NISM Certifications · NISM-Series-VIII: Equity Derivatives · Trading Mechanism
Nifty futures lot size is 75 and the Nifty is at 24,000. If the initial margin is 10% of contract value, what is the margin required to buy 2 lots?
The margin required is Rs 3,60,000. Two lots of 75 units at an index level of 24,000 give a contract value of Rs 36,00,000, and 10% of that is Rs 3,60,000.
- ARs 1,80,000
- BRs 3,60,000Correct
- CRs 18,000
- DRs 2,40,000
Explanation
Contract value = 24,000 x 75 x 2 = Rs 36,00,000. 10% of this = Rs 3,60,000. Rs 1,80,000 uses only one lot, and Rs 18,000 is a decimal slip.
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