Clearing Mechanism

A Clearing Member's open position is arrived by aggregating the open position of all the Trading Members (TM) and all custodial participants clearing through him. A TM's open position in turn includes his proprietary open position and clients’ open positions.

  • Proprietary / Clients’ Open Position
    While entering orders on the trading system, TMs are required to identify them as proprietary (if they are own trades) or client (if entered on behalf of clients) through 'Pro / Cli' indicator provided in the order entry screen. The proprietary positions are calculated on net basis (buy - sell) and client positions are calculated on gross of net positions of each client i.e., a buy trade is off-set by a sell trade and a sell trade is off-set by a buy trade.
  • Open Position
    Open position for the proprietary positions are calculated separately from client position.

For example,
For a CM - XYZ, with TMs clearing through him - ABC and PQR

    Proprietary Position Client 1 Client 2 Net Member
TM Security Buy Qty Sell Qty Net Qty Buy Qty Sell Qty Net Qty Buy Qty Sell Qty Net Qty
ABC Nifty 50 January contract 4000 2000 2000 3000 1000 2000 4000 2000 2000 Long 6000
PQR Nifty 50 January contract 2000 3000 (1000) 2000 1000 1000 1000 2000 (1000) Long 1000
Short 2000

XYZ’s open position for Nifty 50 January contract is :

Member Long Position Short Position
ABC 6000 0
PQR 1000 2000
Total for XYZ 7000 2000

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Did You Know

The higher the Percent of Deliverable Quantity to Traded Quantity the better - it indicates that most buyers are expecting the price of the share to go up.

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