How can a margin trade be converted to delivery at the end of day if the person's position is in lose?
seems a gud way to escape loss by converting the positions to delivery! I dont think u can do that.
Margin trading is done under different area, i mean your orders buy/sell are considered under margin trading and bye the end of day , u hav to square off your position no matter u r in profit or loss.
If u dnt square off, u will be forcefully squared off. that is what margin trading is. thats why margin trading is risky.
all the margin trades are settled on same day and are cash settled though the delivery of stocks happens for a short period of time , i,e only till market hours.
Also, every brokerage company has different margin limit which means if u trade under margin trading and hav 1 lac Rs. in your account then under margin trading , u can buy/sell 3 to 10 times the value of money u hav in your account.
som companys provide margin limit of 4 times, som give 6 times exposure and som even giv 10 times.
if u hav 10 times margin limit, then with only 1 lac Rs. , u can buy/sell shares worth 9 or 10 lacs ( brokerage not included)
if your position by the end of day is in loss, u cant convert it into delivery as u only hav 1 lac amount also it needs to be squared off which is compulsory.
Experts r always welcome to correct me where ever i am wrong.
seems a gud way to escape loss by converting the positions to delivery! I dont think u can do that.
Margin trading is done under different area, i mean your orders buy/sell are considered under margin trading and bye the end of day , u hav to square off your position no matter u r in profit or loss.
If u dnt square off, u will be forcefully squared off. that is what margin trading is. thats why margin trading is risky.
all the margin trades are settled on same day and are cash settled though the delivery of stocks happens for a short period of time , i,e only till market hours.
Also, every brokerage company has different margin limit which means if u trade under margin trading and hav 1 lac Rs. in your account then under margin trading , u can buy/sell 3 to 10 times the value of money u hav in your account.
som companys provide margin limit of 4 times, som give 6 times exposure and som even giv 10 times.
if u hav 10 times margin limit, then with only 1 lac Rs. , u can buy/sell shares worth 9 or 10 lacs ( brokerage not included)
if your position by the end of day is in loss, u cant convert it into delivery as u only hav 1 lac amount also it needs to be squared off which is compulsory.
Experts r always welcome to correct me where ever i am wrong.
