How Much Margins Leverage Does Angel One Provide
Angel One provides margins or leverage for trading in both equity and derivatives (F&O) segments.
| Segment | Trading Margin |
| Equity Delivery | 1x (100% of trade value) |
| Equity Intraday | 5x (Up to 20% of trade value) |
| Equity F&O | 1x (100% of NRML margin (Span + Exposure)) |
| Currency F&O | 1x (100% of NRML margin (Span + Exposure)) |
| Commodity F&O | 1x (100% of NRML margin (Span + Exposure)) |
Margins in Equity Segment
The margin requirements vary based on the segment, the type of security being traded, and market conditions. Here’s an explanation of the margins provided by Angel One:
Daily Margin for Equity Shares:
Comprises Value at Risk (VaR) Margin and Extreme Loss Margin (ELM).
VaR estimates potential losses given normal market conditions, while ELM covers losses due to erratic market movements.
VaR Calculation:
Securities are categorised into Group-1, Group-2, and Group-3 based on trading frequency and liquidity.
VaR and ELM are calculated and circulated by exchanges to brokers. Its formula is as follows.
| Category | Number of days traded in the previous 6 months | Impact Cost(measure of liquidity) |
| Group-1 | >80% of trading days | <1% |
| Group-2 | >80% of trading days | >1% |
| Group-3 | All the other shares | NA |
If (VaR Margin+ ELM)= X%, the margin requirement is at X% or 20%, whichever is higher.
Margin Requirement:
Angel One considers the margin at the higher value of (VaR+ELM) or 20% as per exchange rules.
Margins in Derivatives (F&O) Segment:
Total Margin in F&O:
Comprises SPAN Margin (Standardized Portfolio Analysis of Risk) and Exposure Margin.
SPAN Margin is determined by simulating 16 scenarios based on the underlying asset’s value.
Exposure Margin acts as additional protection against market swings.
Margin Calculator:
Angel One offers an F&O margin calculator for determining the required margins for different F&O scrips.
Mark to Market (MTM) Margin:
MTM Margin:
Calculated on open positions by comparing transaction price with the day’s closing price.
Notional losses need to be covered the next trading day (T+1).
Risk Management:
If MTM loss on intraday positions reaches 80% of available funds, Angel One’s Risk Management System (RMS) may close open positions.
Margin Collection:
Angel One collects margins upfront as per regulatory guidelines to mitigate potential risks arising from adverse price movements.
Margins provided by Angel One differ based on regulatory requirements, market conditions, and the type of securities traded.
Understanding margin requirements and using tools like the F&O margin calculator can help traders make informed investment decisions.