Formula for calculating Margin Requirement for Cover Order

sudipto
Is there a formula or API I can use to calculate the required margin for a Cover Order on NFO, CDS and MCX exchanges? I saw the margin calculator on your site, but I can't infer the formula from that tool, and I can't use that tool in my automated trading.
  • sudipto
    For NFO Option - sell, the formula is given as

    margin = (strike_price + price) * quantity * 0.25

    For Strike_price = 12000, price=1000, quantity=75 from the above formula one gets a value of Rs. 2,43,750
    The same values entered in your formula calculator on your site gives Rs. 24,375
    i.e. exactly one tenth the value. What am I missing here?
  • sujith
    You can follow up here.
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