Margin account facility

M

meenakshee

New Member
#1
#1
Hello friends,
Can anyone inform me about the broking houses that give margin account facility. By that I mean to allow the clients to sell the stocks before T+2.What are the chances of auction in such circumstances.
Thanks
Meenakshee
 
A

aad

Active Member
#2
#2
meenakshee said:
Hello friends,
Can anyone inform me about the broking houses that give margin account facility. By that I mean to allow the clients to sell the stocks before T+2.What are the chances of auction in such circumstances.
Thanks
Meenakshee
Click to expand...
See... ICICIdirect.com does offer the facility that you want, they call it BTST (Buy Today Sell Tomorrow). This facility is offered only to stocks on NSE that too on selected scrips. You have to check prior to buying if the same stock is available for BTST. Also, although they mostly allow 100% of the quantity to be sold in BTST, they reserve a right to change this %.

So far, I have never experienced auction to the stocks that I sold under BTST. Here, even if you receive short delivery for your eariler buy, you cannot escape the delivery obligation and your delivery will also be auctioned.

You mentioned T+2... it is actually T+3.

I hope this info. was of some use to you.

Regards,

Abhay
 
M

marcus

Active Member
#3
#3
Almost all brokers allow that.

Actually margin facility in the true sense of the word means margin funding not even exposure for intraday as most ppl think, margin funding is risky and not advisable unless you are an experienced trader moreover the interest is very high 13% p.m.

A lot of brokers allow this as well, I know Angel does, however you have to build a good relationship with the broker before they will even tell you they have margin funding facility.

ICICI Direct has two trading portals, the one you, I and aad uses is the web portal they also have another portal called directlink this is for clients who trade more than 20 crores per quarter, I know (casually acquainted) only one person who uses it. I think they have a different set of rules for that not sure but you can find out they may allow what you want for both exchanges under this scheme , just check.
 
U

unicorn

Member
#4
#4
marcus said:
Almost all brokers allow that.

Actually margin facility in the true sense of the word means margin funding not even exposure for intraday as most ppl think, margin funding is risky and not advisable unless you are an experienced trader moreover the interest is very high 13% p.m.

A lot of brokers allow this as well, I know Angel does, however you have to build a good relationship with the broker before they will even tell you they have margin funding facility.

ICICI Direct has two trading portals, the one you, I and aad uses is the web portal they also have another portal called directlink this is for clients who trade more than 20 crores per quarter, I know (casually acquainted) only one person who uses it. I think they have a different set of rules for that not sure but you can find out they may allow what you want for both exchanges under this scheme , just check.
Click to expand...
Hi Marcus
you have written that ICICI Direct have another portal called "directlink" ,can you give me the website of "directlink".
 
V

vivekppnair

New Member
#6
#6
Hi Friends,

I Have been investing in the stock markets for quite some time now, but have not traded. Just wanted to know as to what is meant by margin calls and when it is triggered. Does it occur when an investor trades in a stock??
Thank you very much
 
M

marcus

Active Member
#7
#7
no not in a stock its in futures or option writing, when u buy a futures you have to pay a margin in case of 1 lot nigty it is 13% initial margin and thereafter you have to maintain a 10% min margin this is calculated on the basis of CBOT Span software, what it does is it ensures that their is a 99% probability based on current volatility that eveif the underlying drops in value there is a 99% chance that the drop will be offset by the min margin maintained. There is a 1% probability that the stock may drop so much that the min margin maintained will not be enough to pay for the m2m loss when this happens you get a margin call where you have to deposit money in your account in order to maintain the min margin, you have to do this by 12:00pm next day or the broker will close your position and sell any of your holdings to pay for the m2m loss.
 
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