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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 PositionClient 1Client 2Net Member
TMSecurityBuy QtySell QtyNet QtyBuy QtySell QtyNet QtyBuy QtySell QtyNet Qty
ABCNifty 50 January contract400020002000300010002000400020002000Long 6000
PQRNifty 50 January contract20003000(1000)20001000100010002000(1000)Long 1000
Short 2000

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

MemberLong PositionShort Position
ABC60000
PQR10002000
Total for XYZ70002000