Trading FAQs

What is a Member-Administrator terminal?

A Member Administrator terminal provides facility for:

  • Providing/Setting Turnover limits for different terminals
  • Allowing or disallowing different contracts/commodities to each terminal
  • Viewing all orders and trades, Net Positions for all terminals
  • Can modify trades on behalf of users
  • Can square off outstanding open positions o behalf of terminals
  • Can take Online Back Up of orders and trades for all terminals
  • Facility to view User List
  • Facility to set the password for his users

An Institutional Trading cum Clearing Member can login using its ITCM Id on MAT to set the Margin limit for the Trading Members registered under him. Steps to be followed for setting margin limits for the Trading Member:

  • Go to "Control" Menu.
  • Click on surveillance maintenance.
  • Select a TM id for which limit is to be set.
  • Write margin limit what we want to set for Trading Member, system will automatically set Mark to Market Loss limit.
  • Fill up remarks column.
  • Apply

How to set password of a user?

Trading Member can set a password for their TWS User Terminal from MAT » Tools menu » Reset Password option. Once password is reset by the Trading Member, the default password is communicated to the User and subsequently the User sets a new password.

Similarly a Clearing Member can set a password for the Trading Member Administrator Terminal and its TWS User Terminal from MAT » Tools menu » Reset Password option. Once password is reset by the Clearing Member, the default password is communicated to the TM/User and subsequently setting a new password on next login.

What is the turn over limit for a member?

Turnover limit is set at TWS User level and not at member level. Computation of turnover limit at user level is as follows:

Utilized Buy and sell turnover limit comprises of Traded Value + value of the pending orders.

How can we set turnover limits for Users?

The Turnover limits of the User Ids can be set through Member Administrator Terminal (MAT) provided by the Exchange in the following way:

Steps to be followed for setting turnover limits:

  • Go to "Control" Menu
  • Click on of surveillance maintenance.
  • Select user id for which limit is to be set.
  • Write Buy limit as well as sale limit.
  • Fill up remarks column.
  • Apply

Trading Members who are not able to set Turnover limit for their TWS User due to any reason can request the respective Clearing Member to do the same. In case a Clearing Member cannot do the same for any reason, either the Trading Member or the Clearing Member has to apply to Exchange in writing to set the limits at TWS User ID level.

How can a Trading Member view the total margins utilized at Member level?

Trading Member can view the details of his margin limit and margin utilized/Mark to Market loss through the Member Administrator Terminal using the following path:

  • Go to "Control" Menu
  • Click on Surveillance Watch.
  • View the Margin Utilized.
  • View MTM Loss.

In case of a Clearing Member Administrator Terminal, the Administrator can view the Total Margin Limit and Utilized Margin using following path:

What is surveillance watch?

The surveillance watch window is used to view the information regarding the exposure taken by a Trading Member vis-à-vis his deposits and Mark to Market loss limits permitted by his Clearing Member for all the contracts.

The surveillance watches window displays the following:

  • TM – Member ID
  • User – User ID
  • Margin
  • Margin v/s Limit %
  • MTM limit
  • MTM profit / loss
  • MTM v/s Limit %

The surveillance watch window for a Clearing Member Administrator Terminal is used to view the information regarding the exposure taken by a Trading Member vis-à-vis his deposits and Mark to Market loss limits.

The surveillance watches window displays the following

  • TM – Member ID
  • User – User ID
  • Margin
  • Margin v/s Limit %
  • MTM limit
  • MTM profit / loss
  • MTM v/s Limit %

How does a member come to know that his margin is getting utilized?

Trading and Clearing Members receive alerts on utilizing margin of 60%, 75% and 90% against their margin deposited with the Exchange or Margin allocated for a Trading Member by the respective Clearing Member. Member can also check the alert message through screen messages transmitted in Alert window or by following path: MAT » Control menu » Alert

How can a Trading Member allow or disallow different Contracts/ Commodities/ Currency to a TWS User terminal to trade?

From MAT, we can allow or disallow a User from trading in different contracts/commodities/currency using following path:
Go to Control Menu

  • Select the Product Basket option
  • Select the User Id
  • Select Instrument Name
  • Insert the Symbol
  • Click on Search

The list of contract available of that symbol will be displayed; select the contract which we want to disallow for trading. Click on Add button. Click on Update button. The system will ask for the confirmation, accordingly we can select the option.

Similarly the Clearing Member can allow /disallow to a Trading Member to trade in different Contracts/ Commodities/ Currency.

How can we modify the order?

The order can be modified by effecting changes in the order input parameters.
The order can be modified using following path:

  • Go to “Orders” Menu.
  • Click on Order Book and select view status as pending.
  • Select the pending order to be modified.
  • Select the option "Modify" or "Cancel".

How to modify the client code of an executed trade?

Client code can be modified using following path:

  • Go to " Trades" Menu.
  • Select the trade of which client code is to be modified.
  • Select the option "Modify Client Code".

What is the maximum allowable open position?

Maximum Allowable Open Position: In order to avoid building of huge open position in any commodity or Currency, the Exchange specifies the maximum open position limit in the respective contract specification of Exchange circulars.

What are the different terms in contract specifications?

  • Trading unit (Contract Size) - The Trading unit is the minimum quantity for a contract that can be bought or sold. E.g. If a Member is buying 1 lot of Gold, he has to buy minimum 32 Troy Ounce of GOLD given trading unit of 32 TOZ.
  • Quotation / Base value – It is the Quantity in Lot or Weights for which the prices are quoted for online trading on TWS. E. g. If the quotation or base value for Silver contract is given as 1 Troy Ounce and the price available for trading on TWS is 2290.50 US Cents for 1Troy Ounce of Silver.
  • Tick Size – Tick size is the minimum price difference between the bids and asks for a particular contract. The tick size is given in the contract specifications.
  • DPR – Daily Price Range i.e. circuit filter limit is the percentage of variation allowed in the price of a product in a day with respect to the previous day's close price for the day. Circuit filter provides the maximum range within which a contract can be traded during day. Circuit filters are different for different commodities. The orders which are in violation of such circuit filter are rejected by the system.
  • DDR - Due date rate is Final Settlement price for a particular Futures contract and the calculation process called computation of DDR.

What is a long and short position?

Long Position: Taking a long position is buying a contract.
Short Position: Taking a short position is selling a contract.

What does open Interest in the market mean?

The open interest is the number of contracts outstanding in the market (It can be called as outstanding position at any point of time.).

What are the different kinds of orders I can place in the trading system?

Order Types: There are two types of Orders.
Regular Order
Stop Loss Order

  • Regular Order: Regular orders can be placed in the system with Market price or Limit price

    As per the conditions they are of following types:

    Limit order: Specifying the price at (or better than) which the trade should be executed.

    Market order: Market order should be executed at whatever is the prevailing Market price at touchline on or after submission of such order.

    If there is no market price at that point of time, it takes the last traded price and remains in the system.
    If there is no Last Traded Price (LTP) (Last Traded Price) then system confirms the order with the same side or the counter side touchline and;
    if there are no orders at the touchline and no Last Traded Price (LTP), then system confirms the price as previous day's close price.
  • Stop loss Order: is one which is kept by the system in suspended or abeyance mode and is activated only on trigger of a price, as defined by the member.

    Orders can be classified based on the period as:

    End of the session (EOS): are available for execution during the current trading session until executed or cancelled. All EOS orders will get cancelled at the end of the day during which such orders were submitted.

    Day Order: are available for execution during the current trading until executed or cancelled. All DAY orders will get cancelled at the end of the day during which such orders were submitted

    Immediate or Cancel (IOC): is an order that will get cancelled if not executed on submission of such an order. Such orders will not remain in the order book.

The open interest is the number of contracts outstanding in the market (It can be called as outstanding position at any point of time.)