About Margin Calculator
Using the equity margin calculator, you can enter your equity stock position and determine your required margin.
How do I use the Margin Calculator?
- One record at a time while entering.
- The "Add" button must be clicked to add more rows.
- Click the matching "check box" and the "Del" button to remove the row from the table.
- Click the appropriate "check box" and the "Modify" button to edit a record.
- To calculate the margin for all records entered, click "Compute."
- The most recent risk parameter is used to calculate the margin.
Value at Risk (VaR) Margin
- For VaR margin, all securities are divided into three classes.
- The exponentially weighted moving average methodology calculates scrip-wise daily volatility for the stocks listed in Group I, which is then applied to daily returns. The daily VaR determined for each scrip is 3.5 times the volatility and is subject to a minimum of 7.5 per cent.
- The VaR margin is scaled up by root 3 and is higher than scrip VaR (3.5 sigmas) or three times the index VaR for the stocks included in Group II.
- The VaR margin is scaled up by root 3 and equal to five times the index VaR for securities listed in Group III.
- The higher the daily Index VaR based on CNX NIFTY or BSE SENSEX, subject to a minimum of 5%, the index VaR used for this purpose.
- On occasion, NSE Clearing may impose security-specific margins.
The VaR margin rate computed as previously described is assessed on the respective clients' net outstanding position (buy value minus sell value) of the individual securities across all open settlements. Once the member's net role at the client level has been determined, it is grossed across all clients, taking proprietary positions into account to determine the gross open status. Positions across additional payments are not netted off.
The net position of a member in security is taken to be 2000; for instance, if client A has a buy position of 1000 in a securities and client B has a sell position of 1000 in the same security. Clients A and B's purchase and sell positions in the same security are not netted. It is added to determine the member's open role to calculate the margin.
The VaR margin is collected upfront by adjusting the member's total liquid assets at the trade moment.
Following crystallisation of the final obligations on T+1 day, the VaR margin so collected is released upon pay-in of the settlement completion or upon individual completion of total commitments of money and securities by the respective member/custodians.
Uses of a margin calculator
Using the item's cost and revenue, or selling price, determine the gross margin percentage, markup percentage, and gross profit of a sale. See the Profit Margin Calculator for information on net profit, net profit margin, and profit %.
* Sales Price + Revenue
Calculations and Formulas for Margin
The gross profit P is determined by subtracting the product's production cost C from its selling price or revenue R. P = R - C
The markup percentage M is calculated by dividing the profit P by the cost C to produce the good.
(R - C) / C = M = P / C
The profit P is divided by the selling price or revenue to determine the gross margin percentage G. R = (R - C) / R. G = P / R