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    Commodity Margin And Settlement

    Do I need cash if I am using Shares as Margin (SAM) for my commodity position?

    Yes, While you can use pledged shares for up to 100% of your initial margin, you still need liquid cash in your commodity allocation for:

    MTM (Mark-to-Market) Losses: Daily losses on futures must be settled in cash.

    Option Premiums: When buying options, the net premium must be available as cash before the next trading day.

    *Risk Note: If cash allocation is not available, ICICI Direct may sell your pledged shares to meet the obligation, which could lead to margin shortfalls and automatic square-offs of your other trades.

    Funds are available in my bank account, but I still got a margin call. Why? Why was my position auto-squared off by the system? Where can I check the margin shortfall report for positions that were force-squared off by system? What does "squaring off" a position mean? Can I use my shares to trade in commodities? What is ICICI Securities' Peak Margin? What is the total margin requirement for commodity futures? Can my margin requirements change after I’ve entered a trade? Are margins for futures and options combined? How can I see exactly how much margin I will be charged? Why did my margin requirement suddenly increase? How are commodity contracts settled at expiry? Can I take physical delivery of commodities like Gold or Copper? What happens if I don't square off my position before expiry? What is "Inter-adjustment" or "Netting of Funds"? Why wasn't the full amount from my closed commodity trade returned to my bank? What is EOD MTM (End of Day Mark-to-Market)? How do I check for a margin shortfall on an open commodity position? How can I add more margin? What is "Available Margin"? What are "Initial Margin" and "Minimum Margin"? Can commodity prices go negative?