FAQs - Margin |
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What is a margin report? |
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This is a report that contains margin deposited by you and your utilization
under different asset class or trading segments.
You can verify the total margin limit utilized by yourself contract wise, scrip
wise, and exchange wise by browsing online to margin report.
You can also confirm the available trading margin through the same report and
can also confirm its status from your dealer / relationship manager. |
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What is margin deposit book? |
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Margin deposit book signify the total deposit provided by customer to broker for
trading in equities, commodities.
Broker maintain separate margin deposit book for trading in equities and
commodities
You may refer to margin report separately for equity and commodity and can
verify the total margin deposit before initiating trading.
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How can I verify the available margin in my trading account? |
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You may refer to margin report to verify the available margin in trading account
before trading.
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What are the type/ mode of margin deposit acceptable by broker? |
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A client can submit margin in any of the below form for availing trading
benefits:
- Fund Transfer through legitimate banking channel and from own/ self – account.
- Fixed Deposit prepared by broker on request from client post cash fund transfer as above (a).
- Bank Guarantee from prescribed bank.
- Eligible Shares/Securities/ ETFs
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How can I pay additional margin for trading in my account? |
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You can pay the additional margin by any of the following mode:
- Transferring funds online from registered bank account
- Submit cheques, demand draft (Demand draft should be supported with specific declaration)*
- Transfer acceptable securities, shares,
- Submit Bank Guarantee as per prescribed procedure from the designated bank.
* DD declaration format are available under downloads on
www.religareonline.com
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What shall I do when I see on placing an order, system displays the message
“Order cannot be accepted : Insufficient Margin or Admin reject” |
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The acceptance of your order is subject to fulfillment of various requirements
like availability of margin in your account, allowed contracts/scrips and other
pre-trade controls imposed by risk management team.
In such case you shall identify the available margin or positions and reduce
your order if it exceeds the margin / prescribed limit or alternatively contact
your Relation manager to seek assistance and necessary clarification.
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How can I compute margin against which trading limits are being defined? |
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Trading Limit will be provided on available margin.
Available Margin is the difference of Total Value of collaterals (margin
deposit), reduced by applicable haircuts, minus the Ledger balance (+ve in case
of Debit balance and –ve in case of credit) minus the applicable Span Margin of
open Derivative positions.
Margin = Total Value of Collaterals (After haircuts & maximum permissible
holding limits in case of E category stocks) – Ledger Balance– Span Margin
Example:
A Client holds 1200 shares of X Limited that has last trade price of Rs. 100.
Applicable Haircut for X Limited is 20% and broker can accept only 1000 shares
since the maximum permissible holding limit for X Limited shares is only 1000
per client basis at broker level.
A has a debit ledger balance for Rs.10000 (b) and has some Future Open
Positions. Span margin (c) being applied on open position is Rs. 20000.
Thus for calculating margin below calculation will be executed:
Total Value of Collaterals (a) = MIN (Actual Holding, Max Permissible holding
limit)*LTP*(100-Haricut)%
- 1000*100*80% = 80000 (Net applicable collateral Value)
- Margin = a-b-c => 80000-10000-20000
- Margin = 50,000
Margin % is Margin (as explained above) divided by value of collateral Multiplied by 100.
i.e Margin % = Margin/ Total Value of Collaterals(a) * 100
In the above example, Margin % would be= 50000/80000*100 i.e. Margin% = 62.5%.
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What if I don’t pay margin and have short margin for trading? What is the
broker’s policy of liquidation on short margin? |
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- Clients shall ensure to maintain a minimum Margin% as prescribed by member/broker (After applicable haircuts).
- In case of margin % remains below the threshold level, Risk Management team may square-off the positions appropriately to bring the margin to comfortable level.
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What does “Square off” means and what’s the broker’s policy for squaring off the
trade/ positions? |
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All open Margin/Intraday positions of Client get auto squared up i.e. in case of
buy position, system auto generate sale trade and vice versa at prescribed auto
square off time.
This shall be done by first cancelling all unexecuted pending orders and
thereafter square off the executed orders by putting square-off orders at market
rate
The time upon which this square off attempt may be started by the trading system
shall be the “Auto Square Off Time” [exact times shall be available on website].
However there is no surety that square off by trading system will be successful
partially/fully. This can happen due to various factors such as market crash or
connectivity related issues etc. Therefore Client should not leave square offing
off on the trading system but square off their own trades by their personal
efforts. However, if the open positions under Margin/Intraday are not
squared-off during the day for any reason and are carried over for the next
trading day, then those trades shall be treated as Delivery/Carryforward trade
as the case may be and client shall be responsible and liable for the trading
obligation as any other normal trade and shall pay the requisite margin and/or
the purchase consideration as the case may be.
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Which stocks are eligible for availing margin benefits? Where can I verify its
list and applicable haircuts? |
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All Exchange(s) on time to time basis releases their list of scrips acceptable
as margin for trading. Religare regularly reviews and update these scrips with
applicable haircuts and upload under “Trading Policy” on www.religareonline.com
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Where can I see the minimum margin % applicable for a contract? |
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All Exchange(s) release circulars on regular basis about the minimum applicable
margin for trading in securities, future, options and commodity contracts.
You may clarify the applicable margin % from your relationship manager during
your trading/dealings.
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What is the meaning of Mark to Market? |
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Mark to market is the revaluation of open positions at last traded price of
scrip available on exchange platform.
All positions regularly revalued to verify any trading losses that may arise in
future due to continuous change in price of scrip/ contract.
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What is additional margin? |
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At times whenever exchange(s)/ broker see high volatility in market or on a
particular scrip/contract, exchange/broker redefines the minimum margin % limit
on scrips or the threshold limit and release additional margin % to be collected
upfront for trading.
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How will I know if there is any margin shortfall on my open position? |
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Margin status report is updated on daily basis and is available to all the
clients, under the secured web login provided to the client.
You may check the margin status available under the web login on a daily basis
and in case the margin falls down below the threshold level, you should either
suffice the margin by paying addition funds/securities or reducing the market
exposure appropriately.
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Can I do anything to safeguard the positions from being liquidated? |
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In case your margin falls down below the threshold level, you should either
suffice the margin by paying addition funds/securities before next trading
session or reduce the market exposure appropriately to avoid action by Risk
team.
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Can I avail the benefits of collaterals as margin for trading? |
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Yes, you can deposit the collaterals in the manner and form as prescribed by the
regulators on time to time basis. The collaterals acceptable for margin benefit
for trading are securities, FDR, Bank Guarantee.
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Where shall I transfer the securities to avail margin / collateral benefit on my
securities? |
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You can transfer the securities to broker beneficiary account commonly referred
as margin account for availing margin benefit against securities.
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What are margin (broker beneficiary) account details of Religare? |
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Margin account of Religare Securities Limited and Religare Commodities Limited for accepting securities and commodities are as under:
| ENTITY |
MARGIN TYPE |
DPID/ CP ID |
CLIENT ID |
| Religare Securities Ltd |
Securities |
IN301774 |
10000167 |
| Religare Commodities Ltd |
Securities |
IN301774 |
10870331 |
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