Intraday Margin

Suppose you have INR 100 in your D-mat account, you can buy up to INR 500 for intraday.

5 times intraday margin is standard for every broking firm (it may vary from company to company).

(Why 5 times?

Because stocks have their circuit breaker at 20% )

When you buy shares for INR 500, INR 400 is paid by the broker. That’s why margin is given only for intraday. It is given for generating more and more brokerage.

When you buy a share for 100Rs. Its your share, you can sell it whenever want you want to sell it.

When you buy shares for 500Rs, you have to book profit or loss for the same day. That’s how people get loss from the market.

And they curse market.

Don’t trade on margins. Trade in your limits.