What is Margin Amount in Trading?

What is Margin Amount in Trading?

Margin amount is the minimum amount of funds or collateral you need to place a trade in Futures or to short Options. It acts as a security deposit and enables you to take positions much larger than your upfront capital by using leverage.

What does margin mean in F&O trading?

  • When you trade in the Futures and Options (F&O) segments, you're not required to pay the full transaction value.
  • Instead, FYERS requires you to deposit a margin amount, which is a fixed percentage of the total trade value. This varies depending on:
    • The instrument you're trading (Index, Stock Futures, etc.)
    • The type of position (Intraday or Carry Forward)
    • Current volatility and exchange-mandated risk parameters

Brokerages like FYERS provide leverage on this margin amount as per internal risk policies and SEBI rules.

Check margin requirements

You can easily estimate how much margin is needed using our Margin Calculator.

What if...

ScenarioWhat to do
You're not sure about margin required for a tradeUse the Margin Calculator to check before placing the order
You have insufficient marginAdd more funds or reduce your position size
You want to understand exposure vs. marginThe calculator shows both margin required and maximum exposure allowed

Last updated: 18 Jun 2025

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