Hi Experts,
I have been reading these forums for a while, and i have found the resources and information contained here very useful.
I have a few questions related to margin and would like to have answered, as I could not find answers to these questions by searching the forums.
Here is my situation : I have stock margin of approximately 3.5 lacs and 10,000 Rs cash in my account. I have bought Options worth 4000 Rs. My margin report says that cash margin utilized is zero while stock margin utilized is 1650 Rs. My questions are as follows:
1) Is is absolutely necessary to have margin account to trade in F&O
2) How do I specify which trade should use cash/stock margin. I have seen this facility in ICICI, cant find the equivalent option with Indiabulls(my Broker)
I do not want to utilize my stock margin as it accrues interest( please correct me if I am wrong here)
3) How do I specify if I want to buy shares using margin. If I buy shares on margin, is there a time period I can hold on to them ( i.e. How long do I have before I need to settle/square off position).
4) If I short shares will they be sold on margin? Do they need to be squared off on the same day.
5) In the example above, if I want to stop using my stock margin and use my cash margin(which does not accrue interest), how do I do it?
I am a newbie, hope my questions don't sound silly to you guys(and excuse me if my questions don't make sense or use wrong terminology).
Thanks
Future
I have been reading these forums for a while, and i have found the resources and information contained here very useful.
I have a few questions related to margin and would like to have answered, as I could not find answers to these questions by searching the forums.
Here is my situation : I have stock margin of approximately 3.5 lacs and 10,000 Rs cash in my account. I have bought Options worth 4000 Rs. My margin report says that cash margin utilized is zero while stock margin utilized is 1650 Rs. My questions are as follows:
1) Is is absolutely necessary to have margin account to trade in F&O
2) How do I specify which trade should use cash/stock margin. I have seen this facility in ICICI, cant find the equivalent option with Indiabulls(my Broker)
I do not want to utilize my stock margin as it accrues interest( please correct me if I am wrong here)
3) How do I specify if I want to buy shares using margin. If I buy shares on margin, is there a time period I can hold on to them ( i.e. How long do I have before I need to settle/square off position).
4) If I short shares will they be sold on margin? Do they need to be squared off on the same day.
5) In the example above, if I want to stop using my stock margin and use my cash margin(which does not accrue interest), how do I do it?
I am a newbie, hope my questions don't sound silly to you guys(and excuse me if my questions don't make sense or use wrong terminology).
Thanks
Future