Hello,
Can someone tell me why the following happens:
Say I have 70,000 In my account.
MONDAY:
I buy 1,300 Shares of X @ Rs. 100 a share, for which sharekhan gives 50% Margin, ie. use 65,000
Hence: Balance is now 5,000 Cr
TUESDAY:
NO Trades, Same Balance
Balance is still 5,000 Cr
WEDNESDAY:
Trading Session: No Trades, Same Balance
Evening: They Bill the whole money for the shares I bought, Hence the remaining 65000 is billed at this point
Balance is now 60,000 Dr (Ie. -60,000)
THURSDAY:
During The Trading Session:
AT 11 AM ON THURSDAY:
Suppose I want to sell a part of my holding in company X, say I sell 1,000 Shares (Assume same rate of 100 for the sake of simplicity)
Hence I sell shares worth 1,00,000
Balance at 11 AM After Selling: 40000 Cr
AT 1 PM ON THURSDAY:
Suppose I want to re-buy some of my holding In the same company X, Say I want to buy 300 Shares, again at Rs. 100
Now, if you notice, sharekhan will not give you 30% margin on those shares, it will deduce the full amount from your balance, so for 400 Shares at Rs. 100 a share, it deducts 40,000 from your account, and not 12,000. Means I can only re-buy a maximum of 400 Shares (400*100 = 40000) even though I have sold 1000.
Can someone explain to me why this happens? Why am I not allowed to buy using margin again?
Can someone tell me why the following happens:
Say I have 70,000 In my account.
MONDAY:
I buy 1,300 Shares of X @ Rs. 100 a share, for which sharekhan gives 50% Margin, ie. use 65,000
Hence: Balance is now 5,000 Cr
TUESDAY:
NO Trades, Same Balance
Balance is still 5,000 Cr
WEDNESDAY:
Trading Session: No Trades, Same Balance
Evening: They Bill the whole money for the shares I bought, Hence the remaining 65000 is billed at this point
Balance is now 60,000 Dr (Ie. -60,000)
THURSDAY:
During The Trading Session:
AT 11 AM ON THURSDAY:
Suppose I want to sell a part of my holding in company X, say I sell 1,000 Shares (Assume same rate of 100 for the sake of simplicity)
Hence I sell shares worth 1,00,000
Balance at 11 AM After Selling: 40000 Cr
AT 1 PM ON THURSDAY:
Suppose I want to re-buy some of my holding In the same company X, Say I want to buy 300 Shares, again at Rs. 100
Now, if you notice, sharekhan will not give you 30% margin on those shares, it will deduce the full amount from your balance, so for 400 Shares at Rs. 100 a share, it deducts 40,000 from your account, and not 12,000. Means I can only re-buy a maximum of 400 Shares (400*100 = 40000) even though I have sold 1000.
Can someone explain to me why this happens? Why am I not allowed to buy using margin again?