Alice Blue Margin (Part 2) – Equity, F&O, Equity Futures, Commodity & Currency Margin List

Alice Blue Margin Facility

Alice Blue margin facility is available for all its traders provided they can fulfill the norms set by SEBI. Alice Blue also has started providing the Single Margin Facility for ease of trading from December 23rd, 2019.

With the single margin facility, one does not have to trade for commodities and equities separately. The earlier process entailed that two separate regulators oversaw proceedings for the two separate markets.

However, in September 2017, SEBI became the single regulator for both.

A single Margin Facility saves a lot of time and energy on the part of the trader. It is always easier to trade in a single facility rather than divide time into two separate ones.

Two separate facilities would have meant wastage of working capital, inefficient usage of funds and an extremely time-consuming affair. All amounting to diminishing returns.

To facilitate easy movement from the dual margin system to the single, Alice Blue has simplified procedures for traders to move from ABCPL to ABFSPL.

This will help streamline the trading facility provided to the traders.

Alice Blue Margin
Alice Blue Margin

Alice Blue Equity Margin

The Alice Blue Equity margin can be calculated with the help of the Alice Blue Equity Calculator. The heads of the Equity calculator are:

The Serial Number, The Scrips, MIS Multiplier, CNC Multiplier and the calculate option.

The MIS Multiplier and the CNC Multiplier will give you the amount of leverage.

If observed closely, the range of leverage provided for the MIS section is from 1x to 8x. This is strictly for intraday trade.

For the Cash and Carry (CNC) section, the range is from 1x to 2x.

A quick thought about how leverage works.

Take is as a loan from the broker. You want to trade a larger position but do not have the cash to do so.

Alice Blue will provide you with a set percentage of the fund, by which you can trade a larger position and amplify the returns.

Read Also: How To Open Alice Blue Online Demat Account – Step By Step Process Explain

Alice Blue F&O Margin

The Alice F&O margin is best provided by the Alice Blue calculator again. However, there is an important bit of information one needs to know about the F&O calculation.

While dealing with Future and Options, the concept of initial margin is extremely important to know.

The initial margin is also called the SPAN margin. This is the margin that is calculated based on the risk faced by each stock. A software called the SPAN calculates it.

The next margin that is added is the exposure margin also known as the Extreme Loss Margin or ELM. This calculates the exposure each stock faces. This margin is added over and above the SPAN margin.

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So how does the Alice Blue margin calculator help the trader?

You can select futures, option or a mix of both the contracts. Depending on the margin availability, the trader can add and remove contacts.

So what all does the calculator tell us:

The segment that Futures and Options, The kind of Contract (stocks and indices), The Lot Size (usually Single lot size)

If Alice Blue options are what you want to trade in, select the option type which has to be either Call or Put and of course, the strike price.

All the fields are mandatory.

The SPAN margin is the combination of Alice Blue Portfolio SPAN Margin, the Premium Margin and Margin related to the spread charges.

The Exposure margin, which we had discussed a bit earlier, is the combination of the Spread Exposure Margin which includes both Normal and Additional and Non-Spread Exposure Margin.

The total margin is, therefore, the addition of the Initial Margin and the exposure margin.  

Read Also: Alice Blue Login: Get login Info For Ant Mobile App, Ant Web, Ant Desk And Back Office  

Alice Blue Equity Future Margin

The Equity Future charged by Alice Blue is 0.01% or INR 20, whichever is lower.

Alice Blue Margins are broken into two distinct parts, depending on the plan, the trader opts for.

For the Alice Blue traditional plan: Equity Margin is 20x for Intraday, 20x for BO, no margin available for CO and 3x for Cash and Carry Delivery

For the Freedom 20 plan: Equity Margin is 10x for Intraday, 20x for BO, no margin is available for Co AND 3X for Cash and Carry Delivery.

The Alice Blue Equity Future Margin is best calculated through the Alice Blue calculator again.

Alice Blue Equity Future Margin
Alice Blue Equity Future Margin

Here we have the Future Contracts, the expiry of the Futures Contracts, The Lot size of the Future Contracts, The Price, The Normal Order Margin (which is the Exchange regulated margin), MIS Margin (Margin Intraday Square Off-price), the Cover Order Margin (the Market Order with a stop loss) and the Bracket Order (an order which helps to limit losses).

For a layman, the calculator is an extremely user-friendly tool to calculate the margins.

Alice Blue Commodity Margin

The Alice Blue Commodity margin, similar to the Equity Future Margin is broken into plans:

For the Alice Blue traditional plan: Commodity Margin is 10x for Intraday, 20x for BO, 20x available for CO and 1x for Cash and Carry Delivery

For the Freedom 20 plan: Commodity Margin is 10x for Intraday, 20x for BO, 20x is available for CO and 1X for Cash and Carry Delivery.

The Alice Blue Margin Calculator for Commodities conveys the same information similar to the Equity Future.

Alice Blue Commodity Margin
Alice Blue Commodity Margin

Let us quickly look at an example screenshot to make the matter more clear:

Alice Blue Commodity Margin Screenshot 1
Alice Blue Commodity Margin Screenshot 1
Alice Blue Commodity Margin Screenshot 2
Alice Blue Commodity Margin Screenshot 2

The scrip pertains to Crude Oil whose unit of a lot is calculated in barrels (BBL). The price pertains to the cost of 1 Barrel.

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The ensuing information will give you the NRML price, the MIS margin price, the Cover Order and the Bracket Order.

Read Also: Alice Blue Ant Mobile App Review – Features, Login, Signup, Pros and Cons

Alice Blue Currency Margin

Alice Blue margin for currency is calculated in the following currencies:

  • Euro (EUR)
  • Great Britain Pounds (GBP)
  • Japanese Yen (JPY)
  • United States Dollar (USD)

The heads which are involved while calculating Alice Blue margin for currency:

Alice Blue Margin
Alice Blue Currency Margin

The Alice Blue margin about Currency is broken into two parts:

Currency Future: 10x for Intraday trade, 20x for Bracket Order, 20x for Cover Order and 1x for Cash and Carry-Delivery (CNC).

Currency Options: Intraday is divided into Buy: 3x and Sell: 10x, No Margin available for Bracket Order, No Margin available for Cover Order and 1x for Cash and Carry-Delivery (CNC).

One of the features of trading with Alice Blue for currency is its low initial deposit and the wide leveraging options that it provides.

Open Alice Blue Demat Account
Open Alice Blue Demat Account

Conclusion:

Alice Blue margin options are some of the sought after trading highlights in the world of the stock market. This review was for those who wish to make a beginning and even for those wanting to change their brokers.

However, the stock market despite being a rewarding place does have its risks. The activity of trading comes with inherent obstacles and there are mechanisms to minimise those. Creating a stop loss to lessen the burden of loss is one of the ways to go forward.

Alice Blue Margin facilities are backed with the latest tech-based tools. The calculator is a handy online device to calculate returns and margins.

Alice Blue Margin FAQs

Q1: What is the Alice Blue Single Margin Facility?

The Alice Blue Single Margin Facility is provided to traders who fulfil the requirements as set by SEBI. This facility allows the investor to trade through a single regulator, in this case, SEBI.

The market earlier was divided into two regulators. Equity and Currency were being regulated by SEBI while the Commodity market was being regulated by the Forward Market Commission (FMC).

This created a lot of consternation amongst the trading community, who now had to deal with two disparate regulators, leading to wastage of time and capital.

The Finance Ministry, Government of India, proposed SEBI as the single regulator, in 2015. In 2017, SEBI proposed Single Margin Trading.

Alice Blue started Single Margin Trading (SMT) from 2019.

This has led to ease of doing business, greater utilisation of capital and greater availability of opportunity.

Q2: What are trading heads whose Margin can be calculated through the Alice Blue Margin calculator?

The Alice Blue Margin online calculator is a handy tool. It provides information about the following margins:

  • Commodity
  • Equity Features
  • Equity
  • Currency
  • BO & CO
  • Options

Q3: What is the Alice Blue Commodity Margin?

This is traded through the Commodity exchange or the MCX. The Alice Blue Commodity Margin tells us about the leverage that is provided while trading for commodities.

It is broken up into two parts, each about the plans that Alice Blue Offers: Traditional and Freedom20 (F20).

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Q4: What is the Alice Blue Currency Margin?

The Alice Blue Currency Margin is broken into two parts:

Currency Future: 10x for Intraday trade, 20x for Bracket Order, 20x for Cover Order and 1x for Cash and Carry-Delivery (CNC).

Currency Options: Intraday is divided into Buy: 3x and Sell: 10x, No Margin available for Bracket Order, No Margin available for Cover Order and 1x for Cash and Carry-Delivery (CNC).

Q5: How is the total margin calculated?

It is the combination of SPAN margin and Exposure or Extreme Loss Margin (ELM). Hence, Total Margin = SPAN Margin + Exposure Margin

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