Knowledge Base

Two of the most common questions before starting F&O trading are how much money you need to get started and whether your broker provides any additional leverage. Here is a clear answer to both.

Is there a minimum balance required?

Samco does not have a fixed minimum balance requirement to start F&O trading. However, you need to have enough funds in your account to cover the margin required for the contract you want to trade.

Every F&O contract requires a minimum margin  set by the exchange to enter a position. This margin varies depending on the stock or index, the contract size, and current market volatility. For example, a single lot of Nifty futures typically requires a margin of around ₹1 lakh, while stock futures margins can vary widely depending on the stock.

You can check the exact margin required for any contract on the Samco app or website before placing your order.

Does Samco provide leverage in F&O?

F&O trading is inherently leveraged you only need to pay a fraction of the total contract value as margin. This leverage is built into the product itself and is determined by the exchange, not the broker.

As per SEBI regulations, brokers are not permitted to offer additional leverage over and above what the exchange prescribes for F&O contracts. Samco follows these regulations and does not offer any extra leverage beyond the exchange-mandated margins.

What does this mean for you?

The margin you pay gives you exposure to the full contract value. For example, if a Nifty futures contract is worth ₹11 lakh and the margin required is ₹1 lakh, you are effectively controlling ₹11 lakh worth of exposure with ₹1 lakh. This amplifies both your profits and your losses, so it is important to size your positions carefully.