Bank Nifty Tips: Margin Money Required for trading

bank nifty tipsEvery trader has requirement of marginal money to start in derivatives. Here is a simple calculation of margin money for Bank Nifty Future contract.
The lot size of Bank Nifty Future contract is 40 units for which an initial margin of approximately 7.6% of the total contract value is required for trading. The current contract value is (40*18000) i.e We have to deposit an initial margin of approx Rs 55000. So if you want to start trading in Bank Nifty Future you have to deposit approx Rs 55000 cash to their broker. By cash here means a clear credit balance in the ledger of trading account with the broker.  To meet out the initial margins of the future contract, you can use your holding stocks as a collateral.