Daytrading - Margin Money and BSE A, B1,B2,Z Categories?

#1
I'm new to stock trading as well.. Learning all rules of the "Day Trading" game... It seems there are people spread through using all these leading online brokers...

1. I would like everyone to share info on what MARGIN MONEY each of these online brokers offer on DAY TRADING... I came to know ICICI offers 20 times what you actually old in your Dmat account... Is that correct?

2. Do you get margin money and are allowed to day-trade on all kinds of stocks? I mean, can you buy-sell any stock ?

3. Can I day trade on ANY stock ? I'm still confused about BSE A, BSE B1, BSE B2, BSE 30, BSE Z categories? What are they? Are there any such more categories? Can we day-trade in stocks of all these categories?

I once again admit that I'm a newbie into this stocktrading world, Looking forward for true guidance from the community at this stage of myself...

Thanks,
Sanjay.
 
#2
Sanjay123 said:
I'm new to stock trading as well.. Learning all rules of the "Day Trading" game... It seems there are people spread through using all these leading online brokers...

1. I would like everyone to share info on what MARGIN MONEY each of these online brokers offer on DAY TRADING... I came to know ICICI offers 20 times what you actually old in your Dmat account... Is that correct?

2. Do you get margin money and are allowed to day-trade on all kinds of stocks? I mean, can you buy-sell any stock ?

3. Can I day trade on ANY stock ? I'm still confused about BSE A, BSE B1, BSE B2, BSE 30, BSE Z categories? What are they? Are there any such more categories? Can we day-trade in stocks of all these categories?

I once again admit that I'm a newbie into this stocktrading world, Looking forward for true guidance from the community at this stage of myself...

Thanks,
Sanjay.

Hello Sanjay,
Good to see that you are asking the help at the right place. In this forum you will get advice from many experts who have been doing trading for a long time.
I would try to answer you questions one by one.


Regarding the margin money what i know from my friends is that they offer the facility that you can trade if you have the margin amount in you account. That is to say that you can trade for 10000 if you have the margin amount that is 21% of it thats 2100. So you can trade around five times your balance.

This facility is not available for all the stocks. Its available for some specific stocks decided bu icicidirect.com. But all the stocks of sensex and nifty are included and the list is large so you can get lots of alternatives.

But if you take a personal advice from me, better you check the brokerage for day trades from different brokers and the minimum brokerage before going for any broker. Icici charges 0.1 for day trades and minimum brokerage is 15 Rs. FOr more demat related matters you can go through a thread in this same forum on demat matter.

I hope i have answered most of the questions. If you have any other queries i would be happy to help you...


Beyond Greed And Fear..:) :)
 
#3
dear sanjay,
go to the site www.bseindia.com, under listing go tolist of companies. you will get a list of all companies under A, B1,B2,S,T,TS AND Z CATEGORIES. There are also many other indexes like midcap, smallcap, psu index etc. this site is a fantastic site which gives you tremendous amount of information. Similarly visit www.nseindia.com of the national stock exchange. spend some time navigating different menus.

as regards trading ICICI does not allow trading in all the scrips. A list is available on their site. As regards other sites, i do not know whether they allow trading in all the scrips. Since you are a newbie, please be very very careful in day trading, because most of the new daytraders are heavy losers. If at all you wish to go for day trading then strictly follow the recommendations including stop loss of great people on this forum like amitbe, saint, supratik and other senior members.
 
#4
Hello Mr. Raj and Mr. Rakamath,

Thanks for your true helpful guidance. I've opened my account with 5Paisa and checking out their Trading Terminal2005. They'll charge overall Rs. 84/- for a two way day trade of Rs. 1 lakh. That's their overall brokerage. But they aren't offering much margin money, they are only offering 1X margin money and that too at an interest of 1% per month's basis. With that, the only offer a max 1lakh for my 1lakh put to business. I think this is too little as I originally heard that ICICI was offering 20X margin money on a set of approved stocks.. and now I come to know from yourself that they offer 5X...

<b>I believe that the price table of stocks shown by all of these online brokers' systems SHOULD have a column reflect how much X the margin money is available to the specific trader at any specific time according to his/her account balance and according to the criteria of the broker...</b>

Please let me know what do you think about it...

I've heard icicidirect's site is slow, so not sure if it's worthwhile to open an account with them as well...

Being new to this world, I still have a few questions :

1) I'm still not sure if a trader is allowed to day trade on ANY stock in the market...

2) A friend of mine lately told me that some of the orders we place are declined AFTER the end of the trading session... and you do not get stocks... Still don't know what does that mean... Will be grateful if a senior member can guide me on this front...

3) I still have no explanation as to what ADVANCES and DECLINES are...

This is my BEGINNING period on the stock trading front... what I have is a power programming background and I intend to develop my own systems through live data feeds from SOME sources out there so that we can end up with POWER trading guide platform that can perform advanced technical analysis and can issue live alerts for us traders to trade accordingly.. I'm learning all analytical tools and formulae and their effectiveness...

What I truly look for is a collaborative approach from at least a few junior and senior members that can contribute resources together to create a power trading network supported by some power trading application that I can develop... I look for a collaboration where several senior and junior members over here may contribute live feeds that they are getting from different sources of their own.... so that we can set them up as alternative routes for getting live data feed for the future power application that I develop... I also look forward for formulae and procedures that senior members would like me to code and develop so that we come up with this power application in no time...

Members that share my vision can leave their message right over here on this thread and I'll contact them through yahoo messenger from my personal filtered real email account that I safeguard for spam issues.

My vision is that a few members over here come forward together and share all resources they have and work as a team and help build such a powerful application... With that, I CAN develop the application in such a way that it will issue trading calls and alerts to all our team members through yahoo messenger OR... I can setup a web site where all core team members will have their admin area and they'll add the scrips they want to watch... and our system will deliver alerts to them right through OUR web site in this way....

I invite junior and senior, new-starters an expert traders to our new collaborative team called V2TRADE.

For now, please don't forget to answer my few basic questions that I asked above....

My best regards,
Sanjay.
 
#5
Sanjay123 said:
Hello Mr. Raj and Mr. Rakamath,

Thanks for your true helpful guidance. I've opened my account with 5Paisa and checking out their Trading Terminal2005. They'll charge overall Rs. 84/- for a two way day trade of Rs. 1 lakh. That's their overall brokerage. But they aren't offering much margin money, they are only offering 1X margin money and that too at an interest of 1% per month's basis. With that, the only offer a max 1lakh for my 1lakh put to business. I think this is too little as I originally heard that ICICI was offering 20X margin money on a set of approved stocks.. and now I come to know from yourself that they offer 5X...

<b>I believe that the price table of stocks shown by all of these online brokers' systems SHOULD have a column reflect how much X the margin money is available to the specific trader at any specific time according to his/her account balance and according to the criteria of the broker...</b>

Please let me know what do you think about it...

I've heard icicidirect's site is slow, so not sure if it's worthwhile to open an account with them as well...

Being new to this world, I still have a few questions :

1) I'm still not sure if a trader is allowed to day trade on ANY stock in the market...

2) A friend of mine lately told me that some of the orders we place are declined AFTER the end of the trading session... and you do not get stocks... Still don't know what does that mean... Will be grateful if a senior member can guide me on this front...

3) I still have no explanation as to what ADVANCES and DECLINES are...

This is my BEGINNING period on the stock trading front... what I have is a power programming background and I intend to develop my own systems through live data feeds from SOME sources out there so that we can end up with POWER trading guide platform that can perform advanced technical analysis and can issue live alerts for us traders to trade accordingly.. I'm learning all analytical tools and formulae and their effectiveness...

What I truly look for is a collaborative approach from at least a few junior and senior members that can contribute resources together to create a power trading network supported by some power trading application that I can develop... I look for a collaboration where several senior and junior members over here may contribute live feeds that they are getting from different sources of their own.... so that we can set them up as alternative routes for getting live data feed for the future power application that I develop... I also look forward for formulae and procedures that senior members would like me to code and develop so that we come up with this power application in no time...

Members that share my vision can leave their message right over here on this thread and I'll contact them through yahoo messenger from my personal filtered real email account that I safeguard for spam issues.

My vision is that a few members over here come forward together and share all resources they have and work as a team and help build such a powerful application... With that, I CAN develop the application in such a way that it will issue trading calls and alerts to all our team members through yahoo messenger OR... I can setup a web site where all core team members will have their admin area and they'll add the scrips they want to watch... and our system will deliver alerts to them right through OUR web site in this way....

I invite junior and senior, new-starters an expert traders to our new collaborative team called V2TRADE.

For now, please don't forget to answer my few basic questions that I asked above....

My best regards,
Sanjay.

Dear Sanjay,

1. ICICI Direct is really very slow and is not advisable to use. Its Customer Service is also pathetic. Having said that, ICICI Direct offers 20 times margin on select stock for day trading if and only if a stop-loss is put at the time of placing the order only. In that scenario, they calculate the maximum amount of risk as Order Price-Stop Loss and thus can offer better margins. In all other scenarios, the margin is 5X only.

2. One can't trade all the stocks in intraday. There is an approved list of stocks. However, it covers almost all the liquid counters.

3. Advances means prices going up and Declines means prices going down. For example, if advance-decline ratio for Nifty on a given time is 44:6 it meant that prices of 44 stocks forming part of Nifty have moved up while the rest 6 have moved down.

4. I have no idea about orders not being executed and hence can't comment on that.

Best Regards,
 

mani

New Member
#6
Hai Everybody
i would like to know if anyone have some experience trading with HDFC securities day trading. any advice in this regard will be much appreciated.
with kind regards
mani
 
#7
hello Sanjay,
Please try kotakstreet.com, they offer u 15 times the margin money for your trades.
As for as the brokerage is concerned, sharekhan is quite amenable to negotioations.
Most of these broking houses have their lists of securities in which they permit margin trading depending on the liquidity of particular scripts. In case a script is not on margin list, their system wont accept your order
 
#8
Hello aca_trader,

Thanks for your help. I've opened my trading account with 5paisa and now realize I've wasted my time. They're just offering 1x margins. Nothing more than that.. I think I'll have to visit each and every online broker and compare what each of them offers. Moreover, their 5ptrader isn't that helpful with the required features such as adding custom studies, zooming and unzooming a specific region of the graph by stretching it through some handles..

Now since you've mentioned that one can't buy n sell stocks in intraday, then there's a real need for each stock to be shown in table if it's allowed for intraday or not... Stocks should highlight if they can be squared off within the same settlement period position taken...

A new beginner like myself still needs to know about :

1. TT things...
2. Limit order, market order, and any other kind of orders that are there...
3. Info on settlements... what are rolling settlements, cash settlements and trade settlements and any other kind of settlements...

I'd appreciate if expert members here can guide a beginner in the right direct empowering with the required info.

Thanks once again,
Best regards to all visionary traders of the community,
Sanjay.
 
#9
Sanjay123 said:
Hello aca_trader,

Thanks for your help. I've opened my trading account with 5paisa and now realize I've wasted my time. They're just offering 1x margins. Nothing more than that.. I think I'll have to visit each and every online broker and compare what each of them offers. Moreover, their 5ptrader isn't that helpful with the required features such as adding custom studies, zooming and unzooming a specific region of the graph by stretching it through some handles..

Now since you've mentioned that one can't buy n sell stocks in intraday, then there's a real need for each stock to be shown in table if it's allowed for intraday or not... Stocks should highlight if they can be squared off within the same settlement period position taken...

A new beginner like myself still needs to know about :

1. TT things...
2. Limit order, market order, and any other kind of orders that are there...
3. Info on settlements... what are rolling settlements, cash settlements and trade settlements and any other kind of settlements...

I'd appreciate if expert members here can guide a beginner in the right direct empowering with the required info.

Thanks once again,
Best regards to all visionary traders of the community,
Sanjay.



Hey Sanjay,
I will try to clear your doubts friend.

First question is regarding TT. Its a trade to trade segment. If you buy stock in TT segment you are supposed to take delivery of the stock.

Limit order is a buy/sell order that is executed when a specific price is reached. For example if you put a limit order to buy Reliance at 340 that the order will execute only if the stock reaches the price of 340.

Market order is the order in which the order would be executed at the current market price.

In a Rolling Settlement, all trades outstanding at end of the day have to be settled, which means that the buyer has to make payments for securities purchased and seller has to deliver the securities sold.

Cash Settlement is payment for transactions done in one settlement on the due date.

I hope I answered most of your queries for any other doutb post in this thread friend.


Beyond Greed And Fear...:) :)
 
#10
Hello Raj,
I'm totally overwhelmed by the amount of support I'm receiving at traderji. I must thank you for the time you're taking to clarify my doubts and guide me with the right info.

It seems to me that rolling settlements are for NON INTRADAY trades when the buyer seeks deliveries. And I think rolling settlement will not take place in case of squared off day trading positions. Please let me know if I'm talking correctly with the right terms.

Regarding cash settlements, it seems it's the total cash transactions that take place at the end of every day in ONE settlement...

So the concept of rolling settlement and cash settlement seems same as aaj kaunsa dhanda kitna hua... Rolling ka kitna hua aur cash ka kitna hua... Kisi nein delivery lee means usnay rolling settlement karwaya.. aur jisnay squareoff karkay day trade kiya, uska cash settlement hua....
AM I CORRECT?

Raj bhai, please guide me on how can I know a share belongs to TT category.... With that it means that if I buy a TT category share, then I WILL HAVE TO take the delivery and make the payment... GOSH.... I'm only planning to day trade and start up right from the bottom with my learning curve... step by step... slowly and steadily... Later I plan to end up as a long term investor... for now.. Just want to hold the stock for a small time, make some profit or loss, and then just quit with learning a lesson... and that's it!

I have my power programming background and I'm learning all tips and tricks of equity trading... Keeping away from ANY info on future and options... I believe those are for expert traders who knows the real trend of the market in terms of macro-economic factors in the broader sense.

I'm told by 5paisa people that no margin is offered for z category shares... And most of the shares do not belong to z category.. Is this Z category same as TT...

New to trading... Have a question regarding 5paisa that I should ask 5paisa people rather than here... Do they square off all trades at the end of the day if I've told them that I'm here just day trading and no seeking any deliveries?

Kindly brainstorm me.
Thank you.
My best regards,
Sanjay123.
 

Similar threads

Intraday Higher Leverage

Save up to 90% in brokerage and get higher leverage for intraday trades.

Name:Phone:
Email:City:
State:
Are you a day trader?