A. Initial Margin

Customer’s funds are put up as security for a guarantee of contract fulfillment at the time a futures market position is established.

B. Additional Margin

Margins imposed on both long and short sides over and above the other margins would be called additional margins.

C. Special Margin

The margins which are imposed only on one side, i.e. either on the long side or the short side would be called a special margin.

D. Tender Period Margin

Tender period margin is imposed at such percentages as defined in the product/ contract specification. Such margin is imposed on an incremental basis and applicable on both outstanding buy and sales side, which continues up to the expiry of the contract.

Tender Period margin is released for the position when Delivery Period Margin is imposed

E. Delivery Period Margin

When a contract enters the delivery period at the end of its life cycle, the delivery period margin is imposed as per contract specification. Such margin is applicable on all outstanding buy and sales side and continues up to the settlement of delivery obligation.

When a seller submits delivery documents alongwith surveyor’s certificate, his position is treated as settled and his delivery period margin to such extent is reduced. When a buyer pays money for the delivery allocated to him, his delivery period margin is reduced on such quantity for which he has paid the amount.

F. Extreme Loss Margin

Extreme Loss Margin (ELM) is levied to cover the expected loss in situations that lie outside the coverage of the SPAN-based initial margin.