Who Pays Remaining Margin in Futures Contract
Beginners Guide - Who Pays Remaining Margin in Futures Contract in NEW TO TRADING & INVESTMENTS? - Email Query from Sathiya One basic question in intraday trading. Copying my earlier example, Sell 1lot NIFTY Futures contract for ...
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Who Pays Remaining Margin in Futures Contract

  1. Who Pays Remaining Margin in Futures Contract

    Email Query from Sathiya
    One basic question in intraday trading. Copying my earlier example,

    Sell 1lot NIFTY Futures contract for say 7850 is 7850x25 = Rs.196250 but we pay only the margin amount which is Rs.7000. Need to know who is paying this balance Rs.189250? Whether this cash is paid by broker(zerodha) to exchange or there is no actual payment made for this trade. In case if broker is paying on our behalf it is something like we borrow this money from broker right? In that case is there any charges or interest brokers charge to us for the borrowed money? Please clarify.








  2. nobody pays the remaining amount ... In Futures / Options ... you are not trading actual shares and there is no need to pay full amount ...

    Its a contract between 2 people ... a Buyer and a Seller ... In case of Futures, margin is blocked for both speculators, as unlimited loss is possible for both ...

    Buyers profit is sellers loss ... Sellers profit is buyers loss ... I hope this answers your question

    There is no additional charges apart from Brokerage and taxes ...

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