A NSE circular today has announced additional exposure margins on select securities under Market-Wide Position Limits (MWPL), effective February 28, 2025, right after the February contract expiry. This is aimed at reducing risk in heavily traded stocks where a few participants hold a significant portion of open interest.
Key Highlights from the Circular:
Additional Margin Criteria:
- A 15% additional exposure margin will be applied to stocks where the top 10 clients hold more than 20% of MWPL.
- If a stock already has an additional surveillance margin, the higher margin of the two will apply.
Stocks Affected:
As per the circular, the following stocks will have an additional exposure margin applied:
- Hindustan Copper Limited (HINDCOPPER)
- Granules India Limited (GRANULES)
Impact on Traders:
- Higher margin requirements mean traders need to allocate more capital when trading these stocks.
- Leverage might be affected, reducing the ability to take large positions.
- Potential lower liquidity as some traders may reduce participation due to increased costs.
What You Should Do:
- If you hold positions in these stocks, check your margin requirements before February 28, 2025.
- Review your trading strategy as increased margins may impact short-term trades.
You can read the full circular on the NSE website.