Margin page on the
F&O/Equity section and appearing as Blocked for Margin in the Demat
Allocation page on the Equity section)
(b) they are actually pledged in favour of ICICI Securities (appearing as
Quantity Pledged in the Deposited Securities link under the Shares as
Margin page on the F&O/Equity section)

In case of (a), you can just go to the Request Book sub-link under the
Shares as Margin link in the F&O/Equity section, select Reduce for the
particular pledge request and specify the quantity to be reduced.

In case of (b), you can go to the Deposited Securities page where a link
for Withdraw appears against the Quantity Pledged. You can click on the
link and specify the quantity to be withdrawn. In case, in the Request
Book sub-link under the Shares as Margin link in the F&O/Equity section,
there is already a Withdrawal request pending to be initiated (i.e. in
Requested status), you will not be permitted to place a fresh withdrawal
request; you can only increase the quantity to be withdrawn.

In either case, note that Withdrawal is: (i) permissible only if the
reduction in Securities limit arising out of reduction in the quantity
deposited as margin is not beyond the current Free Securities Allocation
for Equity, Free Securities Allocation for F&O and Net Withdrawal Balance
(ii)permitted only to the extent of quantity deposited has not already
been sold either by ICICI Securities or by yourself (appearing as Block for
Sale in the Deposited Securities page in the F&O/Equity section)

. Do I have to withdraw securities as margin separately from Equity and

F&O?

No. You just need to give a single withdraw request against the securities
deposited since there is a common deposit of securities for margin for
both Equity and F&O.

.Immediately on withdrawing securities as margin, by how much do limits

decrease ?

On withdrawing securities deposited as margin, total Securities limit

decreases immediately by the Value of deposit after Haircut indicated on
the Withdraw/ Reduce page. This is arrived at for each security as per the
following formula :
(Quantity of the stock being withdrawn* Valuation Price of the stock ) *
(1 - Haircut% for the stock)

.What happens to the securities withdrawn as margin?

Withdrawal may be done in two ways :

(a) Reduce out of a deposit request in the Request Book sub-link under
the Shares as Margin link in the F&O/Equity section for which a pledge
creation is yet to be initiated on your behalf i.e. in Requested status
(appearing as Quantity Blocked in the Deposited Securities page in the
F&O/Equity section and appearing as Blocked for Margin on the Demat
Allocation page of the Equity section)

(b) Withdrawal out of Pledged Quantity from the Deposited Securities

page (appearing as Quantity Pledged in the Deposited Securities page in
the F&O/Equity section)

In case of (a), the quantity withdrawn is immediately released and

reduced from both (i) Quantity Blocked in the Deposited Securities page
in the F&O/Equity section and (ii) Blocked for Margin in the Demat
Allocation page in the Equity section. As a result, the Total securities limit
also reduces.

In case of (b), the pledge(s) is/are closed to the extent of the withdrawal
request in due course. When you make a withdrawal, a separate request
is created to initiate the closure of the pledge(s). The status of this
request can be tracked in the Request Book sub-link under the Shares as
Margin link in the F&O/Equity section. However, the quantity withdrawn
is immediately reduced from Quantity Pledged in the Deposited
Securities page in the F&O/Equity section. As a result, the total securities
limit also reduces. Before the pledge closure is initiated (i.e. it is in
Requested status), you can add/reduce the quantity to be withdrawn by
accessing Add/Reduce link against the withdrawal request in the Request
Book sub-link under the Shares as Margin link in the F&O/Equity section.

Multiple pledge closures may have to be initiated in case separate pledge

order nos. by the Depository as a result of pledges being created at
various points of time earlier. Once pledge closure(s) is/are initiated (i.e.
the status changes from Requested to In Process status), the same
appear(s) in the Pledge Book sub-link under the Securities Deposited link
in the F&O/Equity section. Here, you can view the final status of the
pledge closure(s) initiated. Once, the pledge closure(s) are completed,
the quantity closed will reflect as free balance in your demat account.
The withdrawn securities will be available for sale or transfer on the next
day of the withdrawal.

.How does ICICI Securities go about selling my deposited securities in case

I do not make cash available for any settlement dues ?

ICICI Securities at its discretion would place a 'Spot' sell order at 'market'
in BSE for the required quantity of securities deposited as margin on T+2
day for shortfall in Equity and on T+1 day for shortfall in F&O. For the
shortfall in Equity and F&O, ICICI Securities can at its sole discretion spot
sell securities deposited as margin earlier than the above mentioned time
lines if there is a significant fall in the market value of securities given as
margin. Accordingly, you are required to bring in funds in your bank
account to meet settlement dues on a timely basis to avoid sopt sell of
securities.
The sale proceeds of this sale will be utilized to meet the pay-in shortfall
of Equity and F&O. If any excess amount is realized out of the sale
proceeds then it will be credited to your linked bank account and blocked
for trade as allocation in the following manner :

1. System will first see if there is any open position in F&O, if yes then the
entire excess amount will be blocked for trade under F&O.
2. If there is no open position under F&O system will check if there is
open margin position under Equity, if yes then the entire excess amount
will be blocked for trade under Equity.
3. If there is no open position in F&O and Equity then the entire excess
amount will remain credited in your bank account under your clear bank
balance. However, you can reduce the same if required. Normal 'spot'
brokerage is applicable for such sales. Such orders can be viewed in the
Equity Order book which are separately identifiable. The quantity so sold
will appear as 'Block for Sale' in the 'Deposited Securities' page in the
F&O/Equity section.

ICICI Securities would invoke the securities pledged in favour of ICICI

Securities to debit the shares from your demat account and meet the
obligations to pay-in the securities. On invocation, the 'Pledged Quantity'
in the 'Deposited Securities' page will reduce. Details of such invocations
would appear in the 'Pledge Book' sub-link under the 'Shares as Margin'
link in the F&O/Equity section.
However, ICICI Securities may not resort to selling the deposited shares
at its discretion including for reasons that the pay-in shortfall is
insignificant.

. Can I Spot sell the pledged shares if I have unexecuted Margin orders or
open positions in Equity segment?

No, you cannot spot sell the pledged shares if you have unexecuted
Margin orders or open positions (Broker as well as client mode including
positions open in Pending for Delivery page). However, you can square
off your pending for delivery positions and then carry out spot sell of your
pledged shares on the same day.

.For a given shortfall which is less than potential sale proceeds of the
entire securities deposited as margin, how does ICICI Securities
determine which of the deposited securities to sell and how much ?

To minimize the no. of sell orders, orders are first placed in respect of
stocks which have the highest value (arising from greater quantity or
greater prices). If the sale proceeds of the highest value stock does not
appear to be sufficient to meet the pay-in obligations, the next highest
value stock is taken up for sale.
For determining the quantity to be sold, the securities deposited as
margin are valued at current market price.

For determining the quantity to be sold, the target amount to be realized

is assumed to be higher by a sale margin applied by ICICI Securities at its
discretion to cover for possible price losses till the order reaches the
market and brokerage and statutory levies on such trades. The sale
margin is standard for all the scrips enabled for Shares as Margin.

The quantity determined is rounded off to the nearest higher integer.

For example,

Sale margin is specified as 22 %

Client has a shortfall of pay-in 3,00,000/-
Value of shares to be invoked will be 3, 66,000/-.

You have pledged the following shares :

Scrip Qty Closing price Value

BHEL 2000 150 300000
ACC 880 75 66000
Total 366000
.Can I also sell securities deposited as margin for eg. in case prices of the
securities are going up?

Yes, you can also sell securities deposited as margin.

Securities deposited as margin are subsequently pledged to ICICI

Securities from your demat account. Therefore, once securities are
deposited as margin, there are two scenarios possible :

(a) they are just blocked for margin (appearing as Quantity Blocked in the
Deposited Securities page in the F&O/Equity section and appearing as
Blocked for Margin in the Demat Balance page in the Equity section)
(b) they are actually pledged in favour of ICICI Securities (appearing as
Quantity Pledged in the Deposited Securities page in the F&O/Equity
section)

In case of (a), you have to first reduce the securities and then sell them.
In case of (b), a link for Sell appears against the Quantity Pledged. You
can click on the link and then place a spot sell order. These orders can
also be limit orders.

In case of spot sell, the sale proceeds will be first utilized to meet the pay-
in shortfall under Equity and F&O segments. If any excess amount is
realized out of the sale proceeds then it will be credited to your linked
bank account and blocked for trade as allocation in the manner specified
in the above answer. Please note that you cannot spot sell the pledged
shares if you have unexecuted Margin orders or open positions (Broker as
well as client mode including positions open in Pending for Delivery page)
under the Equity segment. Because of this, no reduction in securities limit
occurs on placing the order. The quantity ordered to be sold will appear
as Block for Sale.

Of course, the sale is permitted only to the extent of quantity deposited

that has not already been sold either by ICICI Securities or by yourself
(appearing as Block for Sale in the Deposited Securities page in the
F&O/Equity section). However, if there is pending Withdrawal request
out of the Pledged Quantity in a scrip, then that scrip is not permitted to
be sold.

Spot brokerage is applicable on these sales. Such orders can be viewed in

the Equity Order book ( and modified/cancelled like other Equity orders.
ICICI Securities would invoke the securities pledged in favour of ICICI
Securities to debit the shares from your demat account and meet the
obligations to pay-in the securities. On invocation, the Pledged Quantity
in the Deposited Securities page will reduce and also the securities limits
will be reduced to that extent. Details of such invocations would appear
in the Pledge Book sub-link under the Shares as Margin link in the
F&O/Equity section.

.Are there any separate charges for the above transactions?

No separate charges are levied by ICICI Securities (except for spot

brokerage and statutory levies as per applicable rates on the sale of
securities deposited as margin).

However, normal charges will be levied by ICICI Bank in respect of the

demat account for pledge creation, closure and invocation transactions.
All such transactions with reference nos. from the Depository are listed in
the Pledge Book sub-link under the Shares as Margin link in the
F&O/Equity section.

.Can I place withdrawal and spot sell requests simultaneously for the
same scrip on the same date?
On successful spot sell of shares ICICI Securities places an Invocation
request to debit the shares from your demat account. You will be able to
place withdrawal request and spot sell simultaneously for same scrip on
same day, provided the status of first request (which can be either
Withdrawal or Invocation) is not shown as Requested/In process in the
Request Book.

First request Status of request Second request Remarks

Withdrawal Requested/ In process Invocation System will not allow to
place second request
Invocation Requested/ In process Withdrawal System will not allow to
place second request
Withdrawal Completed / Rejected Invocation System will allow to place
second request
Invocation Completed / Rejected Withdrawal System will allow to place
second request

. Can I place multiple withdrawal requests against the same scrip on the
same date ?

Yes, you can place further withdrawal requests if the earlier request(s)do
not show the status as "In Process" .The system will not allow you to
place further withdrawal request(s) till the processing is completed.
First request Status of request Second request Remarks
Withdrawal In process Withdrawal System will not allow to place
second request
Withdrawal Requested/Completed/Rejected Withdrawal System will
allow to place second request

.Can I place multiple spot sell requests against same scrip on same date ?

Yes, you can place further spot sell requests of pledged shares if the
Invocation request placed by ICICI Securities for the earlier spot sell done
do not show the status as "In Process" .The system will not allow you to
place further spot sell till the processing is completed for earlier
Invocation request(s).

First request Status of request Second request Remarks

Invocation In process Invocation System will not allow to place second
request
Invocation Requested/Completed/Rejected Invocation System will
allow to place second request
FAQ (FNO MARGIN DEBIT /CREDIT PROCESS) FAQ ( FUTURES ) FAQ
(FUTURES ROLLOVER) FAQ (FUTURES PLUS) FAQ (OPTIONS) FAQ
(SHARES AS MARGIN)
FAQ(Global Indices) Specific FAQs on BSE

What forms of Margin are acceptable for taking futures and options
positions?

For futures and options positions, margin can be given in the following
forms:

Cash (by way of allocation of funds from your bank account)

Specified securities (by way of pledging securities allocated from your
Demat account in favour of ICICI Securities).

On what positions would the Margin be debited?

The Margins would be debited on Futures buy open positions, Futures

sell open positions and Options sell open positions.
Will any Margin get debited if I have taken the positions by pledging
shares in my Demat Account?

Yes, the margin will get debited in any of the following scenarios :

In case the total margin required on your total open positions is met by
the pledged shares alone, in such case no funds would be debited as
margin from your account even if there are idle funds lying in your linked
bank account.
In case the total margin required on your total open positions is partially
met by the pledged shares, in such case the balance required margin
amount at end of day shall get debited from your linked bank account.
In case there are no pledged shares in your account, then the entire
required margin amount at end of day shall get debited from your linked
bank account.

When will the Margin be debited from my linked bank account?

The Margin shall be debited from your linked bank account at end of the
day from your FNO allocation to the extent of limit utilized after adjusting
shares margin available.
When can the blocked margin will get released?

At End of the day.

Can I withdraw the margin during the day?

Yes. You can withdraw the margin amount between Monday to Friday -
till 07:00 pm.

How do I withdraw my Margin amount lying with ICICI Securities?

To withdraw the deposited margin amount with ICICI Securities, you need
to place the release margin request to the extent of free margin available
through the link available on the "I-Sec Margin Details" page on the FNO
section of I-Direct web site.

The same can be done under the following scenarios:

By pledging additional shares lying in your demat account up to the

extent of margin required.
By squaring off the open positions.
The released margin amount will immediately get credited to the FNO
allocation of your linked bank account.

In case if there is no margin withdrawal request placed in your account,

the excess free margin available with ICICI Securities at end of day would
be credited to your linked bank account on the same day.

To illustrate,

On T-1 day, Rs.100000 margin was required on your total open positions
(Rs.60000 as shares and Rs.40000 cash debited from your allocation and
kept in I-Sec Margin account) and supposing on T day eod, the new
margin requirement is Rs.90000. At the same time suppose you have
pledged 50000 as shares as margin on T day itself. In such case, system
would release (credit) 40000 cash in your bank allocation.

Where can I see the Margin amount debited from my savings account?

You can see the Margin amount on the FNO limit page under I-Sec Margin
amount in your trading account.
FAQ(Global Indices) FAQ ( FUTURES ) FAQ (FUTURES ROLLOVER)
FAQ (FUTURES PLUS) FAQ (OPTIONS) FAQ (SHARES AS MARGIN)
FAQ (FNO MARGIN DEBIT /CREDIT PROCESS) Specific FAQs on BSE

Where can I view futures contracts for trading in global indices?

Future contracts enabled for trading in global indices S&P 500 and DJIA as
underlying, will be displayed on the site when you select contracts either
through the 'Place order' link or the Stock list page on
www.icicidirect.com.

Will there be separarte market hours to trade in derivative contracts on

these global Indices?

No, you can trade in derivative contracts on these global Indices during
current Indian stock market trading hours only.

I am an NRI customer, will I also be able to trade in derivative contracts

on these global Indices?

No, as per regulations NRI customers are not allowed to trade in the
derivative contracts on these global Indices .
What is the tick size (minimum movement in price) or the price steps that
I can take while trading in derivative contracts on these global indices?

The tick size (minimum movement in price) or price steps would be Rs.
0.25 for S&P 500 futures and Rs. 2.5 in DJIA futures.

What is the Expiry Day for the derivative contracts traded in global
Indices?

For the derivative contracts traded with global Indices as the underlying,
the expiry day will be the third friday of the expiry month.

When will the derivative contracts expire in case the third Friday of the
month is a holiday in either USA or India?

In case the third Friday of the month is a holiday in either USA or India,
the contract shall expire on the preceding business day in both USA and
India in the expiry month.

What is the final settlement price for derivatives contract of global

indices?
All open positions at close of last day of trading shall be settled to the
Special Opening Quotation (SOQ) of the S&P 500 and DJIA Index or as
may be prescribed by exchange from time to time.
SOQs are calculated as per normal index calculation procedures except
that the values for the respective components are taken as the actual
opening values for each of the component equities on either the New
York Stock Exchange (NYSE) or Nasdaq.

Specific FAQs on BSE FAQ ( FUTURES ) FAQ (FUTURES ROLLOVER)

FAQ (FUTURES PLUS) FAQ (OPTIONS) FAQ (SHARES AS MARGIN)
FAQ (FNO MARGIN DEBIT /CREDIT PROCESS) FAQ(Global Indices)

Can I now trade in Futures and Options on BSE?

Yes you can now trade in Index Futures and Options on BSE. Only
contracts that meet the liquidity criteria will be enabled for trading at the
discretion of I-Sec.

Can I now trade in Index and Stock Futures and Options on BSE ?

You can trade only in Index Futures and Options on BSE. Currently, stock
futures and options will not be enabled for trading on BSE.
Can NRIs trade on BSE?

No. NRIs can continue to trade on NSE only.

Will I get reduced margin benefit on spread position taken on BSE?

You can take spread positions on BSE but you will not get any reduced
margin benefit for such spread positions taken on BSE. You can continue
to enjoy the reduced margin benefit on your spread positions taken on
NSE.

Will I get SPAN margining on BSE if I am mapped to SPAN margining on

NSE?

Currently, SPAN margin option is available only for NSE and even if you
are mapped to SPAN for NSE, non SPAN margining would be applicable to
your BSE F&O transactions. The normal non SPAN margin related FAQs
have been provided in the above section for Futures and Options.

FAQ ( FUTURES ) FAQ (FUTURES ROLLOVER) FAQ (FUTURES PLUS)

FAQ (OPTIONS) FAQ (SHARES AS MARGIN) FAQ (FNO MARGIN
DEBIT /CREDIT PROCESS)
FAQ(Global Indices) Specific FAQs on BSE