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 it. A TM's open position in turn includes its proprietary open position and clients' open positions.

• Proprietary / Clients Open Position
  
  When 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 'OWN / CLIENT' 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.
  
  Example
  For a CM – ABC Ltd, with TMs clearing through him – UVW Ltd and XYZ Ltd
  
  

  Proprietary Position Client 1 Client 2 Net Member position   Contract TM Security Buy Sell Net Buy Sell Net Buy Sell Net UVW Ltd USDINR December contract 6 4 2 5 3 2 6 4 2 Long 6 XYZ Ltd USDINR December contract 6 5 (1) 6 5 1 2 3 (1) Long 1 Short 2

  
  
  ABC Ltd.'s open position for USDINR December contract is:
  
  

  Member Long Position Short Position UVW Ltd 6 0 XYZ Ltd 1 2 Total for ABC Ltd 7 2