MarginPlus

sagar_gupta_sanjay · #1 26th September 2007, 04:51 PM

Dear All, Please reply I am new to Forum family
Hi

I could not understand how MarginPlus works actually.

today I placed order to understand the MaginPlus, where I ordered TCS equitiies.
1) Once the order got executed, in Trade book, I could not see my
Margin Plus positions, to square up.
2) It seems that it sold my equities on lesser price, whereas today closing is much higher that it got sold in the day.

Anyone, who can please explain me the working and why I could not see my margin positions.

Thanks

Sanjay

nitinku5021a · #2 26th September 2007, 06:47 PM

Quote:

Originally Posted by sagar_gupta_sanjay

Dear All, Please reply I am new to Forum family
Hi

I could not understand how MarginPlus works actually.

today I placed order to understand the MaginPlus, where I ordered TCS equitiies.
1) Once the order got executed, in Trade book, I could not see my
Margin Plus positions, to square up.
2) It seems that it sold my equities on lesser price, whereas today closing is much higher that it got sold in the day.

Anyone, who can please explain me the working and why I could not see my margin positions.

Thanks

Sanjay

Well in simple term..margin plus is instrument in which ur broker gives u some more credit to purchase the share for INTRADAY. That means, if u have bought it today then u have to sell it before the settlement time ( currently its 3:45 @ ICICI due to Sun outage ) else bank will sell it at the whtever price it quotes at the settlement time.

Now coming to ur 1st Q.
1) just see near by "Trade Book" there will be "Margin Plus Position". there u can see it.

2) ofcourse closing price may be diff from the price they have sold it @ settlement time.

Hope I cud help u little.

Nitin

sagar_gupta_sanjay · #3 26th September 2007, 07:00 PM

Dear Buddy

Thanks for replying my msg. Atleast you replied it.

I had gone to MarginPlus positions, but there it was not showing and
I would appreciate if you can explain me StopLoss Trigger Price and Limit price funda.

I hope I am not too demanding.

Regards

Sanjay

sagar_gupta_sanjay · #4 26th September 2007, 07:02 PM

Dear Nitin

In continuation to my reply, to inform you that settlement was done much before 3.45pm.

Thanks, once again.

Sanjay

nitinku5021a · #5 26th September 2007, 07:14 PM

as the margin plus position has been squared off , so u wont be able to see it now. once u purchase the stock then u can see it there.
and this is from ICICI, the timing mentioned there is normal settlement timings. Add 30 mins more bcz of time change due to sun outage.

"The automated End of settlement square off process would be run by ICICI Securities any time between 2.45 pm to 3.15 pm.
The above process could be delayed or advanced without prior notice to the customers, in case of any exceptional circumstances "

Limit Price: The price u want to sell the stock. suppose the current price is 100/- and u want to sell it once it reaches 110/- then u cant track all the way and sell it once it hit ur price....this can be done automatic if u sell it by giving limit price [ do select the Limit button ].

Stop Loss trigger price: it actually gives u a way to sell at a lower price once it crosses ur stop loss price. [ Now dont ask why u need to sell it at a lower price [

] ...just a hint [>>>It cuts ur losses<<< ] and do search the forum for answer.

Happy trading

Nitin

sagar_gupta_sanjay · #6 26th September 2007, 07:21 PM

Dear Nitin

Thanks Alot !
Regards,
Sanjay

visagar · #7 26th September 2007, 11:43 PM

let me guess. i think you might have placed the stop loss price very close to the market price and the stoploss got triggered immediately after the execution of the opening order because of the volatility of the price. anyway , icicidirect is behaving crazily these days. anything can happen.

james · #8 27th September 2007, 11:01 AM

That is true.

You have to place a cover sell order when placing and buy order in marginplus segment. Best part is that you cannot cancel the cover order; only modify it, if ICICI site is not down.

For me past few days have been a horrifying with ICICIDirect. It is not allowing logins in early hours and misplacing all the market orders. If you place a BSE market order, it remains in "ordered" state forever.

sagar_gupta_sanjay · #9 27th September 2007, 11:10 AM

Thanks James !

Could you please give me one example for buying in Margin plus, so that I can completely understand how it works.

Regards,
Sanjay

james · #10 27th September 2007, 11:21 AM

Hi Sanjay

To be honest i have read the icici help document may times for this. Got very confused and this is what i could interpret:

Suppose you buy ABB for 1300 in marginplus:
1. it has to be a market order
2. u have to specify cover sell order
3. In cover sell order you have to give a stop loss trigger price. This price has to be less than the limit price.

in this case u may specify a SLTP price of 1295, which will trigger a sell at a limit price of 1290.

There is one more condition here, which deals with last days closing price for that share. But i do not remember it clearly.

4. You cannot cancel the cover order, only change it.

Cover order will only reduce the huge loss not prevent you from it.

Personally it is very complex for me and I avoid using it.