Analyse real-time margin requirements before submitting trades

The Protrader margin analyser is an extremely useful tool to verify capital requirements

 

Client margins are defined by the various Equities, Commodities and Currencies Exchanges operating in India and charged by a broker to all their clients individually. They generally comprise of VaR, extreme loss and MTM margins for the cash segment, initial and exposure margins in futures and premium/ assignment margins in addition to initial and exposure margins in the case of options. Since volatility is a key element contributing to risk, margin requirements vary from one underlying to the other, across market segments. Understanding margins is very important as it allows traders to leverage or control large positions with minimum capital.

Scalpers, day, swing and algo traders, especially in the retail segment, typically make the most efficient use of margins allotted by the various Exchanges in the Indian financial markets. However, a number of traders fail to understand the significance of margins and in their zeal to execute trades, sometimes overlook minimum margin requirements on open positions, unforeseen drawdowns in the underlying and the leverage offered; which can change at short notice depending on market volatility, often resulting in positions being squared off, prematurely.


Source: Compositedge- Protrader terminal

 

The Protrader multi asset platform, specifically designed for the Indian markets, has an inbuilt margin analyser to monitor real-time margin requirements for individual and multiple scrips across market segments which are selected for execution. The analyser not only calculates margins in real-time, it also predicts changes in margins even before traders can open fresh orders.< /p>

For investors building portfolios; both short and long- term, comprising of multiple market segments, the margin analyser is extremely useful as it analyses all chosen instruments segment-wise and throws up the capital requirement to implement the strategy. Investors can then choose whether to tweak, go ahead with the strategy or bring in additional capital to meet margin requirements.< /p> For short-term traders who either combine multiple scrips or execute large orders as part of their trading strategy, the analyser is a very proficient tool in defining real-time margin requirements.
The tool also acts as a quick reference guide for newbies who wish to understand the nuances of margin calculation and manage risk in the event of extreme volatility in the markets.


Source: Compositedge- Protrader terminal

 

To open the panel, go to 'Account - Margin analyser' or right click within the watch-list panel and select ‘New- Margin analyser.’ Users can adjust the visibility of columns from the context menu and right-click on the column header to select columns to be displayed in the panel. Likewise, users can also go to the 'Margin analyser - Settings' in the same context menu to adjust the visibility of the rows and columns.

The retail platform also covers a vast array of features like manual scalping, real-time charts, matrix, time and sales, options master, in addition to the state of the art, algo trading platform. Launched by Compositedge, a leading discount broker in India, the platform is currently offered FREE of cost to all our clients and is open for individuals in the paper trading and real-time mode.
Sign-up for FREE to view the features of our trading platform and to paper trade or open your account to access Protrader in real-time markets.

Compositedge, incorporated in 1996, is a leading discount broker and a provider of algo trading solutions for retail customers in India. Headquartered in Bangalore, we provide the internationally acclaimed Protrader platform, which comprises of charts, scalper, matrix, grid, time & sales, market-depth and options master in addition to the state of the art algo trading platform. We combine discount broking and algo trading solutions to ensure all our retail clients experience the finest trading amenities at affordable costs.