scripwise margin

[tomjerry]

didn't understand it all. can u explain it properly?

Here is an Example:

My account balance is Rs.10,000.

Reliance Scrip margin is 5x.

I can long buy Rs.50,000 worth stocks of Reliance for Intraday trading.

I can short sell Rs.50,000 worth stocks of Reliance for Intraday trading.

Infosys Scrip margin is 3x.

I can long buy Rs.30,000 worth stocks of Infosys for Intraday trading.

I can short sell Rs.30,000 worth stocks of Infosys for Intraday trading.

I must square off my intraday trade before market close or as per time defined by broker between 3 to 3:30pm. Some brokers close all margin trades between 3 to 3:30pm.

 

[jxcess]

Here is an Example:

My account balance is Rs.10,000.

Reliance Scrip margin is 5x.

I can long buy Rs.50,000 worth stocks of Reliance for Intraday trading.

I can short sell Rs.50,000 worth stocks of Reliance for Intraday trading.

Infosys Scrip margin is 3x.

I can long buy Rs.30,000 worth stocks of Infosys for Intraday trading.

I can short sell Rs.30,000 worth stocks of Infosys for Intraday trading.

I must square off my intraday trade before market close or as per time defined by broker between 3 to 3:30pm. Some brokers close all margin trades between 3 to 3:30pm.

ok I think I get it now. So suppose if my broker has a scripwise margin of 10% for reliance and I have 10,000 in my account, that means I can go long for (10000/0.1) = 100,000 and go short for the same amt. Am I right?

 

[tomjerry]

ok I think I get it now. So suppose if my broker has a scripwise margin of 10% for reliance and I have 10,000 in my account, that means I can go long for (10000/0.1) = 100,000 and go short for the same amt. Am I right?

it should be 10x (10 times) and not the 10% (10 percentage) for equity stocks.

 

[jxcess]

it should be 10x (10 times) and not the 10% (10 percentage) for equity stocks.

no but my broker gives them in percentages and I forgot to mention one more thing. Some stock have a scripwise margin of 100% but I am still able to trade in them on leverage. How is that possible? My broker is geojit.

 

[tomjerry]

no but my broker gives them in percentages and I forgot to mention one more thing. Some stock have a scripwise margin of 100% but I am still able to trade in them on leverage. How is that possible? My broker is geojit.

% margin is used for F&O future.
x margin is used for Equity Stock.

Never seen any broker mentioning what you said.

I don't trade equity stocks. I trade only F&O. so I don't know more

Call your broker and ask them, they will explain it.

 

[pakatil]

Yes.....10% means 10x, 20% - 5x and so on....

100% means no leverage, which means it has to be delivery based trade not intraday.